KUALA LUMPUR: Rising steel and cement prices are adding to construction cost pressures, with cement recording an annual increase of up to 7.4 per cent in September.
Steel prices climbed as much as 5.1 per cent in selected areas, according to the Statistics Department.
The department said the steel unit price index rose between 0.1 per cent and 5.1 per cent year-on-year (YoY), with Perak recording the steepest increase at 5.1 per cent, followed by Johor at 4.8 per cent and Tawau at 3.8 per cent.
"The cement unit price index increased by between 0.6 per cent and 7.4 per cent nationwide," it said in its latest special release on building and structural works.
Selangor, Kuala Lumpur, Melaka and Negri Sembilan recorded the highest annual increase in cement prices at 7.4 per cent, followed by Kuching at seven per cent and Miri at 6.6 per cent.
However, monthly movements presented a more mixed picture, with some building materials easing in price.
On a month-on-month (MoM) basis, the cement unit price index rose between 0.3 per cent and 1.9 per cent in selected areas in September.
The steepest increase was recorded in Selangor, Kuala Lumpur, Melaka and Negri Sembilan at 1.9 per cent, while Kota Kinabalu and Kuching registered increases of 0.3 per cent.
In contrast, the sand unit price index fell by 0.7 per cent in Selangor, Kuala Lumpur, Melaka and Negeri Sembilan, and by 0.5 per cent in Perak and Johor.
Steel prices also retreated month-on-month, with the unit price index declining between 0.2 per cent and 1.6 per cent across selected areas.
Johor recorded the sharpest drop at 1.6 per cent, followed by Sibu and Miri at 1.3 per cent.
The average price of Ordinary Portland cement remained unchanged at RM25.80 per bag in September.
The average price of steel, comprising mild steel round bars and Mycon 60 high-tensile deformed bars, fell 2.4 per cent to RM3,431.90 per tonne from RM3,484.20 in August.
The contrasting price movements suggest that while some construction material costs have moderated monthly, cement and steel prices remain higher than a year ago in several areas.
Building material prices are closely watched by developers and contractors because they influence construction budgets, project margins and the cost of delivering new homes and commercial properties.
Persistent cost increases can complicate project planning, particularly for developments operating on tight margins.
The latest figures come amid complaints from developers and contractors that rising input costs are squeezing margins.
Industry groups have warned that broad national price indices may not fully reflect expenses incurred on the ground.
The Real Estate and Housing Developers' Association Malaysia reportedly said in September that 81 per cent of surveyed developers experienced higher business costs in the first half of 2026, up from 74 per cent in the second half of 2025.
Construction costs had risen by an average of about 13 per cent.
Earthworks and infrastructure costs jumped 20 to 30 per cent, although increases for conventional building works ranged between three and five per cent.
The department also reported that the building cost index incorporating steel bars declined month-on-month across building categories, easing by between 0.1 per cent and 1.3 per cent in Peninsular Malaysia.
In Sabah, the index fell between 0.1 per cent and 0.7 per cent across all building categories, while Sarawak recorded declines ranging from 0.1 per cent to 0.5 per cent.
© New Straits Times Press (M) Bhd