The DOSM Building Materials Cost Index and CIDB data for 2025–2026 show a split picture: cement prices are trending up 2–6% year-on-year, while steel has fallen 3–7% YoY. This guide anchors those figures and explains what is driving each category.
This article presents indicative price trend data for general reference. Actual material prices vary by supplier, region, quantity and specification. Get a project-specific quote on WhatsApp.
The narrative of “construction materials all rising together” is inaccurate for Malaysia in 2026. The data shows a split market: some materials are modestly higher, one major category is lower, and the sharpest verified cost driver is not material prices at all but diesel-powered logistics. Getting this distinction right matters for budgeting and for understanding where future cost risk sits.
The primary data sources used in this article are:
The Department of Statistics Malaysia publishes the Building Materials Cost Index (BMCI) monthly, tracking price changes for a basket of construction materials by state. The index provides the most authoritative publicly available data on construction material cost trends in Malaysia.
Key December 2025 BMCI readings relevant to renovation:
(Source: Dept of Statistics Malaysia, BMCI December 2025; CIDB BMCI.)
Cement is the most widely used construction material in Malaysia and the one experiencing the clearest upward price pressure in 2026. The DOSM BMCI records a +2.0–6.1% year-on-year increase as of December 2025, with states in the East Coast corridor (notably Pahang at +6.1%) showing the steepest gains, likely reflecting higher logistics costs to inland destinations.
Why is cement rising?
For renovation projects, cement price increases feed into tiling mortar, screeding, plastering, structural repairs, and any reinforced-concrete extension works. The 2–6% YoY increase is real but not dramatic; a RM50,000 renovation with 20% cement-content materials faces roughly RM200–RM600 of cement-inflation cost — manageable, not budget-breaking.
Steel reinforcement bars (rebar) — the key structural material for reinforced-concrete buildings — have been falling in price in Malaysia through 2025 and into 2026. The CIDB BMCI records a year-on-year decline of 3.2–7.1%, with an average rebar price of approximately RM3,512 per tonne (Source: CIDB BMCI, December 2025).
Why is steel falling?
For renovation purposes, cheaper steel is most relevant for: structural extensions (beams, columns, slabs); roof structures (purlins, trusses); and metal stud wall partitions. Standard residential renovation — tiling, painting, cabinetry, bathroom fit-out — uses relatively little structural steel, so the benefit is more pronounced for landed-home extensions than for condo refurbishments.
Several common renovation materials are derived from petroleum or petrochemical feedstocks:
These materials track global crude oil prices, petrochemical feedstock costs, international shipping freight, and the MYR/USD exchange rate — not the Malaysian retail pump price. A rise in RON95 or diesel at the Malaysian pump does not directly translate into more expensive paint or PVC pipe; what matters is global naphtha and ethylene prices and the currency rate at which Malaysia imports finished goods.
As of early 2026, global crude is mixed and shipping freight has normalised from 2021–2022 peaks. MYR has strengthened somewhat. The net effect is that petrochemical renovation materials are broadly flat to slightly lower in 2026 compared with the 2022–2023 peak. However, any MYR weakening or crude price spike would reverse this quickly.
For a deeper analysis, see our guide on which renovation materials are hit hardest by fuel and oil prices.
The most clearly documented and quantified cost increase for Malaysian renovation in 2026 is not material prices per se, but diesel-driven logistics and site-machinery costs.
When the Peninsular Malaysia diesel subsidy was removed on 10 June 2024, the pump price rose from RM2.15 to RM3.35 per litre — an increase of approximately 56% (Source: data.gov.my; Ministry of Finance). The government introduced targeted Budi MADANI diesel aid of RM200/month for eligible recipients, and anti-smuggling enforcement saved approximately RM600 million per month. Sabah and Sarawak retained the subsidy.
This increase is now a permanent structural feature of contractor costs and is reflected in:
The diesel channel is well-verified and persistent. By contrast, the RON95 petrol channel is muted for renovation: contractors’ passenger vehicles do not drive material costs, and RON95 remained at RM1.99/litre as of March 2026 under the BUDI95 targeted scheme (Source: Ministry of Finance; The Star, March 2026).
See our dedicated guide: diesel, delivery and renovation costs in Malaysia.
| Material / input | YoY change (Dec 2025) | Primary price driver | Renovation relevance |
|---|---|---|---|
| Cement | +2.0–+6.1% (DOSM BMCI) | Energy (coal/electricity) + diesel delivery | Tiling mortar, screeding, plastering, structural repair |
| Steel (rebar) | –3.2 to –7.1% (~RM3,512/t) (CIDB BMCI) | Global oversupply; Chinese exports | Structural extensions, roof purlins, metal stud |
| Paint & coatings | Broadly flat to slight – | Global crude, petrochemicals, MYR/USD, freight | All painting works; high surface area = high exposure |
| PVC pipes & fittings | Broadly flat | PVC resin (petrochemical), imports | Plumbing re-pipe, electrical conduit |
| Waterproofing membranes | Mixed (flat to slight +) | Bitumen / polymer crude linkage + MYR/USD | Roofs, bathrooms, balconies, basements |
| Tiles & ceramics | Flat to slight + (import-sensitive) | MYR/USD, shipping, origin-country energy costs | Floor and wall tiling throughout |
| Diesel (site use) | +56% since June 2024 (permanent) | Peninsular subsidy removal | Material delivery, site machinery, haulage |
| Labour | Modest + (3–5% informal estimate) | Wage inflation, foreign worker levy costs | All trades; roughly 50% of total project cost |
(Sources: DOSM BMCI December 2025; CIDB BMCI; data.gov.my; ClickBina market intelligence, 2026.)
Malaysia imports significant volumes of construction and renovation materials: porcelain tiles from China and Spain, sanitary ware from Europe and China, specialty waterproofing from Germany and Japan, and engineered flooring from multiple origins. Import costs are sensitive to:
The net import-cost environment in 2026 is neutral to slightly favourable compared with the 2022 peak. Importers and contractors are not facing the acute freight-cost and delivery-delay pressures of that period.
| Renovation trade | Key materials | 2026 material price direction | Net cost impact |
|---|---|---|---|
| Painting | Paint (petrochemical); labour-heavy | Flat to slight – | Broadly stable; labour drives this trade |
| Floor & wall tiling | Tiles (import-sensitive); cement mortar (+2–6%) | Mixed: tiles flat, mortar up | Modest increase from cement; tiles broadly stable |
| Waterproofing | Bituminous / polymer membrane (petrochemical) | Flat to slight + | Broadly stable; diesel delivery adds modestly |
| Structural extension | Cement (+2–6%); steel rebar (–3–7%) | Mixed: cement up, steel down | Net near-neutral; depends on cement/steel ratio |
| Re-piping | PVC / CPVC pipe (petrochemical); fittings | Flat | Stable; labour-intensive trade |
| Kitchen renovation | Cabinetry (wood/MDF/HDF); worktop; tiles; appliances | Mixed; mainly flat | Broadly stable; labour and carpentry dominate |
Projecting material prices involves genuine uncertainty. The following scenarios are based on publicly available data and market commentary, not predictions:
For budgeting purposes, the prudent assumption is flat to +3–5% on total renovation cost per year unless one of the above scenarios materialises. A fixed-price contract transfers this uncertainty to the contractor. See our guide on protecting your renovation budget from rising costs and our renovate now or wait guide for practical application of these trends.
This article is free to reference. If you use these figures in a report, article, or presentation, please cite ClickBina with a link. Suggested citation:
“Construction Material Price Trends in Malaysia (2026): Cement, Steel & More”, ClickBina, 2026. https://clickbina.com/guides/construction-material-price-trends-malaysia-2026/
Journalists, property writers and researchers are welcome to reproduce the tables above with attribution. For a renovation cost estimate that incorporates the latest material pricing, message ClickBina on WhatsApp or use our free renovation cost calculator.
All BMCI figures sourced from the Department of Statistics Malaysia (DOSM), Building Materials Cost Index, December 2025 release. Steel rebar pricing from CIDB BMCI, December 2025. Diesel subsidy reform figures from data.gov.my and the Ministry of Finance (June 2024). RON95/BUDI95 scheme data from the Ministry of Finance and The Star (March 2026). Renovation cost and market-intelligence data compiled from ClickBina 2026 contractor quotations and supplier price lists across the Klang Valley. Full renovation cost context: 2026 Klang Valley Renovation Cost Report. Hub article: how diesel subsidy cuts drive renovation costs in Malaysia.
Free to cite: “Construction Material Price Trends in Malaysia (2026)”, ClickBina, 2026. https://clickbina.com/guides/construction-material-price-trends-malaysia-2026/
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