This is not funny at all.

Ekonomi Asas taught us that interest rates should be raised to counter inflation.

At the same time, our ailing economy require the people to keep spending money.

Do you think our BNM unaware of this?

They foresee such a situation already, so they roll out PIDB to take over the Govt's responsibility of guaranteeing deposit in commercial bank.

At this rate of inflation, a 1-2% increase in BLR is enough to make quite a number of people homeless.

It's true material on average didn't increase as much as 30%.

But analyse further:
1) Cement - Ceiling price lifted, transport cost increased = now already RM14 per bag & still rising.

2) Iron - Sometimes got money also no stock = getting supply difficult, moreover CASH only, no credit.

3) Concrete - 1m³ increased ranging from RM20-30 depending on grade & distance, 1 lorry carry 6m³ = 1 lorry of concrete need to pay RM120-180 more.

4) Heavy machinery - rental per day went up by RM100-200 = Anybody have any idea how many heavy machineries in a construction site?

5) Brick - no surprise, price increased as well.

6) The electric generator, cement mixer, pump etc - they run on petrol/diesel.

7) Electrical - copper is now a valuable commodity worldwide.

8) Water - well, if it's all PVC, still ok. if the spec quoted was copper pipe, good luck!

Not to mention the very basic - sand, aggregate, crusher run etc etc etc..........

Basically, building & selling a property is not just erecting a building. What about the infrastructure? The earth work? The reservoir? The TNB sub-station?

Some contractors, i heard, are planning to abandon their current on-going project if the client refused to revise the tender price. And that means, gulung tikar, dump everything & MAYBE start over a new company.

If the client allow price revision, the selling price must be adjusted to maintain their profit margin. If the client don't allow, .......... (pls figure it out).

This post has been edited by scorgio: Jun 17 2008, 11:22 PM