Saturday July 28, 2012
MBAM urges Govt to check on possibility of higher cement prices
PETALING JAYA: Master Builders Association Malaysia (MBAM) is urging the Government to look into the possibility of an increase in cement prices which it expects will have an impact on local construction players.
MBAM said in a statement that it had been notified by a major cement manufacturer that effective August 1, the price of a cement bag would increase to RM17.75 from RM16.75 previously while the price of cement bulk per tonne would be raised to RM340 from RM320.
“MBAM appeals to the Government, in particular the Domestic Trade, Co-operatives and Consumers Ministry, to look into the matter immediately. The said increase will definitely increase construction cost as prices of concrete and all cement-based products will be affected.”
It said contractors would be impacted as they hade signed fixed price contracts with project developers. Ultimately the price increase will be passed on to the end purchasers and thus the house buyers.
“We see no reason for the said increase as production costs have not gone up but in fact fuel and energy cost have come down this year.”