Malaysia's Building Costs Diverge in August as East Malaysia Sands and Cement Climb and Peninsular Steel Eases

Key figures

• ●Building Cost Index with steel bars fell 0.1%-1.1% month on month in Peninsular Malaysia, but rose 0.1%-3.4% in Sabah and 0.1%-0.4% in Sarawak (DOSM, via Nanyang Property, Bernama and The Star)
• ●Sand unit price index rose 0.3%-7.7% month on month, with Kota Kinabalu the highest at 7.7% and Perak at 2.4%
• ●Average steel price fell 0.3% month on month to RM3,484.20 per tonne, though it was still higher than a year earlier, led by Perak at 6.9% and Johor at 6.4% (New Straits Times)
• ●Cement unit price index rose as much as 0.9% month on month and 0.6%-6.7% year on year, with Kuching highest at 6.7%; a 50kg bag of Ordinary Portland cement averaged RM25.80 (The Star; NST)

News summary

Malaysia's building material prices moved in different directions in August 2026, with sand and cement costing more in parts of East Malaysia while steel prices eased across much of Peninsular Malaysia, according to the Department of Statistics Malaysia (DOSM). Nanyang Property reported that the Building Cost Index (BCI) with steel bars fell by between 0.1 per cent and 1.1 per cent across building categories and regions in Peninsular Malaysia on a month-on-month basis. In contrast, DOSM data carried by BernamaBiz and The Star showed the BCI rose by between 0.1 per cent and 3.4 per cent in Sabah and by between 0.1 per cent and 0.4 per cent in Sarawak.

Sand recorded the sharpest regional increase. The unit price index for sand rose by between 0.3 per cent and 7.7 per cent month on month, with Kota Kinabalu the highest at 7.7 per cent, Nanyang Property and The Star reported. Perak followed at 2.4 per cent, while Selangor, Kuala Lumpur, Melaka, Negeri Sembilan and Sibu each recorded an increase of 0.3 per cent.

Steel moved the other way during the month. The unit price index for steel declined by between 0.3 per cent and 2.4 per cent across selected areas, with the largest fall in Selangor, Kuala Lumpur, Melaka and Negeri Sembilan at 2.4 per cent, followed by Perak at 1.3 per cent and Pahang at 0.7 per cent. The New Straits Times reported that the average price of steel — covering mild steel round bars and Mycon 60 high tensile deformed bars — slipped 0.3 per cent to RM3,484.20 per tonne from RM3,496.10 in July. On a year-on-year basis, however, steel was still dearer than a year earlier; the New Straits Times said Perak posted the biggest annual rise at 6.9 per cent, followed by Johor at 6.4 per cent.

Cement prices edged higher. The unit price index for cement rose by between 0.3 per cent and 0.9 per cent month on month, with Kota Kinabalu highest at 0.9 per cent, followed by Selangor, Kuala Lumpur, Melaka and Negeri Sembilan at 0.4 per cent and Terengganu and Kelantan at 0.3 per cent, according to Nanyang Property and the New Straits Times. The average price of Ordinary Portland cement rose 0.3 per cent to RM25.80 per 50kg bag from RM25.70 in July. On an annual basis, The Star reported that cement's unit price index increased by between 0.6 per cent and 6.7 per cent nationwide, led by Kuching at 6.7 per cent, Miri at 6.6 per cent and Kelantan and Terengganu at 5.9 per cent.

The divergence leaves construction cost pressure unevenly spread. Nanyang Property framed the data as showing continued increases in sand and cement in parts of Sabah and Sarawak, with Sabah under the most pressure, while Peninsular Malaysian builders saw some relief from softer steel prices. DOSM's BCI for Sabah rose across all building categories, while Sarawak's increase was milder, and the Peninsular index eased in places. Because building materials are a key input to development and renovation costs, the figures are closely watched by developers, contractors and homebuyers.

This summary draws on the August 2026 building material price report as carried by Nanyang Property, Bernama (via BernamaBiz) and The Star, together with the New Straits Times report on the same DOSM data.