KUALA LUMPUR: The government expects the prices and supply of construction materials to remain stable following the latest diesel subsidy announcement, with no major disruptions recorded despite geopolitical tensions in the Middle East.
Works Minister Datuk Seri Alexander Nanta Linggi said weekly monitoring by a special task force found no sharp increase in the prices of seven key construction materials.
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"Based on the latest diesel price developments, the prices and supply of construction materials are expected to remain stable," he said in a parliamentary written reply dated Wednesday (July 8).
He said the highest increase recorded during the weekly monitoring period was between March and April, when bitumen prices rose by as much as 13.3%.
He said the Domestic Trade and Cost of Living Ministry began collecting retail cement and diesel price data in May, adding that retail cement prices were closely influenced by retail diesel prices in each state.
As of June, he said, the highest retail cement price was RM28 per bag in Labuan and Sarawak, while wholesale cement prices remained unchanged at RM24 per bag. No cement supply shortages were reported.
Nanta said his ministry would continue monitoring fuel prices and logistics costs while assessing their impact on the implementation of public infrastructure projects, particularly those under its purview.
He said these measures would help strengthen contractors’ financial resilience, ensure the continuity of road maintenance and other critical public infrastructure works, and reduce the risk of project delays or disruptions arising from industrial diesel prices and volatile logistics costs.
Nanta said the government remained concerned over the impact of the Middle East conflict on global supply chains, including Malaysia, particularly its effects on industrial diesel prices and logistics costs.
"To mitigate the impact, the ministry established a special task force in May to monitor construction material prices and costs through weekly meetings.
"Since July, the task force has met once every two weeks to continue monitoring developments," Nanta said.
He added that the ministry was also working closely with the Finance Ministry, Bank Negara Malaysia, financial institutions and related agencies to ensure contractors had sufficient access to financing and cash flow support to continue project implementation.
At the same time, it has continued engaging industry players to gather feedback on the challenges affecting construction projects amid the ongoing geopolitical uncertainty, he added.
