Malaysia caps cement at RM290 per metric tonne under Simen Rahmah initiative, benefiting 500,000 affordable housing units.
PETALING JAYA: The Ministry of Housing and Local Government (KPKT) has expanded its Simen Rahmah initiative by offering cement at prices about 30% below market rates for affordable housing projects under federal and state governments, as well as the private sector.
Under the scheme, bulk cement will be priced at RM290 per tonne, 31.8% lower than the market price of RM425, while 50kg bagged cement will be sold at RM17.50 per bag, or 29.7% cheaper than the market price of RM24.90.
Housing and Local Government Minister Nga Kor Ming said the initiative aims to cushion rising construction costs linked to the global energy crisis and to support the government’s affordable housing agenda under the 13th Malaysia Plan (13MP).
“This is a very large subsidy provided by the industry.
“We are deeply grateful to the cement industry for stepping forward to help Malaysians, particularly those in need of affordable housing,” he said at a press conference here.
Under the scheme, a 50kg bag of cement for small contractors will be priced at RM17.50, compared with nearly RM25 in the open market, representing savings of about 30%.
Nga said the move is intended to stabilise construction input costs and prevent a knock-on effect on house prices amid inflationary pressures and global economic uncertainty.
“Through this measure, I hope construction material costs can be controlled, and I also want to ensure that housing prices do not increase,” he said.
He stressed that strict governance mechanisms would be enforced through the Housing Department’s Housing Integrated Management System (HIMS), with quantity surveyors required to certify usage to prevent leakage and abuse.
“To ensure there is no leakage, all applications must be processed through the HIMS system.
“Developers must also obtain verified quantity surveyor certification before accessing subsidised cement, while real-time monitoring will track usage volumes across projects,” he said.
Nga said the initiative forms part of the Madani government’s broader response to rising living costs, alongside programmes such as Budi95, Budi Diesel, STR, SARA and the Housing Credit Guarantee Scheme.
He warned that strict action would be taken against developers found abusing the scheme, including blacklisting and the withdrawal of licences.
“We do not want anyone receiving subsidised cement and then reselling it for profit.
“To prevent abuse, I will use the ministry’s powers against any developer who misuses this scheme.
“They can be blacklisted and denied future Advertising Permit and Developer’s Licence (APDL) approvals,” he said.
The minister said the programme would also support Syarikat Perumahan Negara Berhad’s (SPNB) Rumah Mesra Rakyat projects, with nearly 6,000 units planned this year.
He said each unit, originally priced at about RM90,000, would be sold at RM70,000, with the government absorbing around RM20,000 per unit.
For buyers unable to secure financing, the government has allocated RM40 billion under the Housing Credit Guarantee Scheme, offering financing guarantees of up to 120% and repayment periods of up to 16 years.
Nga said monthly repayments could be as low as RM300, or roughly RM10 a day.
He added that the main objective of the initiative was to help control construction costs and ensure affordable housing prices remain manageable for Malaysians.
