I believe this is a good news for the construction industry.It is better for the government to pay extra so that contractors can deliver the projects.
Friday May 9, 2008 MYT 7:17:31 PM
No more ceiling price for steel
PUTRAJAYA: The ceiling price on steel will be abolished effective Monday.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said with the abolishment, contractors for conventional projects under the Government could now apply for a change in the price of their contract based on the market price for steel.
"Importers of steel will now be exempted from applying for an import licence and paying import duties. Local steel manufacturers will be allowed to export their products.
"The Government has received many complaints relating to the rising prices of steel products, such as steel billet and bars, in the wake of the difficulty of obtaining supply fixed at the ceiling price.
"This is because the global price for steel is now higher than that in the local market. This has given a negative impact on the construction industry, where it will affect the implementation of the country's development projects," he said Friday in a statement here.
This, according to Abdullah, was the reason the Cabinet decided to liberalise the prices of steel products.
The liberalisation, he said, was in line with the Government's intention to ensure that the country's development process proceeded smoothly.
"It will also ensure that the market for steel products is more transparent and efficient," he said.
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