Sarawak Chief Minister Abang Johari Abang Openg has been urged to break Cahya Mata Sarawak Bhd's (CMS) monopoly of the state's cement production.
In a statement today, Sarawak DAP spokespersons Abdul Aziz Isa and Thomas Sixtus Tegong Laka said competition in this industry will help reduce cement and house prices.
"It is well known that property prices in Sarawak have become very expensive, making it unaffordable for the low and middle-income groups, and one of the reasons is the price of building material such as cement that has been monopolised by CMS for decades," said the duo.
They said matters were made worse after the industry was deregulated, and cement prices were no longer a price-controlled item.
"Monopoly is bad for the state's economy. This is because monopolists tend to collude and create an artificial shortage to increase the price of their products.
"Thus, when there's a severe shortage of cement in the state, the whole industry is affected, including the construction industry," they said.
They urged Abang Johari to further liberalise the industry by inviting other companies to produce cement and encourage healthy competition.
They said that this was necessary ahead of the construction of 12 more dams at Batang Ai, Bakun and Bengoh. - Mkini
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