KOTA KINABALU – The Sabah assembly today approved an amendment to a state law on Covid-19 temporary measures to extend an exemption period granted for housing developers and homebuyers in the state.
State Local Government and Housing Minister Datuk Seri Masidi Manjun said the extension period involved late payment charges, delivery of vacant possession, and liquidated damages as well as the defect liability period.
He said developers had expressed that the extension period provided under the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Enactment 2020 from March 18 to December 31, 2020, and then from January 1, 2021, until March 31, 2021, was insufficient.
“Therefore, the ministry is of the opinion that there is a need to extend the exemption period for developers and homebuyers provided by the enactment from April 1, 2021, to March 31, 2022,” he said when tabling the motion to amend the enactment here today.
Masidi said the tight movement control order and standard operating procedures to curb Covid-19 prohibited developers and contractors from working at construction sites, which made it difficult for them to complete and deliver homes to buyers within the period stipulated in the sales and purchase agreement.
“Regulations and standard operating procedures such as cross-district travel restrictions, limits on the number of workers on construction sites, and closure of construction sites due to detection of positive Covid-19 cases affected the completion and delivery of house units to homebuyers.
“The delay in the completion of housing projects will cause homebuyers to claim liquidated damages,” he said.
Masidi said that even though the country went through several phases of the National Recovery Plan starting in July 2021, the supply of building materials and manpower was still impacted, adding that some developers also suffered losses due to the increase in the price of building materials and additional costs.
Sabah Speaker Datuk Seri Kadzim M. Yahya then adjourned the sitting sine die. – Bernama, December 1, 2022
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