KUALA LUMPUR – The Master Builders’ Association Malaysia (MBAM), with almost 17,000 members in the construction industry, is seeking immediate economic support from the government in view of the Covid-19 lockdown that takes effect tomorrow.
In a statement today, it said many contractors are in dire straits, having to shoulder various additional costs arising from the pandemic, including but not limited to higher steel bar and copper prices, insufficient workers, Act 446 compliance expenditure, and standard operating procedure compliance and swab test costs.
“All these costs were not factored in at the start of a project, and with no provision in the Covid-19 Bill to protect contractors, we have been biting the bullet to ensure that projects can still be completed on time, and to provide job security to many workers in the industry.”
With a six-week lockdown across two phases, which may be extended, said MBAM, many contractors cannot absorb the additional costs any more, and risk going out of business.
In the short to medium term, the industry will face contractor shortages, leading to overall price escalation, it warned.
MBAM said it hopes the government will announce a stimulus package soon to assist the economy and rakyat.
Among its suggestions are an automatic moratorium for people and businesses starting June 1; financial assistance and low-interest financing rates for businesses; a tax break for businesses and the provision of subsidies for utilities throughout the lockdown period; and, wage subsidies for employees with a salary of RM4,000 and below.
It said the government should also look into providing free mass Covid-19 testing for everyone in the country.
The vaccination rate under the National Covid-19 Immunisation Programme must be accelerated with the help of private medical facilities, it added.
“The government has been trying to strike a balance between the economy and people’s livelihood.
“However, in reality, the Malaysian construction industry needs a direct money injection to ensure it remains sustainable.”
MBAM appealed for Putrajaya not to defer or introduce policies that will increase the cost of doing business in this trying period. – Bernama, May 31, 2021
