Construction Firms Appeal For One-Year Grace Period On Act 446 Compliance

February 26, 2021

Construction players have sought a one-year grace period for them to comply with the amendments to the Workers’ Minimum Standards for Housing and Amenities Act 1990 (Act 446).

This comes as the rising construction costs, as well as the standard operating procedure (SOPs) and compliance costs, had caused financial constraints and cash flow problems for the contractors, said the Master Builders Association Malaysia and five contractor companies in a joint statement.

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The five companies are Persatuan Kontraktor India Malaysia, Persatuan Kontraktor Melayu Malaysia, Persatuan Kontraktor Bumiputera Malaysia, United Malaysia Contractors Association and Guild of Bumiputra Contractors Wibawa, reported Bernama.

“There is a need for sufficient time for the industry to recover,” they said in the statement.

“While we commend the initiative to provide a conducive living space for workers, the amendments to Act 446 which were gazetted on 17 February 2021 as part of the Emergency Ordinance took place at a rather inaccurate time while taking into account the unfavourable economic situation.”

They added that Act 446 also puts contractors in a “dark tunnel as the delegation of enforcement powers under the Emergency Ordinance could face the potential of misinterpretation of law due to the lack of understanding by the many different authorities”.

 

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