FMM PRESS STATEMENT: FMM WELCOMES EXPANSION OF SIMEN RAHMAH INITIATIVE, URGES BROADER PROMOTION OF MALAYSIAN-MADE BUILDING MATERIALS

KUALA LUMPUR, May 22, 2026 – The Federation of Malaysian Manufacturing (FMM) welcomes the expansion of the Simen Rahmah initiative by the Ministry of Housing and Local Government (KPKT), which offers cement at approximately 30% below prevailing market prices for affordable housing projects under the federal and state governments, as well as the private sector.

FMM views the expanded initiative as a timely and constructive step towards advancing the Government’s affordable housing agenda under the 13th Malaysia Plan (RMK13), while helping to alleviate cost pressures arising from rising input and construction costs. Under the expanded scheme, bulk cement will be offered at RM290 per tonne compared to the prevailing market price of RM425 per tonne, while standard 50kg bagged cement will be priced at RM17.50 per bag compared to RM24.90 per bag. These reductions are expected to ease cost burdens on developers and contribute towards improving housing affordability for homebuyers.

FMM recognises that cost pressures across the construction and manufacturing sectors continue to be influenced by global uncertainties, including volatility in energy prices and ongoing supply chain challenges. In this context, measures that help stabilise the cost of essential construction materials are critical in sustaining development activities and strengthening the resilience of the housing ecosystem. FMM believes that targeted interventions such as the Simen Rahmah initiative demonstrate the importance of practical and results-driven collaboration in addressing economic challenges while supporting national development priorities.

FMM further hopes that the concept can be progressively expanded to other locally manufactured construction materials that are essential in affordable and low-cost housing development, including ceramic tiles, steel, sanitaryware and other building materials. Such an approach could help moderate overall construction costs while creating broader benefits across the domestic manufacturing ecosystem. Increased adoption of locally produced materials would not only support domestic industries and strengthen local supply chains, but also enhance industry resilience, generate stronger economic multiplier effects and create employment opportunities within the country.

Beyond supporting affordable housing, initiatives of this nature can generate wider economic spillover effects throughout the construction value chain, strengthen demand for locally manufactured products and support the development of a more sustainable, resilient and competitive industrial ecosystem.

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Mr Jacob Lee Chor Kok
President, Federation of Malaysian Manufacturing
FMM Advocates Transparency, Integrity, Accountability and No Corruption

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About FMM
The Federation of Malaysian Manufacturing (FMM) (formerly known as Federation of Malaysian Manufacturers) has been the voice of the Malaysian manufacturing sector since 1968, advocating policies and initiatives that drive industrial growth, competitiveness and workforce development. Representing over 13,300 member companies (4,200 direct and 9,100 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-added services including training, business networking and trade opportunities as well as regular information updates.

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