Call to relax cement import rules in Malaysia

Conditions on cement imports should be eased, according to SME Association President, Michael Kang, and Universiti Tun Abdul Razak economist, Barjoyai Bardai. At present cement importers must obtain a letter from the ministry and a certificate from the Construction Industry Development Board.

Mr Kang, whose association represents some 10,000 members, said: “Many of our members are in construction and have already committed to jobs and are now sweating over the increase in cement prices because their costs will increase. We want the government to do something about it.”

“If they cannot control the price, then they must make it easier for people to import cement. Now to import cement you need a permit, and even then, many of those who import only use them for their own projects," he added.

He also voiced concern over the lack of competition in the industry while Mr Bardai said an artificial market existed because cement supply was controlled and therefore, the current market situation would improve if the import market was opened up. If the government wanted to help local cement producers, it could look at lower regulatory costs or introducing incentives to reduce their input costs.