Friday 29 Mar 2024
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KUALA LUMPUR (June 17): The Johor Master Builders Association (JMBA) warned today of an imminent 50% hike in cement prices, which will jeopardise government initiatives to promote affordable home ownership via reduction in house prices.

In a statement today, JMBA said its members recently received notices from four cement manufacturers that prices of cement will increase within the next one to two weeks.

"We are also given to understand some manufacturers have started closing down production lines in the name of maintenance and therefore, creating a shortage in the supply," JMBA said. 

At the time of writing, The Cement and Concrete Association of Malaysia had not issued a statement in response to such allegations.

JMBA urged cement manufacturers to take into account builders and cement manufacturers long-term partnership and not to burden builders with sudden exorbitant cement price hikes. 

"Any price increases should be gradual and give us at least three months notice in advance. JMBA also wants the cement manufacturers to ensure a stable supply and not to create any shortage in the market which may jeopardise the industry. JMBA would like to appeal to the relevant government authorities to look into this matter and monitor the situation closely," JMBA said. 

JMBA said the unexpected cement price hike will cause contractors to suffer heavy losses. JMBA said it feels the local construction industry is still experiencing a downturn and that the country's cement supply is more than demand.

"There is still surplus cement in the market, the price hike is happening sooner than expected. JMBA also appealed to the government to look into the sudden price hike, could it be linked to the recent mergers and takeovers of cement manufacturers in the country. This scenario will stifle competition and encourage monopoly and price control, which is not healthy for our economy. 

"Our government initiatives to promote affordable home ownership whilst urging the developers to reduce house prices, will also be jeopardised by this price hike. Ultimately, the people will bear the full brunt of the increase," JMBA said.

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