THE construction industry needs the Government to urgently review the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Bill 2020 given ample time and cost sharing are needed before the industry is able to comply with the law.
Against the backdrop of lacklustre economy, the Master Builders Association Malaysia (MBAM) wants the Government to consider the minimum extension of time (EOT) of 167 days for every industry player.
“Currently, (property) developers are given 167 days by the Ministry of Housing and Local Government (KPKT) but there is nothing stated in the Bill for contractors,” the association pointed out in a media statement.
“At the moment, there are also too many additional compliance costs for contractors to absorb. MBAM suggest that these costs should be borne equally by both contracting parties (contractors and clients).”
MBAM which was founded in 1954 currently has 17,000 direct and indirect members comprising of corporations, affiliated associations and associated industry companies in the construction industry.
On this issue of foreign workers quarantine, COVID-19 screening cost and medical treatment cost, MBAM opined that it is not fair to pass the cost down entirely to contractors who are facing increasing financial burden in the likes of rising building material prices, standard operating procedure (SOP) compliance costs and cash flow issues.
“The Government should look into providing full subsidy to ease the burden of construction industry and encourage mass screening using affordable test kits,” pleaded MBAM.
“At this point in time, as far as we know, clients are unwilling to share such cost. All these are costs that were not predicted thus creating cash flow issues for contractors.”
Additionally, MBAM also raised the issue on temporary transportation to transfer workers, especially those who are staying off-site. Currently, there is difficulty in transferring workers from their off-site accommodation to site as there is not enough transportation available.
“Therefore, MBAM has suggested to the Government to allow temporary permits to be issued to Bas Sekolah and Bas Kilang operators to allow them to ferry workers so that movement can be under control,” proposed MBAM.
Elsewhere, MBAM suggested that the naming convention for centralised labour quarters (CLQ) be changed to penempatan pekerja to avoid confusion over the term of CLQ.
“Off-site workers accommodation that comply with Act 446 (Workers’ Minimum Standards of Housing and Amenities Act 1990) should also be allowed under the Building Construction Works category but in a controlled environment with restricted movement,” noted MBAM.
“There is also a need for faster approval by the Department of Labour (JTK) to obtain Certificate for Accommodation (CFA) and the need for local authorities to have a standardise criteria for approving workers accommodation.” – Jan 27, 2021
