Ministry to summon industry players amid bid to hike cement prices

The Domestic Trade and Consumer Affairs Ministry will summon cement industry players for a meeting next week amid their proposal to hike the price of the construction material.

Domestic Trade and Consumer Affairs Minister Saifuddin Nasution (above) told Malaysiakini the matter was a sensitive one as it would affect the cost of housing but wanted to hear what the cement players have to say.

"Next week, the ministry will be meeting with the industry to hear their reasons for wanting to hike cement prices.

"The industry has to date given the reason that they are suffering losses, so we will listen to what they have to say," he said.

Saifuddin said his ministry has not approved any price hike and any decision will only be made after the meeting.

"This is very sensitive because it involves the cost of building houses and house prices.

"That is why we have called them for discussion and to listen before any decision," he said.

Saifuddin added that his ministry can investigate the cement players under the Price Control and Anti Profiteering Act 2011 if they were making unreasonable profits.

On Friday, EdgeProp.my quoted several unnamed construction industry players as saying that they have received a circular from a local cement company that it was increasing the price of cement and ready-mixed concrete by mid-June.

The report added that there were only a few players in the market and if one company were to hike prices the others may follow suit.

The report said the proposed hike had yet to come into effect.

However, The Malaysian Insight reported that cement prices in Johor have already seen a 50 percent hike.

MCA president Wee Ka Siong, earlier today, said the Pakatan Harapan government must take responsibility if it cannot arrest the hike.

"The drastic increase will not only see public and private contractors, which are tied to fixed-price contracts, to face the risk of bankruptcy and major losses, on top of a rise in the cost of living for Malaysians.

"Furthermore, it will also affect affordable housing projects by the government," he said.

Wee questioned by the proposed hiked is linked to the recent developments in the industry, including the takeover of La Farge Malaysia.

La Farge Malaysia was recently taken over by YTL Cement. In a separate development, Hong Leong Asia Ltd is taking Tasek Cement private.

Wee said the developments reduces competition and raises questions on how prices are fixed.

"If the price hikes are due to hidden hands to gain a monopoly, the Harapan government must enforce the Competition Act 2010 which was introduced by the previous BN government to stop or limit the unreasonable price hike," he said.

 -Mkini