October 11 2021

Covid-19: operating capacity of non-essential activities in construction industry have been clarified

SKRINE | Projects, Construction & Infrastructure - Malaysia

Tan Wei Liang

Introduction
SOPs for states under second phase
SOPs for states and federal territories under third phase


Introduction

On 15 August 2021 former Prime Minister Tan Sri Muhyiddin Yassin(1) announced that, under the National Recovery Plan (NRP),(2) non-essential activities in various industries, including construction, are allowed to resume operations. However, the operating capacity of such activities is subject to the percentage of the workforce that has been fully vaccinated against covid-19.

Tan Sri Muhyiddin explained that the operating capacity will be calculated as follows:

  • If 40-59% of the workforce has been fully vaccinated, the business can operate at 60% capacity.
  • If 60-79% of the workforce has been fully vaccinated, the business can operate at 80% capacity.
  • If 80-100% of the workforce has been fully vaccinated, the business can operate at 100% capacity.

On 16 August 2021 the standard operating procedures (SOPs) of the NRP were revised to reflect and to clarify the operating capacity of the aforementioned non-essential activities.

As of 6 October 2021, all states and federal terrirtories in Malaysia have transitioned from the first phase of the NRP to subsequent phases.

SOPs for states under second phase

The operating capacity of non-essential activities in the construction industry in states under the second phase of the NRP are as follows:

  • If 40% of the workforce has been fully vaccinated, the business can operate at 60% capacity.
  • If 60% of the workforce has been fully vaccinated, the business can operate at 80% capacity.
  • If 80% of the workforce has been fully vaccinated, the business can operate at 100% capacity.

As of 6 October 2021, the following states are still under the second phase of the NRP:

  • Kelantan;
  • Perak;
  • Pulau Pinang;
  • Sabah;
  • Johor; and
  • Kedah.(3)

SOPs for states and federal territories under third phase

The operating capacity of non-essential activities in the construction industry in states and federal territories under the third phase of the NRP are as follows:

  • If less than 80% of the workforce has been fully vaccinated, the business can operate at 80% capacity.
  • If more than 80% of the workforce has been fully vaccinated, the business can operate at 100% capacity.

As of 6 October 2021, the following states and federal territories have transitioned to the third phase of the NRP:

  • Perlis;
  • Sarawak;
  • Terengganu;
  • Pahang;
  • Melaka;
  • Selangor;
  • Kuala Lumpur; and
  • Putrajaya.(4)

For further information on this topic please contact Tan Wei Liang or Tai Kean Lynn 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) On 16 August 2021 Tan Sri Muhyiddin resigned as prime minister. The current prime minister is Dato' Sri Ismail Sabri Bin Yaakob.

(2) On 15 June 2021 Tan Sri Muhyiddin unveiled the four-phase NRP, whereby movement control measures have been gradually eased as Malaysia moves from one phase to the next. The key threshold indicators for the four phases are:

  • the covid-19 infection rate in the community;
  • the capacity of the public healthcare system; and
  • the vaccination rate.

(3) The SOPs for states under the second phase can be accessed here (in Malay).

(4) The SOPs for states and federal territories under the third phase can be accessed here (in Malay).