KUALA LUMPUR, Aug 19 — The Master Builders Association Malaysia (MBAM) has today urged the government to delay the implementation of the Employment (Amendment) Act 2022 which is slated to take effect on September 1.

MBAM said the construction industry is unprepared for the additional cost the amendments will bring as they are still dealing with uncertain liabilities resulting from the Covid-19 pandemic.

"Despite operating at full force during the country’s transition to an endemic phase, manpower challenges have hampered the industry’s recovery process,

"The construction industry is dealing with a severe shortage of workers where all jobs are already delayed in progress,” the president of MBAM Oliver Wee said in a statement here.

He added that the new minimum wage of RM1,500 will also be detrimental to the industry as additional costs when the government did not provide a satisfactory post-pandemic economic recovery plan.

"In light of this, we appeal to the government to provide more time for contractors to prepare for the changes being enforced through the Employment Act,

"It is vital for the amendments to be enforced at a later period to avoid any further additional costs,” said Wee.

The Employment (Amendment) Act 2022 that was gazetted earlier this year allowed workers to apply for Flexible Working Arrangements (FWA), reduced working hours from 48 hours to 45 hours, increased the overtime costs for employees with wages up to RM4,000 per month, increased maternity leave from 60 days to 98 days and paternity leave to seven continuous days per birth, and raised the national monthly minimum wage from RM1,200 to RM1,500.

According to a report by The Edge, the Malaysian Employers Federation (MEF) had also urged the government to delay the implementation of the said amendment yesterday, saying it will cost Malaysia’s employers an extra RM110.99 billion each year.