Malaysia Cement Prices Rise Up to 1.7% in January 2026
Construction Sector Faces Renewed Cost Pressure
PETALING JAYA, Feb 11 – Malaysia’s construction industry entered 2026 on a cautious note as cement prices recorded an increase of up to 1.7% in January, adding fresh pressure to project cost structures nationwide.
Latest figures released by the Jabatan Perangkaan Malaysia (DOSM) indicate that the unit price index for cement rose between 0.2% and 1.7% compared with December 2025. The highest increases were observed in Selangor, Kuala Lumpur, Melaka and Negeri Sembilan at 1.7%, followed by Perak at 1.6% and Sandakan at 0.8%.
While the percentage movement may appear moderate, cement remains a foundational material in nearly all construction categories, from residential developments to large-scale infrastructure projects. Even marginal increases can significantly affect overall project budgeting.
Diverging Trends Between Cement and Steel
Interestingly, the rise in cement prices contrasts with the downward trend recorded in steel and metal products. The unit price index for steel declined between 0.6% and 3.0% month-on-month.
On average, steel prices — including mild steel round bars and Mycon 60 high tensile deformed bars — fell by 1.7% to RM3,454 per metric tonne compared with RM3,512.10 in December.
On a year-on-year basis, steel prices dropped between 1.1% and 7.6%, with Miri recording the steepest decline. Kuching, Sibu and Kota Kinabalu also registered notable reductions.
Cement, however, maintained an upward trajectory annually. Compared with January 2025, cement prices increased between 0.4% and 5.9% across the country. Pahang recorded the highest annual rise at 5.9%.
The average price of Ordinary Portland cement now stands at RM25.30 per 50kg bag, reflecting a 3.1% increase from RM24.55 in the previous month.
Impact on Building Material Cost Index
These movements were reflected in the Building Material Cost Index (BCI). In Peninsular Malaysia, the BCI including steel bars increased between 0.1% and 0.6% across all building categories. Sabah saw marginal increases, while certain categories in Sarawak recorded slight declines.
For contractors, the renewed rise in cement prices could strain margins, particularly for projects secured under earlier tender pricing. Developers may need to reassess cost assumptions or adjust pricing strategies to maintain profitability.
With infrastructure rollout continuing and housing demand gradually stabilising, material cost volatility remains a key variable influencing Malaysia’s construction outlook in 2026.
-wilayah.com.my
