Kuala lumpur: The Simen RAHMAH Scheme will continue this year with 1.6 million metric tonnes of cement allocated to support the target of building 500,000 affordable housing units under the 13th Malaysia Plan (13MP).
According to BERNAMA News Agency, Housing and Local Government Minister Nga Kor Ming announced that the scheme, which offers cement at prices lower than the market rate, has also been expanded to cover affordable housing projects under the Federal Government, state governments, and the private sector. The initiative is a key component of the government's commitment to ensuring the housing sector remains robust, as it is a pillar of the national economy.
Through the expanded scope of the scheme, development projects under Syarikat Perumahan Negara Berhad (SPNB) and Perbadanan PR1MA Malaysia (PR1MA), along with various housing schemes under state governments, will benefit from cost protection through subsidised cement prices. This includes bulk cement priced at RM290 per tonne, representing savings of 31.8 percent compared to the market price of RM425. Bagged cement (50kg) is priced at RM17.50 per bag, offering savings of 29.7 percent compared to the market price of RM24.90.
'The first phase of the Simen RAHMAH initiative will provide 1.6 million metric tonnes of cement to support affordable housing projects priced at RM300,000 and below per unit,' Nga stated. By stabilising cement costs, developers can maintain lower selling prices without compromising construction quality. This serves as a mechanism to control house prices and prevent the risk of sick or abandoned projects.
To ensure the integrity of the scheme, applications will be fully coordinated through the Housing Integrated Management System (HIMS) by the National Housing Department (JPN) to ensure strict compliance with eligibility criteria.
Nga also noted that the initiative is part of the MADANI Government's proactive efforts to address global supply crisis challenges arising from the West Asia conflict. The ministry has taken steps to continue this initiative as a direct response to rising building material costs and global economic challenges that are affecting supply chains.
Introduced in April 2023 through a strategic collaboration with the Cement and Concrete Association of Malaysia (C and CA), the Simen RAHMAH Scheme has already shown success, with 29 affordable housing development projects approved involving 1,560,329 bags and 316,918.22 metric tonnes of cement.