Dear friends

 Yesterday SP Setia share price went down due to Battersea problem

However, that is only one of the problems

The real reason?

See

Diesel Price Hike Drives 30% Surge in Construction Costs, Claims PKBM

The construction industry in Malaysia is facing unprecedented cost increases, with the price of construction goods surging by nearly 30% following a recent hike in diesel prices, says Datuk Azman Yusoff, president of the Bumiputera Contractors Association of Malaysia (PKBM).

Azman described this spike as the highest in the country’s history. Suppliers have begun setting new rates for construction materials, effective since June 10.

Azman noted that suppliers have threatened to halt deliveries if the new pricing proposals are not adhered to. This move has led to calls for immediate intervention from the Malaysian Construction Industry Development Board (CIDB) and the Ministry of Domestic Trade and Cost of Living (KPDN) to monitor and address potential exploitative practices by suppliers capitalising on the diesel price change.

He said the impact of this price surge is most acutely felt by contractors classified from G1 to G7. These classifications, determined by CIDB, are based on contractors’ financial capacity and project-handling abilities. Azman highlighted to Sinar Harian that the rising costs could lead to significant delays in project completion and substantial financial losses for contractors.

See Calvin's comments

calvintaneng

not just that

in Malaysia now got 52% diesel price rise

all cement, steel, construction material will rise by 5% to 10% and eat into  property profits

15 hours ago

calvintaneng

https://malaysia.news.yahoo.com/putrajaya-sets-diesel-pump-ceiling-101817577.html

15 hours ago

calvintaneng

only East Malaysia exempted 52% diesel price hike

go for Sarawak and Sabah stocks

like Tsh Resources.

rsawit

wtk

Sop

Taann

thplant got lands in Sarawak for sale

15 hours ago

calvintaneng

Fall in property stocks chain effect like dominoes falling

Next will hit construction stocks

They will face less jobs from property developers

Plus cost of extra 52% for diesel will eat into construction co profit just like property if cannot pass on cost

Locked in deals must be renegotiated or suffer unforeseen losses

15 hours ago

calvintaneng

After

Property

Then construction

After that construction material like steel and cement will be impacted by high cost input as raw material like iron ore, coal also rise due to high diesel

15 hours ago

calvintaneng

After that will be toll road

Less Diesel lorries will ply toll road or they carry more goods to make more

Wce holding and other toll roads will be impacted

15 hours ago

calvintaneng

Then logistic co

Those who deliver goods by e commerce or mails will need to raise prices

The chain effect cascade down

Only Sarawak and Sabah no disel price rise are spared unless

Unless?

Unless they import goods from Peninsular

These ships will also see diesel price rise

So East Malaysia that depend on imports from Peninsular will also be impacted by higher costs

Only those that are self sufficient in East Malaysia still ok

15 hours ago