Developers: Liberalise Steel Product Imports

THE Real Estate and Housing Developers Association (Rehda) wants the Government to liberalise the import of steel products so that supply is ensured by free market forces.

In a statement yesterday, Rehda president Ng Seing Liong said it also objects to the proposal to implement the Automatic Price Mechanism (APM) which would effectively peg steel product prices to scrap metal prices.

Rehda is the second association to voice its opposition to the mechanism after the Master Builders Association of Malaysia.

According to Rehda, the Domestic Trade and Consumer Affairs Ministry had said that if the proposal is implemented, scrap metal prices will be monitored and controlled by the ministry.

“Given the challenges the ministry faces in monitoring and enforcing price ceilings, it is doubtful whether the APM can be effectively monitored and controlled,” said Rehda.

In a recent meeting, Rehda said steel millers are asking the Government to raise steel ceiling price by an additional RM150 a tonne because they are not in a position to produce steel bars and billets.

“As steel bars and billets are essential items for building and construction, this has left little choice for industry players except to concur with the demands of local steel millers for another upward revision in pricing,” said Ng.

However, he said a rise in steel prices will cause a domino effect on prices along the value chain which would eventually result in house price increase across the board and dash the aspirations of Malaysians to buy homes.

Meanwhile, all developers are advised to contact the ministry at 1-800-866-800 if steel millers charge prices which are above the prevailing ceiling prices during delivery.

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