Kuala lumpur: The Federation of Malaysian Manufacturing (FMM) has welcomed the expansion of the Simen RAHMAH initiative by the Ministry of Housing and Local Government (KPKT), describing it as a timely measure to support the government's affordable housing agenda under the 13th Malaysia Plan (13MP).
According to BERNAMA News Agency, FMM president Jacob Lee Chor Kok stated that the expanded initiative offers cement at approximately 30 percent below prevailing market prices for affordable housing projects under the federal and state governments as well as the private sector. This move is expected to ease cost pressures arising from rising input and construction costs.
Under the expanded scheme, bulk cement will be offered at RM290 per tonne compared to the prevailing market price of RM425 per tonne. Standard 50kg bagged cement will be priced at RM17.50 per bag against the current market price of RM24.90 per bag. Jacob noted that these reductions are anticipated to ease cost burdens on developers and contribute towards improving housing affordability for homebuyers.
Jacob highlighted that FMM recognized that cost pressures across the construction and manufacturing sectors continued to be influenced by global uncertainties, including volatility in energy prices and ongoing supply chain disruptions. He emphasized that measures stabilizing the cost of essential construction materials are critical in sustaining development activities and strengthening the resilience of the housing ecosystem.
He further added that FMM believed targeted interventions such as the Simen Rahmah initiative reflected the importance of practical and results-driven collaboration in addressing economic challenges while supporting national development priorities. FMM also expressed hope that the concept could be progressively expanded to other locally manufactured construction materials essential for affordable and low-cost housing development, including ceramic tiles, steel, sanitaryware, and other building materials.
Jacob stated that such an approach could help moderate overall construction costs while creating broader benefits across the domestic manufacturing ecosystem. He added that increased adoption of locally produced materials would support domestic industries and strengthen local supply chains, enhancing industry resilience, generating stronger economic multiplier effects, and creating employment opportunities.
He concluded by saying that beyond supporting affordable housing, initiatives of this nature can generate wider economic spillover effects throughout the construction value chain, strengthen demand for locally manufactured products, and support the development of a more sustainable, resilient, and competitive industrial ecosystem.