KUALA LUMPUR: Contractors have cautiously welcomed the government’s decision allowing several critical sectors, including construction and related services, to resume operations during the Movement Control Order (MCO).
While the move brought relief to contractors, especially those in Grade G1 and G2 categories, they are worried that the damage to the construction sector would worsen if no measures are taken.
Malaysian Bumiputera Contractors Association president Datuk Azman Yusoff said the MCO had caused 10 per cent of 40,000 G1 and G2 Bumiputera contractors to go bankrupt.
“This is mostly due to insufficient cash flow and improper planning since they operated on a kais pagi makan pagi, kais petang makan petang (hand-to-mouth) basis.
“The association is grateful for the announcement by the prime minister on the additional RM10 billion allocation for the Prihatin Rakyat Economic Stimulus Package to help small- and medium enterprises, since most Bumiputera contractors fall under this category.
“The allocation will allow several sectors, such as construction and construction-related services, including projects with G1 and G2 contractors as the main contractors, to resume operations.
“This is a relief to many of us,” he told the New Sunday Times.
Prime Minister Tan Sri Muhyiddin Yassin had said several sectors would be allowed to resume operations in stages under strict guidelines during the third phase of the MCO from April 15 to 28.
Azman said: “Although we are worried about our businesses, we are also concerned about the safety of people if measures are not implemented to contain the spread of Covid-19.
“I urge contractors who have been given the green light to resume operations to cooperate with the authorities by complying with health guidelines.
“This includes investing in health equipment to ensure construction workers will not be exposed to infection.
“We must also play our role in the fight against this pandemic.”
He said he was hopeful that the government would extend the exemption given to G1 and G2 contractors to those in G3, G4 and G5 categories, whose projects were almost 70 per cent complete.
“Most of these contractors (in G3, G4 and G5 categories) have machinery and building materials on the construction site.
“We fear that if the situation prolongs, the machinery and materials would be damaged and contractors would incur losses.
“We hope the government will allow them to resume operations in stages under strict guidelines like their counterparts in G1 and G2 categories.”
Bank Negara had predicted that the pandemic would cause the unemployment rate to go up to four per cent, involving more than 600,000 people.
But the Malaysian Employers Federation said it believed the unemployment rate could be far higher after taking into account the grim prospect of half a million new employees entering the labour market, coupled with the existing figure of 500,000 unemployed people, as well as existing employees losing their jobs.