THE government expects the price and supply of construction materials to remain stable following the latest diesel subsidy announcement, with no major disruptions recorded despite Middle East geopolitical tensions, says Datuk Seri Alexander Nanta Linggi (pic).
The Works Minister said weekly monitoring by a special task force found no significant increases in the prices of seven key construction materials, leading the ministry to expect market conditions to remain steady.
Nanta said in a parliamentary written reply that the highest price increase recorded during the monitoring period was between March and April, when bitumen prices rose by up to 13.3%.
He added the Domestic Trade and Cost of Living Ministry began collecting retail cement and diesel price data in May, noting that cement prices were closely linked to retail diesel prices in each state.
As of June, the highest retail cement price was RM28 per bag in Labuan and Sarawak, while wholesale cement prices remained unchanged at RM24 per bag. No supply shortages were reported.
Nanta said the Works Ministry would continue monitoring fuel prices and logistics costs, while assessing their impact on public infrastructure projects, particularly those under the ministry.
“These measures will help strengthen contractors’ financial resilience, ensure the continuity of road maintenance and other critical infrastructure works and reduce the risk of delays or disruptions caused by industrial diesel prices and volatile logistics costs,” he said.
He acknowledged concerns over the impact of conflicts in the Middle East on global supply chains, including Malaysia.
To mitigate the risks, Nanta said 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,” he said.
He added the ministry was also working closely with the Finance Ministry, Bank Negara Malaysia, financial institutions and related agencies to ensure contractors have sufficient access to financing and cash-flow support.
At the same time, the ministry has continued engaging industry players to gather feedback on challenges affecting construction projects amid ongoing geopolitical uncertainty in the Middle East, he said.
