Master Builders Association Malaysia (MBAM) said today the industry is still reeling from the financial impact of the Covid-19 pandemic, such as conducting Covid-19 tests for construction workers and the cost of complying with the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446).
It said these costs were not factored in at the start of projects and there is no provision in Covid-19 assistance bills to protect contractors.
“We have been biting the bullet to ensure that projects can still be completed on time and provide job security to many workers in the industry.
“With the six-week total lockdown across two phases and potentially longer, many contractors cannot absorb the additional costs anymore and might fold.
“In the short to medium term, the industry will face shortages of contractors and lead to overall price escalation,” the association said in a statement.
MBAM called on the government to provide an additional stimulus package to cushion the economic impact on the industry.
Among others, it called for an automatic moratorium from tomorrow and a wage subsidy programme for all employees with a salary of RM4,000 and below.
It also urged the Immigration Department to provide a waiver of levy for foreign workers renewing their work permits and an extension of the permit approval for those stuck in their home countries.
Further, MBAM urged the government to provide a tax break and utility subsidies throughout the total lockdown period.
“Additionally, the government should look into free mass Covid-19 testing for every single person nationwide to trace and break the Covid-19 chain. The vaccination rate in the National Covid-19 Immunisation Programme must also be expedited with the assistance of private hospitals and clinics,” it said.
The nationwide lockdown, similar to the first MCO, will be from tomorrow to June 14. However, with further phases of lockdown, it will be July 16, at best, before Malaysia can reach conditional MCO status again.
Under the total lockdown, only essential economic and services sectors are allowed to operate. Critical maintenance and repair work and critical construction work for major public infrastructure are also allowed.
MBAM represents close to 17,000 members in the construction industry.