BY ALEXANDRA LORNA & NATASHA JEE
KUCHING: Sarawak is in need of a dependable and sufficient supply of construction materials to ensure the timely completion of all development projects in the state.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said delays in the availability of materials would lead to additional costs and impact the lives of Sarawakians, especially for critical projects such as schools, hospitals and infrastructure.
“Shortages and disruptions in supplies often result in price escalation, necessitating revised budgets and additional funds.
“Cement, for instance, accounts for 3 to 7 per cent of construction costs. It is one of the most widely consumed materials in the world,” he stated.
Abang Johari made these remarks during the signing ceremony of the memorandum of understanding (MoU) between Innocement Sdn Bhd, SCG International and YTL Cement Berhad here on Friday (July 14).
He pointed out that Sarawak has an underdeveloped cement industry with only a limited number of players.
To reduce the risk of relying solely on a single supplier and create a healthy competitive environment, he stressed the importance of injecting new players into the state’s cement industry and strengthening the cement supply chain of Sarawak.
Therefore, the signing of MoUs between Innocement and two prominent cement players in the region, SCG International from Thailand and YTL Cement, Malaysia’s largest cement manufacturer, is a strategic move to enhance the cement supply chain of the state.
When questioned by the media, Abang Johari explained that with more development projects taking place in the state, there is a greater demand for cement to support these initiatives.
“While we do have cement, it is not enough to meet the increasing demand due to the rise in development projects. For example, we may have a certain volume of supply, but our demand is much higher. So, there is a shortfall that needs to be filled, particularly in the northern area,” he explained.
