They must put in place effective construction dispute mechanisms to overcome any legal risk, Assistant Law, State-Federal Relations and Project Monitoring Minister Sharifah Hasidah Sayeed Aman Ghazali said.

Sharifah said although construction disputes were common worldwide, it was crucial to identify the potential issues at the earliest time possible.

She said it was important to understand the cultural differences between contracting parties, especially in light of the increasing participation of international players.

“If we are able to drastically reduce the number of disputes which cause delays, while exponentially increasing the number of projects, Malaysia will become a model for other jurisdictions to follow,” she said in her keynote address at the Asian International Arbitration Centre (AIAC) standard form of building contracts roadshow here.

Sharifah said Sarawak’s economy was moving towards a promising future in line with its agenda of being a high-income economy by 2030.

She said the construction sector in the state was expected to achieve 16.8% growth this year.

She also said the Development Bank of Sarawak (DBOS), established in 2018, played a key role in providing alternative financing for infrastructure projects such as roads, bridges and schools.