No amount limit for construction disputes at Covid-19 Mediation Centre, says Wan Junaidi

KUALA LUMPUR: The government has agreed that the amount in disputes under the construction sector under the Covid-19 Mediation Centre (PMC-19) that was previously set a a ceiling of RM500,000.00 be changed to without limit.

Minister in Prime Minister’s Department (Parliament and Law) Datuk Seri Dr Wan Junaidi Tuanku Jaafar (pic) said in a statement that the abolishment of the limit only involved cases in the construction category.

"The limits for other categories remain at RM500,000. This initiative will hopefully assist in the recovery of problematic projects and will stimulate the country’s construction industry,” he said.

According to Wan Junaidi, feedback they received from engagement sessions between the Legal Affairs Division of the Prime Minister’s Department and key construction sector players found there was need to review the amount limit in construction disputes at PMC-19.

The measure is in support of the amendment to Act 829 that took effect since Jan 14 this year that allows contractual disputes of any category to be referred to PMC-19 without being subject to the nine categories set previously, he added.

He expressed hope that Malaysians who had any contractual disputes, including construction contracts, resulting from the enforcement of movement control under the Prevention and Control of Infectious Diseases Act 1988 since 2020 to resolve their disputes properly without involving legal proceedings in court through the mediation services offered by PMC-19.

Wan Junaidi said PMC-19, which was established after the Covid-19 outbreak hit the country, has played a role in assisting the public and business entities resolve disputes arising from the inability to implement contractual obligations due to the measures taken by the government under the Prevention and Control of Infectious Diseases Act 1988.

In this matter, based on Section 9 of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020, the Minister in Prime Minister’s Department (Parliament and Law) is allocated power to determine the mediation process, the appointment of mediator, the role and other aspects of mediation, he said.

Those looking to contact PMC-19 can do so by calling 03-8872 7070 or visiting the website www.pmc19.gov.my, he added.- Bernama