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Saturday, April 24, 2010

Cement to cost 10pc more come May 1

The price of bagged cement is due to rise by 10 per cent to between RM15.50 to RM16.50 per bag from May 1. Each bag weighs 50kg.

Steel millers and cement manufacturers in Malaysia face higher production cost as world oil price had been on the rise.

Earlier this week, Tasek Corp Bhd, announced the 10 per cent retail price increase in a small advertisement.

When contacted, Master Builders Association of Malaysia (MBAM) president Ng Kee Leen said, "The cement manufacturers have been wanting to raise prices for the past year."
It is understood that bulk cement is also expected to go up by RM25 per tonne from May 1.

Builders are thinking of buying raw materials like cement from abroad as they are cheaper.

"As contractors, we have to control costs. We're looking at regional pricing. If we can get basic building materials like bagged cement and steel bars at a cheaper prices, we'll import," he told Business Times in a telephone interview from Taipei, Taiwan.

Ng was leading a 23-member delegation to participate in the 38th International Federation of Asian & Western Pacific Contractors' Association (IFAWPCA) convention to share Malaysia's initiative in promoting the use of environmentally friendly ways of construction.

"We're in talks with building material suppliers in Taiwan for more competitive prices. So far, the talks are encouraging," he said.

Following this, MBAM said pricier steel bars and cement will mean costlier construction projects, be it government funded or jobs procured from property developers.

"We're trying our best to minimise cost but we also have to pass on the material price increase to consumers," Ng said.

By Business Times

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