ALLOW automatic loan moratorium extension for people and businesses, and provide financial assistance with low interest financing rates to provide financial aid to businesses, said Master Builders Association Malaysia (MBAM). 

While many contractors are in dire states due to various additional costs arising from the Covid-19 pandemic, MBAM executive director Loh Mei Ling suggested these were among initiatives Putrajaya can come up with in order to help the people. 

“Tax break for businesses and provide utilities subsidies throughout the total lockdown period and wage subsidy programme for all employees with a salary of RM4,000 and below. 

“Speedy payment for government projects to be made especially for the month of May 2021 at all tiers to ease cash flow of the construction industry,” she said in a statement. 

She also suggested a waiver of levy for foreign workers renewing their work permits and extension of permit approval for those stuck in their countries of origin and unable to enter during lockdown. 

She added that there must be an extension of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 to protect contractors and to expressly state the provision for extension of time and cost sharing between contracting parties. 

“Contractors should also be allowed to ask for compensation from project owners,” she said. 

On Friday, Muhyiddin announced a full lockdown from June 1 to 14. 

During this period, social and economic activities are barred while only essential services are allowed to operate. 

The number of daily Covid-19 infections has averaged more than 8,000 cases per day in the last week. 

Loh said that the six weeks total lockdown across two phases will cause problems to contractors, with the industry facing shortages of contractors, leading to overall price escalation. 

“In reality, the Malaysian construction industry would need direct money injection into businesses immediately as an effective measure to ensure our industry is sustainable. 

“We hope the government will defer and not introduce any other new policies during this trying period that will further increase the cost of doing business,“ she stated. – May 31, 2021.