Simen Rahmah scheme continues with 1.6 million tonnes cement allocation for affordable housing, says minister

“PUTRAJAYA, May 20 — The Simen Rahmah Scheme will continue this year with 1.6 million metric tonnes of cement allocated to support the target of building 500,000 affordable housing units under the 13th Malaysia Plan (13MP). Housing and Local Government Minister Nga Kor Ming said the scheme, which offers cement at prices lower than the market rate, has also been expanded to cover affordable housing projects under the Federal Government, state governments and the private sector. “The Simen Rahmah initiative is a critical component of the government’s commitment to ensure the housing sector does not come to a halt because the property sector is one of the pillars of the national economy,” he said at a press conference after launching the Simen Rahmah 2026 Initiative here today. Through the expanded scope of the scheme, Nga said development projects under Syarikat Perumahan Negara Berhad (SPNB) and Perbadanan PR1MA Malaysia (PR1MA), as well as various housing schemes under state governments, will benefit from cost protection through the retention of subsidised cement prices. This includes bulk cement priced at RM290 per tonne, representing savings of 31.8 per cent or RM135 compared with the market price of RM425, while bagged cement (50kg) is priced at RM17.50 per bag, offering savings of 29.7 per cent or RM7.40 compared with the market price of RM24.90. “The first phase of the Simen Rahmah initiative will provide 1.6 million metric tonnes of cement to support affordable housing projects priced at RM300,000 and below per unit. By stabilising cement costs, we are providing breathing space for developers to maintain lower selling prices without compromising construction quality. “These cost savings act as a mechanism to control house prices, an early intervention to prevent the risk of sick or abandoned projects, and ensure the quality of homes for the people is not compromised,” he said. To ensure there is no leakage, he said applications for the scheme will be fully coordinated through the Housing Integrated Management System (HIMS) by the National Housing Department (JPN) to ensure all eligibility criteria are strictly complied with. Nga said the initiative is also part of the Madani Government’s proactive efforts through the Ministry of Housing and Local Government in addressing the global supply crisis challenges arising from the West Asia conflict. “In view of the latest global developments, the ministry has taken proactive steps to continue this initiative as a direct response to rising building material costs and global economic challenges that are increasingly pressuring supply chains,” he said. In April 2023, the ministry introduced the Simen Rahmah Scheme through a strategic collaboration with the Cement and Concrete Association of Malaysia (C&CA). The scheme has recorded tangible success, with 29 affordable housing development projects approved involving the use of 1,560,329 bags and 316,918.22 metric tonnes of cement. — Bernama

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