East Malaysia Sees Rising Building Material Costs In August, DOSM

Malaysia’s building material costs showed mixed trends in August 2026, with sand and cement prices increasing in several regions while steel prices declined month-on-month in selected areas, according to the Department of Statistics Malaysia (DOSM).

In its Special Release for Building and Structural Works, August 2026, DOSM said the unit price index for sand increased between 0.3% and 7.7% from July.

Kota Kinabalu recorded the sharpest increase at 7.7%, followed by Perak at 2.4%. Selangor, Kuala Lumpur, Melaka and Negeri Sembilan, as well as Sibu, recorded increases of 0.3%.

In contrast, the unit price index for steel declined between 0.3% and 2.4% in selected areas. The largest decrease was recorded in Selangor, Kuala Lumpur, Melaka and Negeri Sembilan at 2.4%, followed by Perak at 1.3% and Pahang at 0.7%.

The average price of steel, comprising mild steel round bars and Mycon 60 high-tensile deformed bars, slipped 0.3% to RM3,484.20 per metric tonne, from RM3,496.10 in July.

Cement prices moved in the opposite direction, with the unit price index increasing between 0.3% and 0.9% across selected areas.

Kota Kinabalu registered the largest month-on-month increase at 0.9%, followed by Selangor, Kuala Lumpur, Melaka and Negeri Sembilan at 0.4%, while Terengganu and Kelantan recorded a 0.3% rise.

The index was unchanged across most other areas in Peninsular Malaysia, Sabah and Sarawak.

The average price of Ordinary Portland cement rose 0.3% to RM25.80 per 50kg bag in August from RM25.70 in July.

On a year-on-year basis, steel prices remained higher across most areas, with the unit price index increasing between 0.2% and 6.9%. Perak recorded the largest rise at 6.9%, followed by Johor at 6.4% and Tawau at 3.8%.

Cement recorded broader annual increases, with its price index rising between 0.6% and 6.7% across all areas in Peninsular Malaysia, Sabah and Sarawak. Kuching posted the highest increase at 6.7%, followed by Miri at 6.6% and Kelantan and Terengganu at 5.9%.

DOSM said the Building Material Cost Index (BCI) with steel bars for building categories in Peninsular Malaysia declined between 0.1% and 1.1% month-on-month in August.

Sabah, however, recorded increases of between 0.1% and 3.4% across all building categories, while Sarawak registered more moderate increases ranging from 0.1% to 0.4%.

The latest figures point to differing construction cost pressures across Malaysia, with Peninsular Malaysia benefiting from softer steel-related costs while parts of Sabah and Sarawak continued to see increases in building material costs.

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