PETALING JAYA (March 30): A total of 75% of developers are seeing declining work efficiency due to the Covid-19 pandemic, thus impacting their construction progress of existing developments, a survey by Real Estate and Housing Developers Association Malaysia (Rehda) Malaysia showed.
Rehda president Datuk Soam Heng Choon said the movement control order (MCO) and post-MCO Standard Operating Procedures (SOPs) have slowed down the overall construction progress — causing some delays in the resumption of operations.
“The mandatory testing for on-site workers and some construction sites which have infection clusters were forced to halt operation for ten or 14 days, these have affected the construction progress,” he noted in a media briefing today.
Soam unveiled the findings of Rehda’s “Property Industry Survey 2H2020 and Market Outlook (1H2021 and 2H2021)” at the briefing today.
The survey also revealed that 81% of the respondents said they are facing cash flow problems, with the majority of them (82%) having difficulties in paying their human resource and management expenses.
A total of 78% foresee their reinvestment plans in land banking and future projects being badly hit.
The survey, which was conducted from Oct 12 to Oct 30, 2020, garnered feedback from 121 Rehda members.
The majority of respondents (94%) said they have suffered from declining business activities and 88% saw their profit drop 40% to 44%, as compared to 2019.
In cost management during crisis time, 35% of the respondents are planning to impose pay cuts to reduce business cost, while 65% are choosing alternative ways to save cost, such as freezing new recruitment, no staff increment and bonus and reducing other expenses such as marketing.