Groups Seek `Immediate’ Action on Steel Prices, Supply

THE local construction industry has come out in full force to urge the government to take immediate action in curbing rising prices and acute shortage of steel, issuing a statement saying the higher prices could stall projects under the Ninth Malaysia Plan.

The statement was signed by five associations namely, Master Builders Association Malaysia, Real Estate and Housing Developers Association Malaysia, Persatuan Kontraktor Melayu Malaysia, Building Materials Distributors Association of Malaysia and The Associated Chamber of Commerce and Industry Malaysia.

The statement is Master Builders’s second on the issue after it called on the government to take immediate steps to ensure they get enough supply of steel bars, billets and cement at controlled prices, on October 12.

The four-page statement released last Friday stated that the five associations were concerned that recurring shortages and price fluctuations would interrupt the construction schedules of projects and housing developments under the Ninth Malaysia Plan, especially low and medium-cost housing.

“The associations have continuously voiced our fears that this would cause delays and increase the risk of project failures when costs cannot be contained. However this warning has fallen on deaf ears,” the statement said.

The group said contractors have been absorbing the price increase of the material thus far but could not afford to continue doing so without facing serious cash flow problems and severely affecting the bottom line of profitability.

It went on to say that members have informed that millers were charging a total price of between RM350 and RM500 above the controlled price of steel bars per tonne. The price of steel bars has been revised twice by an increase of 20 per cent on April 16 2007 and an additional RM150 in June 2007.

The group again request the government to consider removing price controls on steel bars, ban the export of steel bars and billets.

It also asked that the Ministry of Domestic Trade and Consumer Affairs (MDTCA) monitor and check production schedules and delivery status in order to resolve the steel supply issue.

The statement stresses that “the associations in unison would like to appeal to the government and all relevant ministry and government agencies such as MDTCA and Construction Industry Development Board to take immediate action to review and implement these measures to boost the property and construction industries.”

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