Malaysia's Ministry of Housing and Local Government (KPKT) announced the expansion of the Simen Rahmah scheme on May 20-21, 2026, allocating 1.6 million metric tonnes of cement to support construction of 500,000 affordable homes nationwide under the 13th Malaysia Plan (13MP) starting June 1 [1, 2, 3, 4].
Under the scheme, bulk cement will be sold at RM290 per metric tonne, about 31.8% to 32% below the current market price of RM425 [1, 3, 4]. Bagged cement (50kg) will cost RM17.50 per bag, roughly 29.7% to 30% cheaper than market prices ranging from RM22.50 to RM24.90 per bag [1, 3, 4].
The program covers affordable housing projects across federal, state, and private sectors, including developments by PR1MA Corporation Malaysia, Syarikat Perumahan Negara Berhad (SPNB), and eligible private developers [1, 3, 4]. The scheme aims to help reduce rising construction costs caused by global energy crises and geopolitical tensions, stabilizing affordable housing prices and preventing stalled or abandoned projects [1, 3, 4].
Since the initial launch in April 2023, the Simen Rahmah scheme has supported about 11,909 affordable homes using 317,000 metric tonnes of cement, generating construction savings of approximately RM45.8 million [1, 2].
All applications under the scheme will be fully digitized and monitored through the Housing Integrated Management System (HIMS) managed by the National Housing Department to enhance governance and prevent fraud [1, 3, 5, 4]. The ministry warned that misuse of subsidised cement, such as resale for profit, will lead to lifetime blacklisting of companies and individuals, including revocation of Developer's Licences and Advertising Permits. Housing Minister Nga Kor Ming stated, "Whoever these irresponsible parties are, they will be blacklisted by the ministry forever...There will be no more Advertising Permit and Developer's Licences (APDL) for them" [5].
Rehda President Datuk Ho Hon Sang praised the continuation of the scheme amid rising material costs, saying, "We thank KPKT for their concern by proactively continuing the initiative amid rising construction material costs and ongoing global economic pressures affecting supply chains" [2].
Minister Nga Kor Ming emphasized, "Our mission is clear: people's housing must remain affordable. This synergy between the public and private sectors is a concrete step to ensure the cost of living remains manageable despite global economic uncertainties" [6].
