CEMENT producers have been asked to explain their reasons for increasing prices of the scheduled controlled item, said Domestic Trade and Consumer Affairs Minister Saifuddin Nasution Ismail.

He added that his ministry has issued notices under the Price Control and Anti-Profiteering Act to 19 cement producers nationwide to account for their actions.

“They have seven days to respond to us, to give us their reasons for the price hikes, as well as supporting documents for the past three years.

“If we are not satisfied, we will take action against them,” he said after an event today, adding that cement producers had raised prices without informing the government.

“They must inform my ministry to get approval first and failure to do so can result in a penalty,” he said.

It was previously reported that suppliers had notified customers that cement prices would go up by between 40 and 50% on June 15 or July 1.

The Cement and Concrete Association of Malaysia said that over the past few years, the industry had been suffering from an increase in electricity tariffs, increase in packing materials and rising costs from imported fuel, materials, engineering spares and equipment.

“While the industry has been absorbing these increases, cement prices in Peninsular Malaysia have been on a downward trend since 2016 and have reached a level that is not sustainable.

“Collectively, the cement industry provides hundreds of thousands of jobs directly and indirectly.

“These jobs will be put at risk if the industry continues to operate at a loss,” the association said. – June 19, 2019.