KL liberalizes cement imports to ease shortage

KL liberalizes cement imports to ease shortage

KUALA LUMPUR (AFP): Malaysia has liberalized cement imports to
overcome an increasingly acute shortage of the building material,
officials and reports said yesterday.

Domestic Trade and Consumer Affairs Minister Abu Hassan Omar
said the cabinet decided on Wednesday to issue licenses allowing
import of cement for up to five years after being convinced of
the seriousness of the cement crisis.

"The importation of cement will be open to everyone from now.
All they have to do is apply for a license from the ministry's
enforcement department, " the Star quoted Abu Hassan saying.

Although there was no official ban, the government had in the
past discouraged the import of cement to protect the local
industry.

Trade officials said importers would have to pay 25 ringgit
(US$10.00) each for the license.

Officials said importers, however, must sell cement at prices
fixed by the government, officials said. Approved retail prices
for cement are between 180 ringgit and 192 ringgit a ton.

Local producers will be asked to produce a specified amount of
cement to allow the government latitude to plan long-term supply,
Abu Hassan said.

There are eight cement companies operating 10 plants in
Malaysia producing an estimated 10 million tons a year, while
industry officials estimated local demand "conservatively" at 11
million tons.

Experts have blamed the acute shortage on the limited number
of local cement plans and massive growth of the construction
sector in recent years.

"But the crux of the problem is the government's rejection of
a request by local producers to raise prices, citing inflation
worries," a cement producer said.