KOTA KINABALU: Tan Sri T.C Goh, President of The Federation of Chinese Associations Sabah (FCAS) has proposed the state government to consider allowing for imports of cement, as a temporary measure to address the ongoing acute shortage of cement supply facing the state.
Emphasizing the need for the state government to intervene promptly, Goh who is also a member of the Sabah State Economic Advisory Council said the state government should engage in discussions with the sole cement producer in the state, Sabah Cement Industry Sdn Bhd (CIS), to gain a better understanding of the operational and production issues leading to the severe shortage of cement in the market.
“We understand that this shortage is negatively impacting the construction sector in Sabah,” he said.
He noted that with the recovery of various sectors after the COVID-19 pandemic, many construction projects have resumed this year, and they are currently in full swing to meet their schedules. Unfortunately, for the last two months, FCAS has been receiving feedback from the construction sector that there was an acute shortage of cement supply, particularly in areas like Sandakan, Tawau, and Lahad Datu. This has raised concerns among stakeholders in the construction industry.
He thus hoped relevant government departments could pay serious attention to these concerns and take necessary actions to resolve the situation.
He lamented that despite the fact that all these years CIS held a monopoly in the supply of cement in the state, with rapid developments in various sectors, interruptions in cement supply have become more frequent, affecting government and private projects alike.
Goh who is also President of The Federation of Sabah and Labuan Hokkien Associations (FSLHA) went on to note that CIS had on January 4 increased cement prices by 5% to 15%, citing rising raw material and transportation costs as reasons.
He said, whether the current shortage is related to the same reasons or due to other reasons, the state government should thoroughly look into it and take effective measures to resolve the issue.
“In fact, we welcome and fully support the state government’s initiative through the Sabah Economic Development Corporation (SEDCO) of entering into a joint venture with a private company, Sri Alam Setia, in August this year, to establish a comprehensive clinker and cement plant in Tongod, as we believe once it’s completed and operational, it will once and for all address the issue of acute shortage of cement supply in the state,” he said.
This JV project is being spearheaded by Borneo Cement (Sabah) Sdn Bhd and once it’s completed and fully operational, the integrated clinker and cement plant will provide access to 5,000 tonnes of clinker per year, equivalent to 1.75 million tonnes of cement annually
Goh nonetheless suggested that until this new plant becomes operational, the state government should consider importing cement to ensure uninterrupted progress in both government and private construction projects.
He continued that being a company which held a monopoly of cement supply in the state, regardless of whatever operational issues there may be, CIS must always strive to ensure a sufficient and stable cement supply in the market, by adopting proactive risk management strategies in collaboration with the state government, instead of responding only when the situation becomes critical.
Citing the importance of cement as a fundamental building material, Goh stressed that any disruption in the supply chain could potentially lead to significant delays besides incurring substantial additional costs in infrastructure and construction projects.
He also noted that Datuk Chua Soon Ping, President of the Sabah Housing and Real Estate Developers Association (Shareda) had during the recent Sabah Property Expo 2023 (ProPex 2023) disclosed that post pandemic, demand for houses in the state, especially among the first-time home owners, has rebound.
Goh thus underscored that such a positive and encouraging trend should not be impeded by factors like shortage of cement supply.
He cautioned that the ongoing shortage of cement, if left unaddressed, could negatively impact the state government’s aspiration and goal of “Sabah Maju Jaya”.-pr/BNN
