Datuk Sr Chua Soon Ping
Kota Kinabalu: Sabah Housing and Real Estate Developers Association (SHAREDA) fully supports the State Government’s decision to temporarily bar the export of scrap iron going out of Sabah.
Its President, Datuk Sr Chua Soon Ping, said the association agrees that the temporary ban will ensure sufficient raw material supply for the local steel and construction industry.
He said this today in response to the announcement made by Sabah Chief Minister Datuk Seri Hajiji Haji Noor on the temporary ban on export of scrap iron.
“With sufficient supply of raw material, we no longer need to import them at an inflated price, which will in turn stabilise the price of billets and rebars. Billets and rebars are key ingredients in the construction industry,” said Chua.
“When the supply and cost of construction materials are stabilised, we become less reliant on imports, the savings will be directly reflected on the house prices for the people in Sabah.” he added.
He said the temporary ban is also likely to encourage the growth of downstream industries to the steel industry, adding that value-added products can be manufactured, and it will create more job opportunities for Sabahan.
With an abundant supply of raw material, local manufacturers can also increase production thus
achieving economies of scale. The ripple effect and economic impact is huge, encouraging more investment as well as employment, which is particularly needed at this time.
“Besides optimising the price and supply of steel in Sabah, we also hope the Government will also look into stabilising the price of other construction materials, such as cement.
“The cost of construction materials in Sabah has always been higher than that in Peninsular Malaysia, which resulted in a higher house price here.
“If we can find ways to optimise the supply chain of all construction materials, such as by reducing the layers of middlemen, it will effectively bring down the cost of supply, which will benefit the property development as well as the construction of infrastructure in the State.
“We are confident with the State leadership in introducing policies to revive the economy of Sabah.” said Chua.
