Malaysia’s Ministry of Finance has called for an investigation to determine whether monopolistic practises by the local cement industry in Sarawak is the cause of high cement prices in the state.
"Cement is a basic building material and a drastic price increase will inevitably feed into the economy negatively, and eventually hurt consumers. At the same time, cement prices in Sarawak that are markedly higher than in Peninsular Malaysia should be further examined to determine whether it is caused by monopolistic practices of local industry players in Sarawak," said Lim Guan Eng, finance minister, in a statement.
Mr Guan Eng made the statement after noting that the Minister of Domestic Trade and Consumer Affairs, Saifuddin Nasution Ismail, had kept cement prices in check after meeting with cement players.
"This success immediately tackles concerns over a possible 40 per cent hike in cement prices across Peninsular Malaysia, as reported by the media in the past week. It also alleviates fears that major cement producers in the country were abusing their market power to raise cement prices unfairly," said Mr Guan Eng.
