The implementation of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020 introduced key exemptions that affected the calculation of Liquidated Ascertained Damages (LAD) for property delivery delays during the COVID-19 pandemic.

Key Provisions of Section 35 of the COVID-19 Act:
Exemption Period:
The period from 18 March 2020 to 31 August 2020 (167 days) is excluded from:
The timeline for delivery of vacant possession (VP).
LAD calculations for delays in delivering VP.
Extension Option:
Developers could apply for an extension of the exemption period up to 31 December 2020. If granted, this extended period must also be excluded from LAD calculations.
LAD Calculation Adjusted for COVID-19 Exemptions:
Scenario:
SPA Date: 1st July 2017
Completion Deadline (36 months): 30th June 2020
Vacant Possession Delivered: 31st December 2020
Purchase Price: RM500,000
Exemption Period: 18 March 2020 – 31 August 2020 (167 days)
Extension Approved: 1 September 2020 – 31 December 2020 (122 days)
LAD Formula:
\text{LAD Amount} = \frac{\text{Purchase Price} \times \text{10%}}{365} \times \text{Number of Chargeable Late Days}
Calculation Steps:

Important Notes:
Verify Extensions:
Confirm with the developer or relevant authorities if an extension beyond 31 August 2020 was approved under the COVID-19 Act.
Legal Documentation:
If disputing the developer’s claim, request written proof of the approved extension period.
Consult Professionals:
Seek advice from a qualified property lawyer if you believe the exemption has been misapplied or if LAD calculations seem inaccurate.
Summary
Under the COVID-19 Act, developers were granted relief from LAD obligations for delays occurring during specified periods. Purchasers must carefully review these provisions when calculating LAD and ensure proper documentation is obtained to verify the exemption period.