Steps must be taken to reduce construction activity in order to control fixed-asset investment growth, a National Development and Reform Commission minister has said. Ma Kai warned that the possible rebound in investment and overcapacity in certain sectors would be exacerbated if investment growth was allowed to proceed at its current rate. Despite the introduction of economic cooling measures last year, fixed-asset investment rose by 25.7% in 2005, only a small reduction on the 26.6% recorded in 2004. Ma singled out steel, cement and electrolytic aluminum as the sectors most troubled by overcapacity. He added that company closures, job losses and a rise in non-performing loans would occur if the problem was not addressed properly.