KUALA LUMPUR (May 20): The Ministry of Housing and Local Government (KPKT) has expanded its Simen Rahmah initiative by offering cement at prices about 30% below market rates for affordable housing projects under federal and state governments, as well as the private sector.
Under the scheme, bulk cement will be priced at RM290 per tonne, 31.8% lower than the market price of RM425, while 50kg bagged cement will be sold at RM17.50 per bag, or 29.7% cheaper than the market price of RM24.90.
Housing and Local Government Minister Nga Kor Ming said the initiative aims to cushion rising construction costs linked to the global energy crisis and to support the government’s affordable housing agenda under the 13th Malaysia Plan (13MP).
KPKT has allocated 1.6 million tonnes of cement to support the construction of 500,000 affordable homes over the next five years under 13MP, according to Nga.
The government is prepared to increase the quota by up to another one million tonnes should demand continue to rise, subject to negotiations with the Cement and Concrete Association of Malaysia (C&CA) to ensure industry sustainability, Nga said in a statement on Wednesday.
He added that applications for the scheme would be fully digitised through the Housing Integrated Management System managed by the National Housing Department to improve governance and prevent leakages.
Nga added that the measure is aimed at helping to stabilise affordable housing prices, minimise the risk of delayed or abandoned projects, and ensure housing quality is not compromised.
Projects eligible under the expanded scheme include the People’s Residency Programme, developments under Syarikat Perumahan Negara Bhd and PR1MA Corporation Malaysia, as well as various state-level affordable housing programmes.
The Simen Rahmah scheme was first introduced in April 2023 through a collaboration between KPKT and the C&CA.
Since its launch, 29 affordable housing projects have been approved under the programme, supporting the construction of 11,909 housing units.
The initiative has generated an estimated RM45.8 million in construction cost savings, comprising RM38 million from bulk cement and RM7.8 million from bagged cement.