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.
Download MBAM Circular click here
Download Letter from MOF click here