THE Real Estate and Housing Developers’ Association (Rehda) Malaysia and Master Builders’ Association Malaysia (MBAM) are appealing to the government to bear the full cost of Covid-19 screening for all workers so the construction industry can be up and running again.

Rehda president Soam Heng Choon and MBAM secretary-general Eric Yong in a joint statement said at current market rate, the estimated cost per swab test is around RM350 to RM650 per person (depending on volume).

“The high cost per person translates to a considerable amount that contractors need to bear, as a construction site typically has hundreds of workers, thus incurring a heavy cost to construction companies on top of all the other mobilisation costs, as well as losses since the start of the movement-control order (MCO) on March 18.

“The virus outbreak and its severity is unexpected, and it is beyond the financial capacity of contractors to bear the cost, especially when contractors are already financially affected by the pandemic.

“Another area of concern that they hope the government can look immediately into is the capacity and speed of results for the testing of Covid-19 for all construction workers,” they said.

They also hope the government can quickly look into alternatives such as rapid test kits which are faster, cheaper and readily available in order to accommodate the large volume of workers, with the PCR swab test carried out only if there is an outbreak within the site or carried out intermittently and selectively.

In addition, if it is found that contractors have failed to implement guidelines issued by the Construction Industry Development Board (CIDB) and caused an outbreak of Covid-19 at their sites, they shall be responsible for all costs in resolving the outbreak.

Secondly, MBAM strongly echoes Rehda’s call for a Force Majeure Bill or a legislative intervention, similar to those that have already been introduced in other countries including Australia, Ireland, Scotland, Hungary, the United Kingdom (UK Coronavirus Act) and Singapore (Covid-19 (Temporary Measures) Act).

“This bill will statutorily protect all contracting parties from unnecessary litigation and provide temporary relief for businesses and individuals who are unable to meet their contractual obligations during this period, which is beyond any parties’ control,” they said.

Essential provisions to include are: to have a retrospective effect from February 2020; and a moratorium (with a defined period) from actions for inability to perform e.g. up to the end of the year. 

“This moratorium should also include a bar from commencing and continuing legal proceedings, including enforcing any security, taking any insolvency-related measures or steps, commencing any execution, distress, eviction or repossession actions, and enforcing any judgements, awards and determination,” they said.

Another essential provision is temporary relief for companies and individuals in facing financial difficulties; relief from the happenings or events that have arisen during the MCO; for the property industry, it should cover construction and supply contracts; any call on performance bond to be prohibited during the moratorium period; and protection for directors from personal liability for any trading carried out during the moratorium period despite their companies being insolvent.

“We request for the government to table the bill during the upcoming Parliament seating on May 18 on an urgent basis as this temporary measure is most crucial during this period to effectively protect all stakeholders including developers, builders and purchasers,” they added. – Bernama, May 6, 2020.