No excuse for CIS’ late response to cement crisis
Published on: Wednesday, November 22, 2023
Goh also called on the State Government to immediately intervene by understanding and identifying the operational challenges faced by CIS.
Kota Kinabalu: As Sabah’s main supplier of cement, Sabah Cement Industry Sdn Bhd (CIS) should have sufficient expertise and crisis management awareness to ensure stable long-term supply.
Federation of Chinese Associations Sabah (FCAS) President Tan Sri TC Goh said in the face of rising demand, the company should always be proactive to meet potential challenges.
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He was responding to the company’s late response to the local construction sector’s woe over acute shortage of supply, which was addressed only two months after the problem started.
“It (CIS) should have explained the situation earlier to affected businesses so that they could make necessary arrangements to avoid additional losses,” he said in a statement, Tuesday.
Goh stressed that to better cater to the long-term needs of infrastructure development and private sector, post pandemic, the company should promptly prepare and implement operational strategies, instead of continuing to adopt reactive measures.
According a statement by CIS, the recent cement shortage was due to a significant machinery breakdown in October which reduced its production by 40pc.
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It also blamed bad weather in Peninsula Malaysia and Vietnam affecting the shipping of raw materials to Sabah.
“We hope the company could take the recent episode as a lesson and ensure that cement supply would never again become an issue which hinders overall development and progress of the state,” said Goh.
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Goh also called on the State Government to immediately intervene by understanding and identifying the operational challenges faced by CIS.
He also proposed that the State Government consider allowing the import of cement as a temporary solution due to the critical situation.
Goh cautioned that the said issue if not properly and promptly addressed, could negatively impact the State Government’s Sabah Maju Jaya goals.
However, Goh, who is also a Sabah Economic Advisory Council (SEAC) member, acknowledged and looked forward to the company’s efforts in increasing production and supplying cement to the market.
He hoped it would temporarily alleviate the pressing situation faced by the construction sector.
Meanwhile, Sabah’s first private cement plant that began production in September managed to alleviate the shortage in Lahad Datu but unstable electricity supply has affected production targets.
“We decided there is no choice but order two new generators to enable round-the-clock cement production and they are due to arrive next week,” said a spokesman, lamenting SESB’s handicap in providing ample power supply to industries in the east coast.
He said the plant would have no problem complementing CIS and making up for the shortage in the domestic market.
“Our quality Sabah cement is something Sabahans can be proud of because it is of quality and price-competitive.
“Our long-term goal is to help the State Government achieve its Sabah Maju Jaya development agenda in the construction industry,” he said.
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