Sabah Housing and Urban Development Authority chairman Masiung Banah is worried that developers may pass the escalating cost of building materials on to buyers.

He said the authority was concerned over the surging prices of construction materials such as cement, bricks, fertilisers and timber, which have recorded significant increases since January, Bernama reported.

Masiung said transport and logistics costs, particularly those related to sending cargo from vessels at Port Klang to Sabah, were also contributing to the hike in prices.

The Kuamut assemblyman said coordinated action was needed among government agencies, developers, suppliers and buyers.

“For example, government subsidies for certain materials could be increased. This may help stabilise material prices in the short term,” he said.

He said the government could set ceiling prices for construction materials, but even then, commercial housing and building project developers may need to reduce their project scope to stay within budget.

Masiung warned that such cost-cutting measures could compromise building quality and safety.

He identified three key factors behind the increase in building material prices – global supply chain disruptions, rising demand for mega infrastructure projects, and higher labour costs.

He urged the government against imposing new taxes on property developers, cautioning that this would further raise the cost of developing residential and commercial properties.