KOTA KINABALU: As the state’s sole supplier of cement who monopolises the market, Sabah Cement Industry Sdn Bhd (CIS) should have sufficient expertise and crisis management awareness to ensure long-term stability in cement supply for the state, said Tan Sri T.C Goh, President of The Federation of Chinese Associations Sabah (FCAS).
He opined that even in the face of rising demand in the market, the company should always be proactive in long-term planning to prepare for potential challenges.
He thus expressed bewilderment over the company’s much delayed explanation, only two months after the plight of the local construction sector over acute shortage of cement supply was highlighted in the local media.
“It (CIS) should have explained the situation earlier to affected businesses so that they could make necessary arrangements to avoid additional losses,” he said.
Nonetheless, in a statement issued today, Goh who is also a member of the Sabah Economic Advisory Council (SEAC) acknowledged and looked forward to the company’s efforts to increase production and deliver cement to the market. He hoped it would temporarily alleviate the pressing situation faced by the construction sector.
However, he emphasized that to better cater to the long-term needs of infrastructure development and private sector, post pandemic, the company should promptly prepare and implement operational strategies, instead of continuing to adopt reactive measures.
He noted that the company had in its recent statement explained that the recent cement supply shortage in the state was due to two key factors i.e. significant machinery breakdown last month, reducing its production from 2,400 to 1,400 tons per day, or an equivalent of 40% reduction, and the other factor was due to bad weather in Peninsula Malaysia and Vietnam affecting shipping of raw materials to Sabah.
“We hope the company could take the recent episode as a lesson and to promptly improve its crisis management and always put in place proactive measures, so as to ensure that cement supply will never again become an issue which hinders overall development and progress of the state,” he stressed.
He reiterated that as the sole producer of cement in the state, CIS has responsibility to ensure stable cement supply and prices.
In his response to the issue earlier, Goh called for immediate intervention by the state government to understand and to identify whatever operational challenges faced by CIS. Besides this, he also proposed the state government to consider allowing imports of cement, as a temporary solution to the critical situation.
He cautioned that the said issue if not properly and promptly addressed, could negatively impact the state government’s aspiration and goal of “Sabah Maju Jaya”.-pr/BNN
