KPKT expands Rahmah Cement Scheme under 13MP, cuts prices by up to 30%

PETALING JAYA (May 20): The Housing and Local Government Ministry (KPKT) has announced the continuation and expansion of the Rahmah Cement Scheme under the 13th Malaysia Plan (RMK13), offering subsidised cement at up to 31.8% lower prices for affordable housing projects nationwide.

Housing and Local Government Minister Nga Kor Ming said, in a press statement today, that the expansion now covers affordable housing projects under the supervision of the Federal Government, state governments, and private developers.

He said the initiative is part of the Madani government's ongoing efforts to address challenges arising from the global energy crisis following the ongoing conflicts in West Asia.

“KPKT intends to continue the Rahmah Cement initiative and offer cement at lower-than-market prices specifically for affordable housing projects.

“Through this initiative, we hope developers will continue to support the Madani Government’s agenda of providing quality affordable homes, despite rising construction costs due to the global energy crisis linked to conflicts in West Asia,” he said in a statement today.

Under the expanded scheme, key public housing projects such as the People's Residency Programme (PRR), developments under Syarikat Perumahan Negara Bhd (SPNB) and Perbadanan PR1MA Malaysia (PR1MA), as well as various state-level housing schemes, will benefit from subsidised cement pricing, as follows:

(i) Bulk cement: RM290 per tonne — a saving of 31.8% or RM135 against the market price of RM425 per tonne
(ii) Bagged cement (50kg): RM17.50 per bag — a saving of 29.7% or RM7.40 against the market price of RM24.90 per bag

A total of 1.6 million metric tonnes of cement has been allocated under the initiative to support RMK13’s target of delivering 500,000 affordable homes over five years.

KPKT said the cost savings are intended to stabilise house prices, reduce the risk of sick or abandoned projects, and ensure construction quality is not compromised.

The Rahmah Cement Scheme was first introduced in April 2023 through a strategic collaboration with the Cement and Concrete Association of Malaysia (C&CA).

Since its introduction, 29 affordable housing projects have been approved under the scheme, involving 1,560,329 bags and 316,918.22 metric tonnes of cement, supporting the construction of 11,909 housing units.

The initiative has generated estimated cost savings of RM45.8 million, including RM38 million from bulk cement and RM7.8 million from bagged cement.

“This is an example of synergy between the Madani Government and the private sector in prioritising people’s welfare, in line with the 4P principle: People-Public-Private Partnership,” Nga added.

If demand continues to rise, the government said it is prepared to increase the allocation by up to one million additional metric tonnes, subject to ongoing cost considerations and periodic negotiations with C&CA to ensure industry sustainability.

To ensure transparency and prevent leakages, applications for the scheme will be fully digitised through the Housing Integrated Management System (HIMS) under the National Housing Department (JPN).

The expanded Rahmah Cement Scheme forms part of the broader Housing Reform Agenda announced by KPKT in November last year, reflecting the government's commitment to strengthening the national housing ecosystem and safeguarding the people from global economic uncertainty.

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