04/06/2026

PROPERTY THURSDAY | JUNE 4, 2026

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MBAM: Fixed-price contracting unworkable in current market

Glomac unveils low-density 16 Legacy in Saujana Rawang KUALA LUMPUR: Glomac Bhd recently unveiled 16 Legacy, an exclusive collection of 16 two-storey semi-detached homes within Saujana Rawang. With a GDV of about RM21 million, the development represents a refined low-density residential offering within the township. Starting from RM1.2 million, each residence at 16 Legacy is designed to support multi-generational living through expansive layouts and flexible spatial planning, set on a minimum lot size of 45’ x 80’, offering a more generous land footprint that enhances space and overall liveability. Each unit is complemented by over 16ft of side and backyard space, creating opportunities for private gardens and quiet outdoor living. Set within a lakeside environment, 16 Legacy offers a lifestyle that brings nature closer to home, with green surroundings and water elements forming part of the broader Saujana Rawang masterplan. Group managing director and CEO Datuk Seri FD Iskandar said,“16 Legacy represents a deliberate step forward in how we shape our residential offerings. With only 16 homes, this is an intentionally low-density development that prioritises space, privacy and long-term liveability.” “We recognise that today’s homebuyers, particularly multi generational families, are seeking homes that can evolve with them over time. 16 Legacy brings together flexibility, a strong sense of place and the tranquillity of a lakeside setting within Saujana Rawang.”

a healthy pipeline of infrastructure and development projects. He said contractors are grappling with volatile material costs, shortages of skilled labour and rising operating expenses linked partly to supply-chain disruptions arising from the conflict in the Middle East. At the same time, Wee also pointed out that Malaysia’s con struction sector is undergoing structural transformation as multi national companies pursue “China+1” strategies and channel investments into Asia, particularly in high-tech manufacturing, logistics and hyperscale data centres. “In 2025 alone, we saw the influx of hyperscale data centre, especially in Selangor. And this momentum has carried into 2026,” he said. He added the shift has transformed construction firms from traditional service providers into strategic partners supporting global technology and infrastructure investments. However, he noted that inter national investors now demand higher standards in delivery speed, scalability and ESG transparency. “Malaysian builders are now competing not only domestically but against international benchmarks demanded by global capital.” He said that the government’s RM81 billion development expenditure allocation for 2026, together with projects such as the Penang Mutiara LRT, Johor RTS Link and Klang Valley flood mitigation initiatives, continue to support industry activity.

price as an excessive emphasis on cost-cutting often comes at the expense of project quality, delivery certainty and the long-term sustainability of the construction ecosystem. Instead, Wee said greater emphasis should be placed on value creation, contractor capability, resi lience, innovation and the ability to deliver projects sustainably amid increasingly volatile market con ditions. He noted the traditional contracting approach, which largely prioritises legal protection and rigid risk allocation, is becoming less suitable in today’s operating environment where material prices, labour availability and supply-chain conditions can shift rapidly. “Contract must evolve from being merely a legal protection document into an effective risk management and project delivery tool,” he highlighted. Wee said a more balanced and cooperative contracting environment would not weaken accountability, but instead improve collaboration be tween stakeholders, strengthen project certainty and reduce the likelihood of costly disputes and delays. He added that a fairer and more adaptive contracting framework would improve the overall likelihood of successful project completion while helping the industry withstand future economic and geopolitical shocks more effectively. Wee said the industry is currently navigating a “perfect storm” despite

the Malaysia Building & Property Summit 2026 recently. He said that when contracts become excessively rigid and project risks are unfairly transferred to contractors, the consequences eventually ripple across the wider construction ecosystem, under mining project certainty, financial sustainability and delivery timelines. According to Wee, contractors are facing severe cash-flow pressures as rising material costs, labour short ages and operating expenses become more difficult to absorb under fixed-price arrangements that were structured for a far more stable market environment. “Contractors face severe cash flow pressure, claims and disputes increase, progress slows down and in some cases projects may be abandoned or significantly delayed,” he said. He added such conditions not only strain contractors financially, but also contribute to rising disputes, slower project execution and growing uncertainty across both public and private sector developments. Wee said that the ultimate impact of unsustainable contracting structures is ultimately borne by end users and project owners through project delays, cost overruns and uncertainty surrounding completion timelines, particularly as Malaysia accelerates major infrastructure and industrial projects nationwide. He remarked that procurement practices should no longer focus solely on securing the lowest bid

KUALA LUMPUR: Traditional fixed price contracting models in the construction sector are becoming unworkable under current market conditions, according to Master Builders Association Malaysia (MBAM) president Oliver Wee. Wee said the industry is operating in an environment unlike anything experienced in recent decades, driven by rising operating costs, supply-chain disruptions and eco nomic uncertainty that have funda mentally altered the business landscape. “Many projects are still being procured and administered using conventional fixed-price contracts designed for a far more stable operating environment, despite rapidly changing cost structures and increasingly unpredictable market conditions. This reality is simple and the current ways of contracting are no longer workable, at least under present circumstances,” he said at o Builders face severe cash-flow pressures amid rising operating costs and supply chain disruptions, among other factors Ű BY HAYATUN RAZAK sunbiz@thesundaily.com development recording a sell-out, the new high-rise enters its last mile reflecting strong buyer confidence in Trinity Group’s vision of wellness centric urban living. The development was met with a favourable market response, seeing Block A (Phase One) launched in September 2024, fully taken up ahead of schedule. Block B (Phase Two) is now open for purchase, with units priced from RM568,000. Trinity Rainfora is a freehold development with a GDV of RM395 million, set on 2.4 acres of land in Bandar Kinrara. The development comprises two 31-storey residential towers housing 535 units, with built up sizes ranging from 739 to 1,184 sq ft, and prices starting from RM530,000. Additionally, Trinity Rainfora features nine commercial units with built-ups of 3,859 to 15,905 sq ft, priced from RM3.5 million. Both towers are targeted for completion in Q3’27.

Trinity Group tops out Trinity Rainfora as phase one sells out KUALA LUMPUR: Trinity Group Sdn Bhd marked a pivotal construction milestone with the recent topping out ceremony of Trinity Rainfora, its rainforest-inspired transit-oriented development (TOD) in Bandar Kinrara, Puchong. With Phase One of the

Trinity Rainfora’s striking twin-tower facade, designed to redefine Bandar Kinrara’s skyline with nature-infused, wellness-centric living.

Programme, featuring extended warranties that go well beyond industry norms including a 36-month Defect Liability Period, a 5-year warranty against tile pop-ups, and a 10-year roof leak warranty.

portfolio, which to date has delivered developments with a cumulative GDV exceeding RM2.8 billion. Trinity Group stands out as Malaysia’s first property developer to introduce a 10-Year Gold Assurance

where nature, wellness and urban connectivity converge seamlessly to amount to a true sanctuary for the modern homeowner.” Trinity Rainfora is the latest addition to Trinity Group’s growing

Banking & Finance Managing director Datuk Neoh Soo Keat said, “Trinity Group has always been guided by a clear conviction: to build homes that enrich the lives of their owners. With Trinity Rainfora, we set out to create a living environment

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