Deputy Prime Minister Najib Razak said the government will implement a new pricing mechanism for cement next year, under which prices will be reviewed on a quarterly basis, the official Bernama news agency reported.
"From Jan 1, 2008, we will follow the automatic pricing mechanism to tag cement prices every four months," Najib told reporters after chairing a cabinet committee meeting on essential goods.
Cement remains a controlled item and the government will ensure adequate supply of the building material, said Najib.
"We are still practising the controlled price policy under which we have raised cement prices from time to time previously but this approach is not very efficient," he added.
Demand for building materials is on the rise as the government seeks to pump prime the economy by undertaking large infrastructure projects under its five-year development plan, which runs through 2010.