KUALA LUMPUR, July 19 — The Malaysian Malay Contractors Association (PKMM) supports the government’s decision to defer public development projects, at a time when the economy is still volatile.

Its president Datuk Seri Mohamed Fadzill Hassan said postponing development projects before starting them is better than suspending them midway through because of financial issues, Berita Harian reported today.

"I have no issue with postponing projects, as that is much better than running a project but not having the money to finish it,” he was quoted as saying.

He said there is no need for large expenditures on projects that are unimportant, considering the current state of Malaysia's economy.

But he also said that projects that bring benefits to Malaysians, such as road maintenance, should be continued.

Mohamed Fadzill told the Malay paper that he does not think the government’s decision to postpone these development projects will result in losses to contractors.

"As long as the letter of acceptance is not issued, contractors will not take on workers. Orders will not go out for building materials and there will be no need to purchase insurance for workers.

"If a project is not run, the contractor will not have to do any of the above and will not need to bear any costs. The contractor faces no loss and the government also has no need to pay,” he was quoted as saying.

Last Saturday, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed announced that projects that have yet to commence will be postponed so that money can be channelled for the welfare of the people and economic recovery.

The move followed a directive issued through the Malaysia Treasury Circular — Guidelines on Public Expenditure Savings.