Margarita M. Phillips 
Raw material prices skyrocket as contractors face work delays due to insufficient numbers of workers, strict SOPs and the huge cost of swab testing
by AFIQ AZIZ / Photo by TMR FILE PIX
MANY construction players can no longer absorb the impact of the Movement Control Order (MCO), now entering Full Lockdown (MCO 3.0), and are at risk of shutting down while allowed to operate minimally during the period.
The Master Builders Association Malaysia (MBAM), which represents 17,000 members, said many entrepreneurs were already in dire straits due to various additional costs since the Covid-19 outbreak last year.
MMFA ED Loh Mei Ling said raw material prices have soared, including high prices for steel bar and copper, as contractors face work delays due to insufficient supply.smart workers, strict Covid-19 standard operating procedures (SOPs), and the enormous cost of swab testing, which have pushed all construction companies to the limit.
While critical maintenance, repair work and critical construction work for major public infrastructurethe structure is allowed to operate during full lockdown, she said these costs were not factored into the cost of the project.
“We have bit the bullet to make sure projects can still be completed on time and to provide job security for many industry workers.
“With the total of six weeks lockdown in two phases and potentially longer, many contractors can no longer absorb the additional costs and could fall back, â€Loh said yesterday in a statement.
In the short to medium term, she said the sector would face a shortage of subcontractors, which would drive up prices overall.
MMFA has proposed several measures to be included in a new stimulus package expected to be announced by the government to ease the financial burden on entrepreneurs.
Loh said that an automatic extension of the loan moratorium is a must for individuals and businesses from June 1, 2021.
She added that financial assistance and low interest rate financing should be provided to businesses.
MMFA also called for tax relief for subsidies to businesses and utilities throughout the lock-in period and a wage subsidy. program for all employees whose salary bracket is less than or equal to RM 4000. “The association also proposed a rapid payment of government projects to be carried out, in particular for the month of May 2021, at all levels in order to facilitate the construction cash flow. industry, â€Loh said.
She also proposed the extension of the 2020 law on temporary measures to reduce the impact of coronavirus disease 2019 (Covid-19), considered insufficient to protect businesses.
“The Covid-19 bill must also protect contractors and expressly state the provision for extension of time and cost sharing between contracting parties. Contractors should also be allowed to demand compensation from owners, â€she added.
Prime Minister Tan Sri Muhyiddin Yassin last Friday said the finance ministry would present the latest stimulus packages to cushion the impact of the AGC, following a full lockdown starting today through June 14. for the first phase.
