Thursday 28 Mar 2024
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This article first appeared in The Edge Malaysia Weekly on May 11, 2020 - May 17, 2020

CONSTRUCTION companies are eager to get back to work after seven weeks of inactivity but are uncertain as to how they will meet Putrajaya’s requirement that the sector’s estimated 1.3 million workers be tested for Covid-19.

Given the current testing capacity of around 20,000 tests a day, some estimate it will take six months to a year to complete examining all the workers.

“My question is, is it really a good idea to require all foreign, as well as local, workers at construction sites to be tested?” asks Datuk Seri Eric Kuan, group executive director of Fajarbaru Builder Group Bhd.

“The current backlog in testing capacity is already causing further delays in commencing construction work and this will result in an economic impact on the country as well,” he says in response to The Edge’s request for comments.

Losses for the sector are estimated at hundreds of millions of ringgit, owing to the shutdown of construction sites over the seven weeks up to May 4, when the Movement Control Order (MCO) was relaxed. The tab will continue to run if the companies are forced to wait out a further extended period before resuming operations.

To expedite the testing process, some companies have resorted to premium services, which means paying up to RM700 per worker instead of the RM250 to RM340 normally charged.

In theory, workers can be tested for free at BP Healthcare outlets throughout the country. Employers have all but discounted the option as unfeasible, however, because of the lack of testing facilities at these outlets and the overwhelming number of workers who have to be tested.

BP Healthcare is the appointed laboratory for Covid-19 testing under Pertubuhan Keselamatan Sosial’s (Perkeso) Program Saringan Prihatin, which allows workers registered with the organisation to get tested for free.

Workers are required to set an appointment at any BP Healthcare outlet — but there is a catch.

As millions are reportedly trying to get an appointment, there are no available slots at all its outlets until May 21, according to the Doctor2U website. The website also says BP Healthcare is operating with limited viral transport media (VTM) and test kits.

Fajarbaru’s Kuan suggests a compromise, given the circumstances.

“As MBAM (Masters Builders Association Malaysia) has mentioned, it will take between four and eight months to completely test all foreign construction workers.

“If this is the case, the government would have to either find solutions to drastically increase testing capacity or allow some sites in green or even yellow zones to begin work while waiting for Covid-19 screening,” he proposes.

Crest Builder Holdings Bhd managing director Eric Yong Shang Mings estimates that it will cost RM400,000 to get all of the company’s workers tested.

“On my side, we’re paying premium a bit, so we have obtained some early appointments. Perhaps by the end of next week [we will get everyone tested],” he says in a text message to The Edge.

The cost of the test adds on to the expenses the sector already has to shoulder.

Crest Builder had paid workers their full salary — estimated at RM2 million a month in total — even during the MCO. Yong reckons that if the company needs to wait another two weeks before resuming full operations, it will incur about RM4 million in redundant salary costs.

On top of salaries, he estimated that overhead costs come up to RM1 million a month, apart from the hire purchase interest charges and rent of machinery.

At the same time, the group has lost RM30 million to RM40 million a month in revenue during the MCO.

Fluctuating prices for the pandemic tests are another niggling issue, according to some executives.

Inta Bina Group Bhd managing director Paul Lim Ooi Joo says prices have rocketed. “It is astonishing that there is a 31% difference in the price we paid between the first and second rounds of the Covid-19 tests.

“It would be helpful if the government can subsidise the testing costs for companies that have taken, and are taking, proactive measures, as well as regularising the charges of Covid-19 tests to ensure that there are no profiteering practices,” Lim says in an email reply to The Edge.

Construction executives feel like they are caught between a rock and a hard place. If they do not get their workers tested immediately, it will lead to further delays in restarting their operations and greater financial losses.

As it is almost impossible to get a slot for free tests at BP Healthcare outlets, however, they are forced to pay significantly more to get the tests done by other service providers. They say some government assistance would be handy.

“We have lost RM40 million to RM50 million in revenue during the MCO period. And yet, we are doing our small part to help the country revive the economy by funding the tests ourselves to kick start and expedite the construction of our projects,” says Lim.

“It would be helpful if the government can take pre-emptive measures to lower tax rates to help all the businesses pull through in this tough environment.”

 

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