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Building costs rise in December on higher cement and sand prices

Malaysia’s building costs increased in December 2025, driven by rising cement and sand prices, while steel prices showed mixed trends, according to DoSM data

KUALA LUMPUR: Building costs rose in December 2025, driven by higher cement and sand prices, according to data from the Department of Statistics Malaysia (DoSM).

The unit price index of cement increased by between 1.2% and 3.2% from the previous month. Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the highest increase was recorded in Terengganu and Kelantan at 3.2%.

Sand prices also edged higher in December, with month-on-month increases ranging from 0.1% to 4.8% across Peninsular Malaysia, Sabah and Sarawak.

By contrast, the unit price index of steel slipped slightly, declining by between 0.1% and 1.0% on a monthly basis. However, the price index of steel and metal sections posted modest gains of between 0.1% and 1.1% across all regions.

On a year-on-year basis, the unit price index of steel fell by between 3.2% and 7.1% in December 2025 compared with a year earlier. The steepest decline was recorded in Sibu at 7.1%.

Cement prices, however, rose on an annual basis, with the unit price index increasing by between 2.0% and 6.1% across all areas.

Mohd Uzir said the average price of steel rose marginally by 0.1% to RM3,512.10 per metric tonne in December. The average price of Ordinary Portland cement increased by 0.8% to RM24.55 per 50 kg bag.

Meanwhile, the Building Material Cost Index (BCI) with steel bars for all building categories in Peninsular Malaysia recorded month-on-month increases of between 0.1% and 2.0% in December.

Sabah also saw gains of between 0.1% and 0.9% across all categories. In Sarawak, the BCI with steel bars declined slightly by between 0.1% and 0.2% for several building categories in Sibu.

Indices for all categories in Kuching and Miri rose by between 0.1% and 0.5%.

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