President Message January 2022

JANUARY 2022 PRESIDENT WEBSITE MESSAGE

In this brand new year, I would like to take this opportunity to wish all MBAM Members a great New Year ahead. Thank you so much for supporting us in 2021 and we are looking forward to serving you better in 2022!

This past year has been one for the books and let us recap on some of the highlights for year 2021. Early last year, the nation went into the state of Movement Control Order (MCO) for the second time since the start of the COVID-19 pandemic in early 2020. Since mid-January 2021, we went through various lockdown orders up until end June 2021 and the Malaysian construction industry was impacted with total stop work order for most of the period and faced low productivity rate. On 16 August 2021, construction industry was allowed to resume operations but capacity was based on workers’ vaccination rate. As we moved along, restrictions were eased and most industries including construction were recommencing works in full capacity toward the end of 2021.

Budget 2022: What was in it for Construction?

MBAM thanked the Government for some of the construction projects announced during the Budget 2022 Tabulated on 29 October 2021. Most of the projects announced are the smaller scale projects to enhance the infrastructure for public use. These small projects would benefit part of the industry players mainly in the G1 to G4 categories of contractors.

Besides that, there are also some continuation of some existing projects such as the continuation of implementation of national infrastructure development projects worth RM 3.5 billion including the construction of the Pan Borneo Highway and Central Spine Road, and allocation of RM 2.9 billion for continuation of small and medium sized projects for G1 to G4 contractors nationwide for road maintenance projects, repair of obsolete infrastructure and equipment of public universities, polytechnics and community colleges as well as other projects involving social amenities in rural areas.

Government to Intervene in Managing the Increase of Building Materials Prices

With the uptrend of building materials prices in the last quarter of 2021, MBAM together with six other Associations in the building and construction industry jointly issued a press statement to address some of industry players’ concerns and provided proposals to the Government in managing the increase of building materials prices.

Extension of COVID Act 829 (Part II)

Part II (Inability to Perform Contractual Obligations) of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 Act (Covid-19) (Act 829), which ended on 31 December 2021, has been extended until October 2022. Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Dr Wan Junaidi Tuanku Jaafar said this is pursuant to Subsection 5 (2) of Act 829, where a minister may by order published in the gazette extend the effective period of Part II, but the extension shall not exceed the effective period of Act 829. Wan Junaidi in a statement on 30 December 2021 said the extension was approved by the Cabinet on 22 December 2021. However, there is still no mention of cost sharing and specific treatment of Extension of Time (EOT). MBAM hopes this can be addressed soon.

Lastly, we have some exciting plans in the works for year 2022 and we look forward for your continuous support. Whatever the New Year has in store, we will be in it together. Cheers to more shared successes in the New Year!

 

Tan Sri Sufri Hj Mhd Zin PSM, SSAP, DPTJ

President, MBAM

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