Malaysia exports construction materials to other countries especially Singapore which:
Creates an artificial shortage In the country
Drives the price high creating inflation and causing dissatisfaction to the local population against the govt for paying low salaries.
Damages local environment
Supports the competitor to develop F1 circuit, casinos etc.
Reply
Around 95% of clinker produced is consumed locally and around 5% of total clinker produced is exported.
There was no clinker export to Singapore in 2006.
Cement is a price controlled item under the purview of the Ministry of Domestic Trade and Consumer Affairs (MDTCA).
Export of cement is subject to Export License (AP) issued by MITI, issued after taking into account supply and demand of cement in the country. AP is maintained to ensure sufficient supply to meet the domesticdemand.
Artificial shortage of cement may occur from time to time due to:
panic buying in anticipation of shortage;
breakdown of plants;
distributors and traders stocking more than normal requirement; and
lack of ships to transport cement and adverse weather conditions disrupting shipments particularly to East Sabah.
The Ministry of Natural Resources and Environment (NRE) is responsible for the issuance of permits for the export of aggregates, limestone, granite and quarry dust in accordance with the Customs (Prohibition of Exports) (Amendment) (No. 2) Order 2007 under the Customs Act 1967. However matters pertaining to licenses (quarry and mining licenses) to extract these resources fall under the jurisdiction of state governments and local authorities.
The NRE and its agency, the Department of Minerals and Geosciences (JMG – Jabatan Mineral dan Geosains) are constantly monitoring the export of the above resources. At the moment, Malaysia does not face shortage of these resources. In fact JMG works close with state/local authorities to ensure that domestic needs are met first before these materials can be exported. If there is evidence of shortage of these materials/resources to meet local needs, then the state or states concerned will impose a ban on the exports of the said resources/materials. Presently the proportion of exports in comparison to the available reserves is insignificant.
The Government is committed to the principles of sustainable development of the country's natural resources. NRE has put in place various schemes and mechanisms to ensure that mining companies and quarry operators strictly adhere to the provisions/guidelines stipulated in the Mineral Development Act 1994 and State Mineral Enactments.Sustainable mining is the way forward.
Notwithstanding the abundance of natural resources available in Malaysia, NRE will take appropriate measures to safeguard national interests as reflected in the current ban on the export of natural sand (construction sand). In other words, if the need arises, the Government will not hesitate to take similar action with regard to the export of the resources/materials being mentioned.
