Ministry clears CMS of cement supply monopoly claims, Malaysia

Ministry clears CMS of cement supply monopoly claims, Malaysia
Published: 17 August 2011

CMS Cement has been cleared of allegations that it monopolised the supply of cement in the state by the International Trade and Industry Ministry (MITI).

“MITI clarified that it was untrue given that there is no policy to restrict the import of cement,” the company said in a press statement yesterday.

“However, MITI explained that with the current demand lower than production capacity at the state’s two cement manufacturing plants, the situation did not warrant other players in the state.”

CMS Cement issued the statement following a dialogue with the Malaysian Malay Bumiputera Contractors Association, Sarawak Branch, last Friday on the increase of cement price from August 1.
The dialogue was held at the Domestic Trade, Cooperatives and Consumerism Ministry’s office here and was attended by, among others, MITI Sarawak director Sabariah Mohd Sofian.

The association had raised questions about the liberalisation of cement price and the monopoly of cement in Sarawak. On price liberalisation, the association was informed by the ministry and MITI that the price of cement was not a controlled item following its deregulation in June 2008.

“As such, it was market forces that now dictated the price. In addition, with deregulation, cement manufacturers did not require government approval for price increases or decreases,” said the statement.

The association was also informed that imported cement could cost more than cement manufactured locally because of high freight charges.