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GOVERNMENT SMOOTHENING OUT THE DISRUPTION IN THE SUPPLY OF GRANITE AGGREGATES FROM INDONESIA

There have been some disruptions in the supply of granite aggregates from Indonesia in the past few days. We understand that the Indonesian authorities have stepped up checks on barges carrying granite aggregates and granite dust to Singapore, following the recent export ban on land sand. Some barges had been detained.

2 The Government is releasing some granite aggregates from our stockpile to make up for any immediate shortfall in the supply of granite to the construction industry. We are also proceeding to procure granite aggregates from alternative sources and encouraging the private sector importers to do the same. If the situation continues, we expect the price of granite to rise due to higher transportation costs involved in shipping the granite from the alternative sources that are further away. As in the case of land sand, the Government, as a major developer itself, will work out similar co-sharing arrangements with the contractors and concrete suppliers for existing public sector projects.

3 We are continuing to work with the industry to diversify our supply sources for construction materials and adopt more sustainable construction methodology to reduce our dependence on concrete.

 

Issued by : Ministry of National Development
    Building and Construction Authority
     
Date : 2 March 2007


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Last updated on 2 March 2007

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