Construction industry wants Govt to allow one-year grace period to comply with Act 446

KUALA LUMPUR (Feb 26): The construction industry has urged the Government to allow a one-year grace period before enforcing the latest amendments to Act 446 or Workers' Minimum Standards for Housing and Amenities Act 1990.

In a joint statement yesterday, Master Builders Association Malaysia (MBAM) and five contractor companies said this was due to the rising construction costs and standard operating procedure (SOP) compliance costs which caused cash flow problems and financial constraints for the contractors.

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

“Act 446 is also putting 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," said the statement.

The five companies are Persatuan Kontraktor Melayu Malaysia (PKMM), Persatuan Kontraktor Bumiputera Malaysia (PKBM), Persatuan Kontraktor India Malaysia (PKIM), Guild of Bumiputra Contractors Wibawa (GBC Wibawa) and United Malaysia Contractors Association (UMCA).

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