KUCHING, July 14 — Sarawak needs to strengthen its cement supply chain to meet the shortfall brought about by numerous ongoing major development projects, Premier Tan Sri Abang Johari Openg said today.

He said the demands for cement in Sarawak are more than the supply can cope with.

"Therefore, there is a shortfall in supply,” he told reporters after witnessing the signing of a Memorandum of Understanding (MoU) between Innocement Sdn Bhd and SCG International of Thailand and between Innocement Sdn Bhd with YTL Cement Bhd here.

Earlier in his speech, Abang Johari said the construction works value for Sarawak averages RM3.45 billion per quarter against the national average of RM29 billion per quarter, during the last 32 months.

He said the demand for cement in Sarawak has surged and will continue to remain high as a total of 960 projects, are in various stages of completion, with a total sum value of nearly RM46 billion has been allocated for Sarawak’s infrastructure development.

The premier said the state requires a reliable and adequate supply of construction materials to ensure the timely completion of all these projects.

He added delays would result in additional costs and impact the lives of Sarawakians, especially for critical projects such as schools, hospitals and infrastructure.

"The shortages and disruption of supplies tend to result in an escalation of prices to the point that budgets need to be revised and additional funds required,” he said.

The premier said cement accounts for 3 to 7 per cent of construction costs, adding that it is among the most consumed material in the world.

He said Sarawak has an underdeveloped cement industry with a minimal number of players.

"It is imperative for the development of Sarawak, to reduce the risk of total dependence on a single supplier, to create a healthy competitive environment — that new blood be injected into the state’s cement industry,” he said.

Under the collaboration, SCG International and YTL Cement will ensure long-term supply reliability and stability of cement prices in Sarawak.