Building material prices in Malaysia continued to trend higher in May 2026, with steel, sand, aggregates and cement all recording month-on-month increases, reflecting persistent cost pressures across the construction sector.
According to the latest Unit Price Index of Building Materials report released by the Department of Statistics Malaysia, steel prices rose across all regions in Peninsular Malaysia, Sabah and Sarawak, with monthly increases ranging between 0.1% and 1.3%.
Pahang recorded the sharpest increase in steel prices at 1.3%, followed by Sibu and Miri at 0.8% each.
Sand prices also moved higher nationwide, posting monthly increases of between 0.4% and 9.7%. Sandakan registered the steepest rise at 9.7%, while Johor and Sibu recorded gains of 3.7% respectively.
Aggregate prices similarly climbed across the country, increasing between 0.3% and 4.7% compared with April. Sandakan again led the increases with a 4.7% rise, followed by Selangor, Kuala Lumpur, Melaka and Negeri Sembilan at 3.9%, and Johor at 3.6%.
Meanwhile, cement prices recorded a more moderate increase, rising between 0.2% and 2.1% across all regions.
On a year-on-year basis, steel prices remained significantly higher compared with May 2025.
The steel price index increased between 1.1% and 10.0% across most regions, with Perak recording the largest annual rise of 10.0%. Johor followed with a 6.0% increase, while Selangor, Kuala Lumpur, Melaka and Negeri Sembilan posted a 4.1% rise.
Cement prices also registered annual growth, increasing between 1.0% and 7.5% nationwide.
Miri recorded the highest year-on-year increase at 7.5%, closely followed by Kuching at 7.4%. Perak and Pahang both posted increases of 6.9%.
Sand prices saw some of the strongest annual gains, with year-on-year increases ranging from 1.0% to 22.9% across Peninsular Malaysia, Sabah and Sarawak.
The report also showed an increase in average prices for key construction materials.
The average price of steel, comprising mild steel round bars and Mycon 60 high tensile deformed bars, rose 0.4% month-on-month to RM3,517.50 per metric tonne in May, compared with RM3,504.20 per metric tonne in April.
Ordinary Portland cement prices also edged up by 0.3%, with the average price reaching RM25.95 per 50kg bag, compared with RM25.90 in the preceding month.
The continued increase in construction material prices is likely to keep cost pressures elevated for contractors and developers, particularly as infrastructure and property projects progress amid ongoing demand for building materials nationwide.
