The cement industry in Malaysia is constrained by the construction industry. When the overall construction industry has a good development prospect, the cement industry is on the rise. If the development prospects of the overall construction industry are depressed, the cement industry will be hit by the market depression and therefore, the development of the cement industry has great uncertainty.
Since 2013, when China promoted the Belt and Road Initiative, Malaysia and China have focused the cooperation between the two countries on infrastructure construction with as many as 100 project agreements have been signed, which has brought a positive impact on Malaysia’s construction industry, and almost all of the enterprises involved in each major project believe that the development prospect will be supremely good. Unfortunately, our country’s political unrest in 2018, political instability and the society from all walks of life questions about the use of government finances. This leads Malaysia to suspend a lot of large cooperation projects. Companies who participated in the project were forced to shut down, thus facing the enterprise financial and data flow problems. The construction industry has registered huge losses. As a result, the cement industry was forced to influence.
In addition, we are now facing an epidemic. It forced businesses to face repeated closures and openings, thus for those cement companies who originally haven’t recovered from the 2018 hit facing a bleak prospect for development. There are not many cement producers in Malaysia, so the channels for resellers, agents and retailers in the market are extremely limited. Today, the difficulties faced by cement companies directly affect the small and medium-sized enterprises that have business dealing with them.
It can be seen that the development of small and medium-sized enterprises in Malaysia needs the support of government policies if they are willing to survive during the epidemic period. Otherwise, when the epidemic is completely eliminated, the development situation of small and medium-sized enterprises in Malaysia will be in a desperate state.
As well as being used in local construction, cement Malaysia is also exported to foreign countries. The sad thing is that Malaysia’s export market for cement has also been limited as foreign demand for cement has shrunk due to the growth of their own cement production and the slow development of the construction industry.
By hook or by crook, it is hoped that various projects can be started smoothly when the epidemic is over, so that the whole industry, whether it is the construction industry or the cement industry, can be revitalized.