REHDA Urges For Further Liberalisation on Steel Bars, Rods and Wires

The Honorable Prime Minister’s announcement on May 12 2008 for the liberalization of steel products was a welcomed and much-anticipated for decision as the price control mechanism had been abolished and imports of these products were allowed without the requirement of APs.   However, to the disappointment of the industry, this liberalization seems to favor manufacturers rather than the construction industry due to the escalation of steel bar prices. 

The Real Estate and Housing Developers’ Association Malaysia (REHDA) therefore strongly urges the Government to review the liberalization to further liberalize all steel bar items under HS Code 7214 and all steel rod items under HS Code 7213 as currently AP exemption is limited only to two items i.e. steel bars under HS code 7214 10 110 and 7214 20910.

It is crucial for the government to liberalize other steel bars under HS Code 7214 and steel rod items under HS Code 7213 as these items are mainly used in the construction of low and medium cost housing and pre-fabricated components under the Industrialized Building System (IBS). 

REHDA is also urging the Government to impose a restraint export tax on all billets and steel bars as highlighted by the Master Builders Association Malaysia (MBAM).

‘’If liberalization is so limited and narrow, the impact of liberalization would be totally nullified and the construction industry would be back at square one where steel products are concerned, thus resulting in the industry being uncompetitive,” adds Mr. Ng.

REHDA would like to inform that a hotline at 03 7880 8000 has been set up for the industry to highlight and raise issues concerning building materials including steel bars.  REHDA welcomes and appreciates any feedback relating to the issue which could facilitate possible solutions.

Issued by:

Mr Ng Seing Liong, JP

黄腾亮局绅
PRESIDENT
REAL ESTATE AND HOUSING DEVELOPERS’ ASSOCIATION MALAYSIA