Extend VOP and EOT to private sector too, says MBAM

Petaling Jaya (June 29): Master Builders Association Malaysia (MBAM) hopes that the government can extend some of the incentives announced in the PEMULIH stimulus package to the private sector.

According to MBAM President Tan Sri Sufri Hj Mhd Zin (pictured) in a statement, this includes the allowance of price changes, or Variation of Price (VOP), for government projects, and the allowance of Extension of Time (EOT) on government projects for supply and service contracts affected by the implementation of the Movement Control Order.

“However, MBAM is in the view that the VOP and EOT should also be applied to projects in the private sector,” Sufri said in the statement on June 29.

He added that the VOP facility cannot be utilised by the majority of the construction contractors, as the VOP will only help if contractors can start work.

“Based on the recent statistics shared by the Construction Industry Development Board Malaysia, since the implementation of MCO 3.0, out of the total inspected construction sites, only 19% were found to be operational,” Sufri said.

Meanwhile, Sufri said MBAM hopes the six-month moratorium could be extended beyond individual borrowers from B40, M40 or T20 group, and micro-entrepreneurs.

“The same moratorium extension should also be given to companies as businesses have been adversely impacted by the pandemic too,” he said.

He added that most measures in the PEMULIH stimulus package are beneficial to the mass public, but not for businesses or companies at large.

“The stark reality is that the construction industry will need money to be injected directly into businesses immediately as an effective measure to ensure our construction industry is sustainable.”

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