CMS meets Malay Contractor Association over Price Increase

Friday 12 August 2011, Kuching – CMS Cement, Sarawak’s sole cement manufacturer, today initiated a dialogue between the Malaysian Malay Bumiputera Contractors Association, Sarawak Branch, in response to the latter’s queries on the recent price increase of cement effective 1 August.

The dialogue was held at the office of the Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) and was attended by MDTCC Sarawak Director, Wan Ahmad Uzir, along with Ministry of International Trade and Industry’s (MITI) Sarawak Director, Sabariah Mohd Sofian and their officials.

Earlier, the Malaysian Malay Bumiputera Contractors Association, Sarawak Branch, had queried about the liberalization of cement price and the monopoly of cement in Sarawak.

On the matter of price liberalisation, the contractor association was informed by both the MDTCC and MITI that the price of cement was not a controlled item following deregulation of cement prices 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.

Meanwhile on the matter of CMS Cement having a monopoly over the supply of cement in the State, MITI clarified that such was untrue given that there is no policy to restrict the import of cement. 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.

The contractors association was also made aware that imported cement could cost even more than the domestic price in Sarawak in view of the high freight charges.