PETALING JAYA: The financial assistance announced under the National People's Well-being and Economic Recovery Package (Pemulih) will be beneficial to the construction sector, says Datuk Seri Fadillah Yusof.

       The Works Minister said the sector has been badly affected by restrictions to stem the spread of Covid-19

       In welcoming the announcements under Pemulih, Fadillah said the assistance will definitely alleviate the financial burden of the construction sector given the recent rise in construction materials due to the pandemic.

       "It will also help the B40 group in that sector," he said in a statement on Tuesday (June 29).

       Under Pemulih, Fadillah said there will be allowances of price changes or variation of price (VOP) for government projects until Dec 31 this year, following the rise in building materials prices.

       He also pointed out that assistance will be provided to local contractors with grades G1 to G4, where small scale projects are allowed to be carried out by conducting lottery and tendering processes.

       Fadillah also said that under Pemulih, it will allow the extension of contracts and the extension of time on government projects for supply and service contracts affected by the MCO subject to contract clauses.

       By giving allowances in price changes of VOP, Fadillah said Pemulih will be beneficial to contractors affected by the rise in raw materials.

       "Because the rise in raw material prices will impact the finances of contractors," he added.

       Fadillah said that the assistance rendered to G1 to G4 local contractors in carrying out small scale projects through a lottery or tender will allow contractors to carry out their projects more effectively because they will be earning a comfortable margin from their respective projects.

       He also said the EOT given to projects under Pemulih will enable contractors to reschedule their respective works in order to ensure that their project will be completed within their respective timeframes.

       "If the projects were to be halted, the government will have to bear losses incurred, which will be higher due to the time taken to appoint a new contractor and their new prices are always higher than the previous contractor."

       Fadillah also welcomed the RM300,000 allocation to every MP to carry out a "food basket programme" in their respective constituents, saying that government assistance will be rendered easily to most Malaysians who were affected by the Covid-19 pandemic.

       "Allocations which were given without taking into account political affiliations proved that the government of the day is committed to ensuring that the welfare of Malaysians is prioritised without taking into account political beliefs and backgrounds," he added.