KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) has welcomed the expansion of the Rahmah Cement Initiative by the Housing and Local Government Ministry, describing it as a timely move to support affordable housing development amid rising construction costs.
FMM president Jacob Lee Chor Kok said the expanded initiative would help advance the Government’s affordable housing agenda under the 13th Malaysia Plan (RMK13) while easing financial pressures on developers and homebuyers.
He said that, under the scheme, bulk cement will be offered at RM290 per tonne, compared with the prevailing market price of RM425 per tonne, while standard 50kg bagged cement will be sold at RM17.50 per bag instead of RM24.90.
Lee said the lower prices are expected to reduce development costs and improve housing affordability.
“Both the construction and manufacturing sectors continue to face challenges arising from global uncertainties, including energy price volatility and supply chain disruptions.”
“In this context, measures that help stabilise the cost of essential construction materials are critical to sustaining development activities and strengthening the resilience of the housing ecosystem,” he said in a statement on Saturday (May 23).
Under the scheme, the government is allocating 1.6 million metric tonnes of highly subsidised cement to ensure affordable homes remain priced at RM300,000 and below.
On Thursday (May 21), Minister Nga Kor Ming said that housing developers and their directors would face a lifetime ban from the industry if they were caught reselling subsidised cement meant for affordable housing.
Nga issued the stern warning, stating that the government would not tolerate unscrupulous parties seeking to profit from the newly expanded initiative.
Lee added that targeted initiatives such as Rahmah Cement reflect the importance of practical collaboration in addressing economic challenges while supporting national development priorities.
He also expressed hope that similar initiatives could be expanded to include other locally manufactured building materials essential for affordable housing projects, such as ceramic tiles, steel and sanitaryware.
Lee added that greater use of locally produced materials would not only help moderate construction costs but also strengthen domestic industries, reinforce local supply chains and create more employment opportunities.
“Initiatives of this nature could also generate wider economic spillover effects across the construction value chain and contribute towards building a more sustainable, resilient and competitive industrial ecosystem,” he said.
