Building Material Cost Index rises in October

KUALA LUMPUR: The Building Material Cost Index (BCI) (without steel bars and with steel bars) had increased in October 2021, rising by between 0.1 and 2.3 per cent in Peninsular Malaysia.

In a statement yesterday, the Department of Statistics Malaysia (DOSM) said the BCI also rose in Sabah (between 0.1 and 2.1 per cent), and in Sarawak (between 0.1 and 1.5 per cent).

Steel prices were higher during the month, with Perak recording the highest increase at 3.4 per cent, followed by Sandakan (2.7 per cent), Miri (2.6 per cent), Selangor and the Federal Territory of Kuala

Lumpur (2.2 per cent), Sibu (0.5 per cent) and Kuching (0.1 per cent).

Meanwhile, Pahang showed the highest increase in terms of cement prices (2.0 per cent), followed by Perak (1.2 per cent).

Steel and metal sections for Miri and Sandakan also increased by 3.3 per cent and 2.3 per cent, respectively.

“The increase in the price of building materials, including cement, steel and iron materials, was due to the increase in the price of coal and petroleum products globally.

“Building materials became more expensive after construction activities resumed, due to the government’s implementation of the Movement Control Order in June 2021 and the four phases of the National Recovery Plan,” it said.

The government had allowed construction-related activities to resume starting Oct 22, 2021.

“Following the increase in the price of building materials, especially steel and cement, the Malaysian Public Works Department suggested for the Ministry of Finance to extend the Variation of Price until next year to make sure that government projects are not affected and can be completed on schedule,” added DOSM.