Developers call for building material price controls


KUCHING: The Sarawak Housing and Real Estate Developers Association (Sheda) has called for temporary price controls on important building materials.

Its chairman Datuk Sim Kiang Chiok said this would ensure price increases could be controlled and absorbed by the market slowly without affecting the national economy badly.

He said a sharp surge in demand in Malaysia was acknowledged to have caused a shortage of raw material supply with major economic powers also reopening their economies about now.

“Although the price index shows a small increase, with the continuous increase the effect will be significant over a period of time.

“This is coupled with the reopening of most sectors of the economy, there is a huge demand for raw materials to support production activities.

“With the opening of our economy under Phases 3 and 4 of the National Recovery Plan, most economic sectors are now able to restart and continue their business operations,” he said when contacted by Suara Sarawak recently.

“Demand for oil and gas has also soared, causing the increase in the price of raw materials, including increasing production and transportation costs.

“The lower purchasing power of our ringgit, as the exchange rate to the US dollar and other major currencies has declined, has also caused the price of imported building materials to rise.

“Therefore, developers need to absorb the cost increase if the property is sold at a fixed selling price while for unsold properties, the developer can adjust the property price to absorb the cost increase,” he added.

He explained that contractors faced with ‘material price variations’, could demand a price increase that would help reduce the increase in construction costs.

“Admittedly, the shortage of manpower will also cause an increase in construction costs and time delays as the value of work will become more expensive with higher wage demand and work progress may also experience delays.

“With the high rate of immunisation in our country, we can open up our economy to save jobs, however I see a lot of time needs to be given for the country’s economy and business to catch up and accelerate back to levels before the Covid-19 spread,” he said.

Reliable transport industry important for economic growth: Lee

KUCHING: There is a need for a reliable, efficient and competitive transport industry for the country’s economic growth and development. Transport Minister Datuk Seri Lee...

Share post:

Our Opinion

More like this

Energy of youth will stimulate Sibu economy, says Tiong

SIBU: The energy of youth is needed to stimulate...

Mayor rallies media to push council agenda forward

MIRI: Mayor Adam Yii Siew Sang hopes to work...

Covid-19 reports earn media pat on the back

MIRI: Local journalists have come in for praise for...

STB reaffirms pledge to fight corruption

BY JACINTHA JOLENE KUCHING: Sarawak Tourism Board (STB) has joined...

Integrity will give civil servants better image: Karim

KUCHING: All ministries and agencies in Sarawak are demonstrating...

Ministry all for showcasing local talent globally

BY JACINTHA JOLENE KUCHING: The Ministry of Tourism, Creative Industry...

Tourism body committed to stamping out corruption

BY JACINTHA JOLENE KUCHING: Sarawak Tourism Board (STB) is committed...

Vote for GPS in GE15: DCM

Stronger voice in Parliament? KUCHING: If Sarawakians, the business community...