Nga Kor Ming, the Housing and Local Government Minister, has issued a stern warning to developers, stating that those who misappropriate subsidised cement meant for affordable housing will be blacklisted by the ministry for life. The initiative aims to allocate 1.6 million metric tonnes of subsidised cement to keep affordable homes priced at RM300,000 and below. Any developer found committing misappropriation will face a lifetime ban.
PUTRAJAYA: Errant developers and contractors who misappropriate subsidised cement meant for affordable housing will face a lifetime ban from the industry, says Nga Kor Ming.
Issuing a stern warning, the Housing and Local Government Minister said the government will not tolerate unscrupulous parties seeking to profit by reselling the subsidised building materials.
"The government does not want our good intentions to be abused. Whoever these irresponsible, unscrupulous parties are, they will be blacklisted by the ministry forever.
"I will blacklist not just the company, but the directors will also be blacklisted and put out of the business. There will be no more Advertising Permit and Developer's Licences for them," he warned. Nga’s ultimatum follows the expansion of the Rahmah Cement Initiative, which will see 1.6 million metric tonnes of subsidised cement allocated to keep affordable homes priced at RM300,000 and below.
He said the Real Estate and Housing Developers' Association has already briefed developers on the initiative, reminding them to uphold integrity.
"Make sure to be honest. We don't want people taking the cement and trading it. If any developer is found committing such misappropriation, for the avoidance of doubt, I will exercise my power to blacklist the developer and contractor for life," he told a press conference at his ministry on May 20.
To prevent leakages, Nga said all applications for the scheme will be strictly monitored and coordinated through the Housing Integrated Management System by the National Housing Department . The expanded scheme, formed through a strategic partnership with the Cement and Concrete Association of Malaysia , will officially take effect on June 1.
"Why June 1? Because it is our beloved King’s birthday, so we will start the scheme then," Nga said, adding that the initiative now covers affordable housing projects under both the Federal and state governments. Under the scheme, the price of bulk cement is capped at RM290 per metric tonne — a 32% reduction from the market price of RM425.
Meanwhile, a 50kg bag of cement will be sold at RM17.50, a 30% drop from the current market rate of RM24.90. Nga said the subsidy is a proactive response to the rising cost of building materials driven by geopolitical uncertainties in the Middle East and global supply chain crises.
"By stabilising the cost of cement, we are giving developers 'breathing room' to maintain low selling prices without compromising on construction quality. "When basic costs are stabilised, there is no longer an excuse for developers to reduce the quality of other materials. This also mitigates the risk of affordable housing projects becoming 'sick' or abandoned," he said. Nga noted that the initiative is a unique effort by the Madani government to alleviate the cost of living.
"No other government in the world has done this except the Madani government; you can check with Singapore or the United States," he added. During its initial launch in 2023, the scheme saw 317,000 metric tonnes of cement utilised to support the construction of 11,909 affordable homes.
Moving forward, Nga said the ministry is determined to empower the national housing agenda under the upcoming 13th Malaysia Plan , ensuring that youths and low-income families are not priced out of homeownership due to skyrocketing raw materials. King bestows Johor honours on Che' Puan Mahkota Khaleeda, Raja MudaFour teens plead guilty to injuring e-hailing driver in Alor Gajah
Affordable Housing Cement Initiative Subsidised Cement Misappropriation Year-End Initiative Rehda
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