Blue Circle Industries PLC unit Malayan Cement said demand for its products in Malaysia is expected to remain strong, but uncertainty over demand and pricing of cement and ready-mixed concrete in Singapore will likely weigh down on the group's overall performance for the rest of the year.

In addition, higher fuel prices and short-term cost increases associated with capital project implementations and major plant shutdowns are expected to dampen 2001 earnings.

The company suffered a net loss due to the lower turnover especially in Singapore, coupled with higher production costs due to major scheduled repair and maintenance works being carried out at each of the group's integrated plants. Cement sales in Malaysia were 13% higher year-on-year, but in Singapore, sales fell 16%.