The Malaysian government plans to increase the Rahmah Cement Initiative, offering subsidized building materials at discounted prices to aid the 13th Malaysia Plan in constructing affordable homes for federal and state governments, as well as private sector projects.
PUTRAJAYA: The government is expanding the Rahmah Cement Scheme to offer subsidised building materials for affordable housing projects under the Federal and state governments, as well as the private sector.
Housing and Local Government Minister Nga Kor Ming said 1.6 million metric tonnes of cement have been allocated for the initiative to support the 13th Malaysia Plan target of building 500,000 affordable homes over the next five years. Under the expanded scheme, bulk cement is priced at RM290 per metric tonne, translating to savings of RM135, or 31.8%, compared to the market price of RM425.
Meanwhile, a 50kg bag of cement will be sold at RM17.50, representing a 29.7% or RM7.40 drop from the current market rate of RM24.90. Nga said the expanded scope will now cover iconic public housing projects such as the People's Residency Programme , projects under Syarikat Perumahan Negara Berhad and PR1MA Corporation Malaysia, as well as various state government housing schemes.
"The ministry intends to continue the Rahmah Cement Initiative and offer cement at lower-than-market prices specifically for affordable housing projects. "Through this, we hope developers will continue to support the Madani government's agenda of providing quality affordable homes, despite facing rising construction costs due to the global energy crisis following the Middle East conflict," he said in a press conference on Wednesday .
Nga explained that the cost savings will act as a price control mechanism, serving as an early intervention to prevent"sick" or abandoned projects while ensuring that the quality of homes is not compromised. Since its introduction in April 2023 in collaboration with the Cement and Concrete Association of Malaysia , the scheme has recorded significant success.
Nga noted that 29 affordable housing projects have been approved under the scheme to date, utilising over 1.56 million bags and 316,918 metric tonnes of cement. This supported the construction of 11,909 homes and resulted in RM45.8mil in total construction savings, comprising RM38mil for bulk cement and RM7.8mil for bagged cement.
"This is an example of the synergy between the Madani government and the private sector in prioritising the people's welfare, in line with the 4P principle: People-Public-Private Partnership," he added. Nga also said the expansion of the scheme is a key component of the Housing Reform agenda announced last November, proving the government's commitment to keeping the national housing ecosystem resilient against global economic uncertainties.
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Rahmah Cement Scheme Subsidised Building Materials Affordable Housing 13Th Malaysia Plan Cement Bulk Cement 50Kg Bag Of Cement Market Price Price Control Mechanism Early Intervention Cement And Concrete Association Of Malaysia Rahmah Cement Initiative Successful Projects 1.6 Million Metric Tonnes Of Cement 500 000 Affordable Homes Rising Construction Costs Quality Affordable Homes
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