Borneo cement shortage threatens construction projects

A shortage of cement in Sabah, Borneo, is having a significant impact on the state's construction industry, particularly in the towns of Sandakan, Lahad Datu and Tawau in the east coast. According to The Borneo Post, the shortage is in danger of causing all construction activity to grind to a halt. 

Henry Tsen, president of the Sabah Builders Association (SBA), has expressed concern for the country’s construction companies. “They were badly affected by the COVID-19 pandemic over the past three years due to the lockdown, rapid increase in building materials and labour cost, shortage of workers and disruption of supply chain,” he said. “Many are just recovering from their financial difficulties, it adds further financial burden by this unexpected disruption to their work progress. SBA opines it will be beneficial to the construction sector to have additional cement manufacturers/suppliers to provide more reliable cement supply to the construction industry.”

According to Mr Tsen, Borneo’s government had promised to award more projects to Sabah’s construction companies but many have not yet been implemented, including the remaining contracts on the Pan Borneo Highway. He has called on the government to progress these projects as soon as possible to improve cashflow for those companies in the construction sector.