Published on: Wednesday, August 08, 2012
Kota Kinabalu: There is no hike in the price of cement in Sabah, said Cement Industries (Sabah) Sdn Bhd (CIS) Executive Director, Bahrul Razha Chuprat.
He said there is no need for the government-linked company to raise the price of cement as it can still generate profit and also because the prices of raw material have yet to be revised.
"We have no intention to raise the price of cement in Sabah although the peninsula has raised prices twice in 2008 and either in 2009 or 2010.
"In fact, we have lowered the cement price in 2008 when the CIS bulk terminal in Lahad Datu reduced our production and operational costs by between 10 and 20 per cent," he said.
Bahrul said this to reporters during a breaking of fast with orphans of Al-Aman Orphanage in Beaufort, Darul Bakti Orphanage Home in Kota Belud and Orphanage and Tahfiz Darul Yatama Yacob Khan in Membakut, in conjunction with Ramadan, at a hotel here on Monday night.
A total of 160 children from the three orphanage homes received CIS Ramadan contributions, including cash, which is part of the corporate social responsibility of the government-linked company.
Also present were Sedco Chairman cum Membakut Assemblyman Datuk Mohd Arifin Mohd Arif, CIS Sabah Chairman Datuk Yahya Lampong and other officials.
"We (CIS) are also fortunate to have long-term and good ties with the suppliers of the raw material for cement because they maintained their prices and did not overcharge us. Therefore, we managed to make profit.
"In addition, CIS is a GLC and therefore we must do our social obligation and cannot simply increase the cement price to generate better profit.
"Unless the raw material (for cement) price has increased, then we would have no choice but to transfer the costs to consumers," Bahrul said.
In the peninsula, he said, there are some full-fledged private companies that raised cement prices because they want to gain higher profit.
On the retail price in Sabah, Bahrul said a bag of 50kg cement is selling for about RM17 to RM18 in the market.
On cement supply, he assured that there is no shortage and that CIS is getting the clinker from the peninsula, Taiwan and Vietnam.