Introduction

Malaysia is approaching the second half of 2021 under a nationwide lockdown. On 28 May 2021 the Prime Minister's Office announced that the country would go into a total lockdown (referred to as a "full movement control order" or "FMCO") from 1 June 2021 to 14 June 2021.(1) The FMCO is reminiscent of the first Movement Control Order, 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 a statement(2) (Ministry Statement) proclaiming that, to help curb the alarming rise in the covid-19 infection rate, construction works should be suspended for the duration of the FMCO. However, critical construction works may still be carried out.

Eligible construction works

The Ministry Statement has identified the following as being critical construction works.

Critical maintenance and repair Critical maintenance and repair works are works that, left unattended, could endanger or harm workers, members of the public or the environment. These 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 other rail projects;
  • repair of personal residences; and
  • construction of Bailey bridges at locations with collapsed bridges.

Key public infrastructure construction Construction works for key public infrastructure can continue under the FMCO, including works for:

  • tunnels and slopes;
  • bridges and viaducts;
  • highways certified as being at least 80% physically complete;
  • public transport infrastructure such as mass rapid transit, light rail transit, East Coast rail line, commuter, single or double track and other rail projects;
  • electrical, telecoms and oil and gas infrastructure;
  • infrastructure in relation to dams, drainage and sewerage;
  • works in relation to hospitals certified as being at least 80% physically complete; and
  • building construction with complete onsite workers' accommodation.(3)

In addition, professional or consultancy services and supply chain services in relation to the above critical construction works that have received permission to operate may continue during the lockdown.

Permission to operate

The Ministry Statement had provided that contractors involved in critical construction works needed to reapply for permission to operate from the Construction Industry Development Board of Malaysia (CIDB) while the FMCO was in force. However, following the National Security Council's announcement on 31 May 2021, applications for permission to operate for all economic sectors must be submitted through the Ministry of International Trade and Industry's Covid-19 Intelligent Management System.(4)

Previous permissions to operate during an FMCO are no longer valid. A fresh application must be made. Once permission is granted, it must be displayed clearly at the relevant premises or construction site.

Contractors will be solely responsible for making applications for permission to operate, including applications for their consultants and suppliers.

Workforce controls

Companies carrying out critical construction work and with permission to operate may maintain 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 must ensure full compliance with standard operating procedures for the duration of the FMCO.
  • The movement of workers must be limited to movement between the construction site and centralised labour quarters.
  • Transport for movement and daily necessities such as food and hygiene items should be provided.
  • Movement of workers between construction sites is prohibited.

Enforcement

The Ministry Statement made it clear that if contractors fail to comply with standard operating procedures, the CIDB can take action against them. This includes shutting down construction sites, imposing fines and initiating disciplinary proceedings against the contractor.

Comment

While the list of critical construction works for the current FMCO is largely similar to what was allowed under previous movement control orders, the latest order excludes private residential and commercial building projects. Further, there is an increased emphasis on preventing the spread of infection by controlling the movement of workers. Given that construction sites have contributed to several covid-19 clusters, it is hoped that the measures will help to minimise the risk of infection.

For further information on this topic please contact Richard Khoo Boo Hin or Rachel Chiah at SKRINE by telephone (+60 3 2081 3999) or email ([email protected] or [email protected]). The SKRINE website can be accessed at www.skrine.com.

Endnotes

(1) Prime Minister's Office official statement, 28 May 2021, available in Malay here.

(2) Ministry of Works official statement on critical construction works, available in Malay here.

(3) Workers' accommodation should comply with the requirements under the Employees' Minimum Standards of Housing Accommodations and Amenities Act 1990.

(4) The Edge Markets, 'One stop centre set up to issue essential services operation permit, says MKN', 1 June 2021, available here.