FMM Welcomes Expansion Of Simen Rahmah Initiative

KUALA LUMPUR, May 23 (Bernama) -- The Federation of Malaysian Manufacturing (FMM) has welcomed the expansion of the Simen RAHMAH initiative by the Ministry of Housing and Local Government (KPKT), describing it as a timely measure to support the government’s affordable housing agenda under the 13th Malaysia Plan (13MP).

FMM president Jacob Lee Chor Kok said the expanded initiative, which offers cement at about 30 per cent below prevailing market prices for affordable housing projects under the federal and state governments as well as the private sector, would help ease cost pressures arising from rising input and construction costs.

Under the expanded scheme, bulk cement will be offered at RM290 per tonne compared with the prevailing market price of RM425 per tonne, while standard 50kg bagged cement will be priced at RM17.50 per bag against the current market price of RM24.90 per bag.

“These reductions are expected to ease cost burdens on developers and contribute towards improving housing affordability for homebuyers,” he said in a statement today.

Jacob said FMM recognised that cost pressures across the construction and manufacturing sectors continued to be influenced by global uncertainties, including volatility in energy prices and ongoing supply chain disruptions.

“In this context, measures that help stabilise the cost of essential construction materials are critical in sustaining development activities and strengthening the resilience of the housing ecosystem,” he said.

He said FMM believed targeted interventions such as the Simen Rahmah initiative reflected the importance of practical and results-driven collaboration in addressing economic challenges while supporting national development priorities.

FMM also expressed hope that the concept could be progressively expanded to other locally manufactured construction materials essential for affordable and low-cost housing development, including ceramic tiles, steel, sanitaryware and other building materials.

“Such an approach could help moderate overall construction costs while creating broader benefits across the domestic manufacturing ecosystem,” Jacob said.

He added that increased adoption of locally produced materials would support domestic industries and strengthen local supply chains, while enhancing industry resilience, generating stronger economic multiplier effects and creating employment opportunities.

“Beyond supporting affordable housing, initiatives of this nature can generate wider economic spillover effects throughout the construction value chain, strengthen demand for locally manufactured products and support the development of a more sustainable, resilient and competitive industrial ecosystem,” he said.

-- BERNAMA