Are traders exploiting political instability to hike building material costs?

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Traders Suspected of Exploiting Political Instability for Building Material Price Hikes

There are suspicions among industry players that some traders are exploiting the recent political instability and the dissolution of Parliament to inflate building material costs. This alleged exploitation has led to a significant increase in cement prices, which has subsequently impacted other related construction materials.
Cement Prices Surge Amidst Political Uncertainty

Since the dissolution of Parliament in October for the 15th general election, the price of a 50kg bag of cement has reportedly increased by 30%, rising from RM17 to RM22.50. This price hike has persisted even after the formation of a new coalition federal government, raising concerns within the construction sector. Cement is classified as a Scheduled Controlled Good in Malaysia, meaning its prices are regulated by the government.
Domino Effect on Related Construction Materials

The increase in cement prices has triggered a ripple effect across the construction industry, influencing the costs of other essential building materials. Items such as gutters, roofing materials, and ready-mixed cement have also seen their prices rise, exacerbating cost control challenges for contractors nationwide. This interconnectedness means that a price surge in one key commodity can significantly impact the overall expense of construction projects.
Concerns Over Price Regulation and Market Manipulation

Industry representatives have voiced hopes that the new government will address the issue of rising cement prices, urging for a return to previous price levels. The fact that cement is a government-controlled product makes the arbitrary increase particularly concerning. Some within the industry suspect that rogue traders are capitalising on the period of political transition and instability to engage in price gouging, thereby profiting from the situation and affecting the stability of construction projects.

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Are traders exploiting political instability to hike building material costs?

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