Posted on 02 Jul 2024
The government must take swift action to protect Malaysia’s steel industry players as they are suffering unfair imports.
Malaysian Iron and Steel Industry Federation’s (MISIF) president Datuk Lim Hong Thye said in 2024, steel utilisation rate is very low (39.1%), so industry players are very much dependent on what is happening outside the country.
“While the industry is expected to see positive growth of around 8.3 million tons this year, it remains vulnerable due to unfair imports, particularly from China.
“The influx of cheaper imported steel has put significant pressure on local producers,” he said at a press conference after the launch of MISIF’s 15th Report on Status and Outlook of the Malaysian Iron and Steel Industry on Monday.
Lim also talked about the unfair import practices from various countries besides China, including Vietnam, which have taken a toll on the local industry.
Meanwhile, Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai pointed out that other countries, such as Indonesia and Vietnam, have reacted quickly to similar challenges by imposing higher import taxes and non-tariff measures to protect their local industries.
He suggested that Malaysia should consider similar protective measures.
To support the sentiment, Mycron Steel Bhd group CEO Roshan Abdullah provided a global perspective, saying the US and EU have also imposed additional import duties to protect their domestic industries from unfair trade practices.
The panel discussed the overcapacity in the global steel industry, particularly in China, which has continued to impact local production.
They also reiterated the importance of the steel industry as a strategic sector for Malaysia, emphasising its capital and labour-intensive nature.
“The steel industry is a policy-driven sector, so the government must come up with the right policies so that they are the right investments for Malaysia in terms of high value and high growth sectors,” Soh said.
Source:The Malaysian Reserve
