NOTIFICATION FROM MINISTRY OF FINANCE (MOF) ON ADVANCE PAYMENT

NOTIFICATION FROM MINISTRY OF FINANCE (MOF) ON ADVANCE PAYMENT

We are pleased to inform that the MOF has given special consideration following our appeal (Ref: MBAM/16/02/01/2020/05/14/155) on the above matter dated 14th May 2020.

The MOF has agreed for special consideration due to the impact of the COVID-19 pandemic and the Movement Control Order (MCO) as follows:

  • Reduction for Advance Payment from Progress Payment at 50% of Physical Progress;
  • The reduction of Advance Payment from Progress Payment must be completed at 85% of physical progress; and that
  • This special provision will be in effect from 15th June 2020 to 31st December 2021.

Please refer to Treasury circular PP/PK2.2 that can be accessed via MOF website: www.treasury.gov.my.

It is hoped that this special provision will help contractors to improve their cash flow.

 

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