Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Wednesday, November 5, 2008

Construction gets much-needed lift

PETALING JAYA: The removal of import duty for cement and long iron and steel products, and abolishment of approved permit (AP) for long iron and steel products will give the construction industry a much-needed boost.

Master Builders Association Malaysia president Ng Kee Leen welcomed the Government’s latest move as a way to promote competitive material pricing and lower construction costs.

“The Government’s reiteration on the waiver of import duty and AP for steel helped clarify the import process, which was not fully understood by all parties earlier.

“The lifting of cement import duty, meanwhile, will lower the domestic cement price which is now 15% to 20% more expensive than imported cement.

“However, it may take months to feel the impact,” he told StarBiz yesterday.

Previously, a 10% import duty was imposed on cement from non-Asean countries.

Cement and Concrete Association of Malaysia executive director Grace Okuda was surprised by the announcement, as the association was not consulted on the waiver of cement import duty.

Lafarge Malayan Cement Bhd president and chief executive officer Bi Yong Chungunco said the company needed to verify the reported statement before giving any comments.

OSK Research analyst Ng Sem Guan said the latest move covered long steel products compared with only billets and certain grade of long bars announced by the Government on May 12.

“While the step may address the contractors’ complaint of the shortage of certain steel products and create a competitive pricing environment, the impact to local steel millers remains nominal, given that local millers benefit from their logistic advantage that allow prompt and small quantity delivery with competitive pricing.

“We also think that the Government may introduce local standard or testing requirement on imported steel products to safeguard public interest and safety hence non-tariff barrier to import,” he said.

By The Star

No comments: