Nga said the expanded Skim Simen Rahmah initiative, set to begin on June 1, is aimed at keeping affordable housing projects viable amid rising costs caused by global geopolitical tensions and supply chain disruptions.

“Let me make it very clear: this is a special effort. I Googled it just now. No other government in this world has done this except the Madani government.

“Look at Singapore or the US. No one has done this. We are the only ones,” he said at the launch of the expansion here today.

Skim Simen Rahmah is a public-private initiative between the housing and local government ministry and the Cement and Concrete Association of Malaysia to provide discounted cement for affordable housing projects.

Under the latest expansion, 1.6 million tonnes of cement will be supplied for affordable housing projects nationwide. The bulk price of cement will be fixed at RM290 per metric tonne, about 32% lower than the current market price of RM425 per metric tonne.

For smaller contractors, 50kg bags of cement will be priced at RM17.50 each, compared with the market price of nearly RM25.

“The people’s housing must remain affordable. Construction material costs must be controlled so that developers and contractors prioritise the welfare of the people, especially first-time homebuyers,” he said.

Nga said the initiative was only for affordable housing and would not apply to high-end developments.

The scheme was announced in April 2023 for affordable private housing developments priced at RM300,000 and below, with one million tonnes of bulk cement offered at RM290 per metric tonne compared with the then market price of RM410.

He warned developers and contractors against abusing the scheme by reselling the discounted cement.

“If they are caught, I will exercise my power to blacklist the developers and contractors for life. I am not only going to blacklist the companies, but also the directors,” he said.