PETALING JAYA: Many contractors are in dire state due to various additional costs arising from the Covid-19 pandemic, including high steel bar and copper prices, insufficient workers, high Act 446 compliance cost, high Covid-19 SOP and swab test cost.
Master Builders Association Malaysia (MBAM), that represents a total 17,000 members, is seeking immediate economic support from the government.
“We thank the government for allowing critical maintenance and repair works and critical construction works for major public infrastructure to operate during the total lockdown starting tomorrow,” MBAM executive director Loh Mei Ling said in a statement today.
She said all the extra costs were not factored in at the start of project and with no provision in the Covid-19 Bill to protect the contractors.
“We have been biting the bullet in order to ensure that projects can still be completed on time and providing job security to the many workers in the industry,” she added.
With the six weeks total lockdown across two phases and potentially longer, many contractors cannot absorb the additional costs anymore and might fold, Loh pointed out.
“MBAM hopes that the government will soon announce and roll out additional stimulus package to assist the economy and people to cushion the economic impact for the industry for all Malaysians,” she added.
The association also suggested the following:
• Automatic moratorium extension for people and businesses starting from 1 June 2021.
• Financial assistance and low interest financing rates to provide financial aid to businesses.
• Tax break for businesses and provide utilities subsidies throughout the total lockdown period.
• Wage subsidy programme for all employees with the salary of RM 4,000 and below.
• Speedy payment for government projects to be made especially for the month of May 2021
• At all tiers to ease cash flow of the construction industry.
• Waiver of levy for foreign workers renewing their work permits and extension of permit approval for those stuck in home country who are unable to enter during lockdown and for those who will be overstaying due to the movement restriction imposed. It is hoped that the Immigration Department of Malaysia can consider the waiver of fees for special pass due to overstaying during the lockdown period.
• Extension of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020. The Covid-19 Bill must also protect contractors and to expressly state the provision for extension of time (EOT) and cost sharing between contracting parties.
• Contractors should also be allowed to ask for compensation from project owners.
• Speedy payment for government projects to be made especially for the month of May 2021
• At all tiers to ease cash flow of the construction industry.
