Introduction
Types of construction works allowed
Workforce capacity and vaccination rate
Operating hours
Movement of workers between sites
All consultancy services allowed to operate
Comment
Following the Malaysian government's announcement of the National Recovery Plan, which is intended to be the country's exit strategy in relation to the covid-19 pandemic, the Construction Industry Development Board of Malaysia (CIDB) published the standard operating procedure (SOP) for the construction industry. The SOP varies depending on the phase of the National Recovery Plan under which a state is categorised.
This article outlines and compares the key aspects of the SOP for the construction industry for phases one to three of the National Recovery Plan. Aside from the key aspects set out in this article, the on-site protocols with respect to the sanitisation of common areas, movement of workers and social-distancing measures are reflective of the previous requirements imposed during the movement control orders(1) and apply to all three phases.
Types of construction works allowed
The types of construction works that are allowed in each phase are set out below. It is pertinent to note that in order to operate in states categorised under phase one or phase two, contractors are required to apply for approval from the Ministry of International Trade and Industry (MITI).
Phase one
The following types of construction works are allowed in phase one:
- critical maintenance and repair works that, if left unattended, could cause danger or harm to workers, members of the public or the environment;
- public infrastructure or government-funded projects;
- construction works with approved on-site workers' accommodation or centralised labour quarters;
- construction works carried out by grade one, grade two, grade three or grade four registered contractors;
- construction works on hospitals with certified physical progress of 80% and above;
- renovation works for personal residences;
- soil investigation works;
- professional, consultancy or supply-chain services in relation to the above works; and
- any construction works that are not listed above, but where the requisite vaccination rate of employees has been achieved (see below).
Phase two
The following types of construction works are allowed in phase two:
- any maintenance and repair works;
- public infrastructure or government-funded projects;
- construction works with approved on-site workers' accommodation or centralised labour quarters;
- construction works carried out by grade one, grade two, grade three or grade four registered contractors;
- highways or roadworks;
- construction works on hospitals with certified physical progress of 80% and above;
- soil investigation works;
- renovation works for personal residences or buildings;
- site preparatory works such as setting out, site clearing and earthworks;
- professional, consultancy or supply-chain services in relation to the above works; and
- any construction works that are not listed above, but where the requisite vaccination rate of employees has been achieved (see below).
Phase three
All types of construction works are allowed in phase three.
Workforce capacity and vaccination rate
The percentage of workforce capacity allowed under each phase of the National Recovery Plan is as follows:
- phase one – 60%;
- phase two – 80%; and
- phase three – 100%.
That being said, workforce capacity may be increased subject to:
- the percentage of employees that are fully vaccinated,(2) the range of which is as follows:
- 80-100% vaccination rate – 100% workforce capacity;
- 60-79% vaccination rate – 80% workforce capacity; and
- 40-59% vaccination rate – 60% workforce capacity;
- the rapid test kit antigen test, which must be conducted on employees every two weeks, at the employer's own cost.
Contractors should be mindful that they are required to declare the percentage of employees that are fully vaccinated through the MITI's online covid-19 intelligent management system (CIMS).
Operating hours
Companies are allowed to maintain their standard operating hours regardless of the phase of the National Recovery Plan in which their applicable state is categorised. However, this is subject to conditions that may be imposed by the local authority.
Movement of workers between sites
Workers are not allowed to move between sites for construction works located in states categorised under phase one or phase two. For states categorised under phase three, workers are allowed to move between sites provided that they undergo covid-19 testing three days prior to entering the new site.(3)
All consultancy services allowed to operate
In addition to the above, the CIDB has announced that all consultancy services located in states categorised under phase one or phase two of the National Recovery Plan are allowed to operate with effect from 24 August 2021.(4) Consultants are required to apply for approval to operate through the MITI's CIMS.
In applying for approval, consultants will need to select any of the following sectors:
- sector 27 – professional or consultancy services in relation to works that are allowed;
- sector 32 – office operations; or
- sector 33 – other works or activities not listed in sectors one to 32. If sector 33 is selected, consultants will be allowed to operate only based on the declared vaccination rate of their employees.
Consultancy services operating are also bound by the SOP for the construction industry as described above.
Comment
The gradual resumption of operations in the construction industry will no doubt be welcome news to developers, contractors and consultants. However, with new daily covid-19 cases still hovering at around 20,000, companies will have to exercise a great deal of caution and comply fully with the SOP in order to maintain the fragile balance between business and health.
For further information on this topic please contact Rachel Chiah at SKRINE by telephone (+60 3 2081 3999) or email ([email protected]). The SKRINE website can be accessed at www.skrine.com.
Endnotes
(1) A summary of the applicable on-site protocols and requirements for construction works is available here.
(2) "Fully vaccinated" means an individual has received two doses of vaccination and 14 days has passed since the date of their second dose (for Pfizer, AstraZeneca and Sinovac vaccinations) or an individual has received their single dose of vaccination and 28 days has passed since the date of this dose (for Johnson & Johnson and CanSino vaccinations).
(3) The announcement posted on CIDB's official Twitter account on 1 September 2021 is available here.
(4) The full text of the CIDB's announcement on consultancy services is available here.