The Real Estate and Housing Developers’ Association Malaysia (REHDA) called on the government to enact an all-encompassing force majeure exemption bill that will lawfully safeguard players from all industries, including the property sector.
The country needs a Covid-19 (Temporary Measures) Bill to ensure that every party is protected against any form of penalisation which may be imposed on normal circumstances, reported New Straits Times.
“For instance, in the property sector, buyers are now unable to fulfil their obligations with regards to various processes like completing documentation and progress payment which must be made within 21 days, due to the financial institutions’ scaled down operations in adherence to the MCO,” said REHDA President Datuk Soam Heng Choon.
“Developers are also likely not able to meet their completion deadlines as a result of the Movement Control Order (MCO) which has affected the whole supply chain, thus it will take longer to achieve optimum output from construction activities on site.”
Aside from benefitting developers, financiers, purchasers and other property industry players, REHDA believes that the Bill’s enactment would also prove beneficial to players in other industries that form part of the country’s economic ecosystem, said Soam.
“It will go a long way to protect all parties to any contract from being deemed to be in breach of the contract due to the inability to perform any obligation of the contracts.”
The two-week MCO that started on 18 March that has since been extended to 14 April saw all non-essential activities being halted.
Its enforcement has affected the rakyat’s livelihood in all industries, with many parties unable to deliver on their contractual obligations.
“This unprecedented pandemic outbreak is expected to have long-term effects in all imaginable aspects. As such, we call upon the government to give due consideration to the Bill, to ensure that all Malaysians will not be further burdened unnecessarily,” said Soam.