Only 16 per cent applications to operate during MCO 3.0 are approved by CIDB

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Kuala Lumpur, 16 June 2021 – Construction Industry Development Board Malaysia (CIDB) approved only 16 per cent, or 11,939 out of 74,200 operating permission applications received through the MITI CIMS system since the beginning of Movement Control Order (MCO) 3.0, from 1 to 14 June 2021.

CIDB Malaysia CEO, Datuk Ir Ahmad ‘Asri Abdul Hamid said the approval requirements are strict to ensure that only critical construction projects adhering to the stringent safety measures are allowed to operate. “In addition to the strict approval requirements, CIDB also intensifies inspections to ensure that no construction sites operate without an approval letter,” he said.

CIDB has established a special task force called MITI CIMS (The Ministry of International Trade and Industry COVID-19 Intelligent Management System) to process applications. From 1-14 June 2021 the number applications received reached 74,200, both new and appeal applications, with details as follows:

  • 58,778 were new and 15,422 were appeal applications;
  • 93 per cent of all applications (55,153 new applications and 13,922 appeal applications) have been processed;
  • 86 per cent of the total new applications processed (47,243) were not approved and only 14 per cent (7,910) applications were approved;
  • 71 per cent of the total appeals processed (13,922), 71 per cent (9,893) were not approved, and only 29 per cent (4,029) were approved.

Among the reasons why applications are not approved is because the projects are not critical. Also, some applications did not specify the name of the construction project in the CIDB CIMS system. CIDB urges construction industry players from all levels to comply with all permit application conditions. Any sites found operating without a valid authorisation will be ordered to shut down. Any contractors who breach the provisions of Act 520 and or any other written law including Act 342 (Prevention Act and Infectious Disease Control 1988) and Act 446 (Minimum Standards Act Housing and Employee Facilities 1990), if convicted, will be penalised of up to RM500,000.00 and the Contractor Registration Certificate may be suspended or revoked.

– Construction+ Online

Source: CIDB