Malaysia’s Total Lockdown: Critical Construction Works Allowed
01 June 2021
As Malaysia approaches the second half of year 2021, it does so under a nationwide lockdown. The Prime Minister’s Office of Malaysia had on 28 May 2021 released an official statement to announce that the country would be undergoing a total lockdown (also referred to as Full Movement Control Order or ‘
FMCO’) from 1 June 2021 until 14 June 2021.
1 The FMCO is reminiscent of the first Movement Control Order that was previously imposed in March 2020, with only essential services and economic sectors allowed to operate during this period.
On 30 May 2021, the Ministry of Works issued an official statement
2 (“
Ministry Statement”) that as part of the effort to curb the alarming COVID-19 infection, all construction works should be suspended during the FMCO. However, critical construction works may be carried out during the FMCO.
WHAT ARE CRITICAL CONSTRUCTION WORKS?
The Ministry Statement has identified the following as being critical construction works:
- Critical Maintenance and Repair Works
Critical maintenance and repair works are works which, if left unattended, could cause danger or harm to workers, members of the public or the environment. Such works comprise:
- Maintenance and repair of slopes, roads, bridges, traffic management control and traffic lights
- Periodic inspection and repair of lifts, travelators, escalators and other critical mechanical and electrical equipment
- Repair, maintenance and upgrading works of premises of essential services
- Maintenance and cleaning works for disposal of stagnant water or pest control fogging at construction sites
- Repair and maintenance of railway tracks such as Mass Rapid Transit, Light Rail Transit, commuter, single or double track, and rail projects
- Repair of personal residences
- Construction of ‘Bailey Bridge’ at locations with collapsed bridges.
- Construction Works for Key Public Infrastructure
- Tunnels and slopes
- Bridges and viaducts
- Highways that are certified as having achieved 80% and above of physical completion
- Public infrastructure such as Mass Rapid Transit, Light Rail Transit, East Coast Rail Line, commuter, single or double track, and rail projects
- Electrical, telecommunications, and oil and gas infrastructure
- Infrastructure in relation to dams, drainage, and sewerage
- Works in relation to hospitals that are certified as having achieved 80% and above of physical completion
- Building construction with complete3 on-site workers’ accommodation
- Professional or consultancy services in relation to construction works listed in sub-paragraphs (i) and (ii) above which have received permission to operate
- Supply chain services in relation to construction works listed in sub-paragraphs (i) and (ii) above which have received permission to operate
CONTRACTORS REQUIRED TO APPLY FOR NEW PERMISSION TO OPERATE
Although the Ministry Statement provides that contractors involved in critical construction works as listed above are required to apply afresh for permission to operate during the FMCO with the Construction Industry Development Board of Malaysia (‘
CIDB’), this no longer applies. Pursuant to the National Security Council’s announcement on 31 May 2021, applications for permission to operate for all economic sectors have to be submitted by way of the Ministry of International Trade and Industry’s Covid-19 Intelligent Management System (CIMS).
4
It is pertinent to note that previous permissions to operate for the earlier Movement Control Orders will no longer be valid. A fresh application will have to be made in order to operate during the FMCO. Once permission to operate is granted, it must be displayed clearly at the relevant premises or construction site.
Contractors will be solely responsible for making the applications for permission to operate, with applications by consultants and suppliers required to be made through the main contractor for their respective project.
CONTROL OF WORKFORCE
Companies carrying out critical construction work and with permission to operate may maintain their normal operating hours. However, workforce capacity is capped at 60%.
In addition, such companies must comply with the following requirements:
- All workers must undergo COVID-19 testing before starting work;
- A Health and Safety Officer must be appointed to enforce compliance with the applicable standard operating procedures on-site;
- The Site Supervisor is to be responsible for ensuring full compliance with standard operating procedures when construction works are being carried out during the FMCO;
- The movement of workers has to be limited to movement between the construction site and Centralised Labour Quarters;
- Transport for movement as well as daily necessities such as food and hygiene items should be provided; and
- No movement of workers between construction sites.
ENFORCEMENT BY CIDB
The Ministry Statement made it clear that if contractors are found to be non-compliant with the applicable standard operating procedure, CIDB as the regulatory body of the construction industry can take action against them. This includes shutting down construction sites, imposing fines, and initiating disciplinary proceedings against the contractor.
COMMENTARY
While the list of critical construction works for FMCO is largely similar to what was allowed under previous Movement Control Orders, it has by this latest order excluded private residential and commercial building projects. Further, there is an increased emphasis on preventive measures by controlling the movement of workers. Given that construction sites have contributed to a number of clusters, it is to be hoped that the measures imposed will help minimise the risk of infection.
Please contact Richard Khoo (Partner) or Rachel Chiah (Senior Associate) if you have any queries relating to this Alert.
1 The Prime Minister’s Office’s official statement on the total lockdown is available
here, in the Malay language.
2 The Ministry of Works’ official statement on critical construction works is available
here, in the Malay language.
3 The workers’ accommodation should be in compliance with the requirements under the Employees’ Minimum Standards of Housing Accommodations and Amenities Act 1990.