Posted on 25 Oct 2024
The government is committed to addressing the economic and environmental challenges faced by Malaysia’s iron and steel industry, said Deputy Minister of Investment, Trade and Industry (MITI), Datuk Liew Chin Tong, during the 14th MISIF Conference on the Status and Outlook of the Malaysian Iron and Steel Industry.
He reiterated that overcapacity and green transition remain key issues, although progress has been made. An independent committee, led by Datuk Omar Siddiq, CEO of HSBC Malaysia, is working to ensure that the industry remains both economically and environmentally sustainable. The committee’s report will be tabled to MITI Minister, Tengku Zafrul Aziz, soon.
Among the committee’s findings is the underutilisation of Malaysia’s steelmaking capacity compared to regional peers, and a call to level the playing field between electric arc furnace operators and blast furnace players. The committee also highlighted illegal steel operations, for which MITI is coordinating enforcement actions.
Datuk Liew also touched on the need for environmental sustainability, emphasising that investments in the local steel industry must account for emissions. “If all approved steel capacity comes online, the emissions would be equivalent to six coal-fired power plants,” he warned, stressing the importance of the green transition.
To address this, Prime Minister Datuk Seri Anwar Ibrahim has announced a carbon tax as part of the 2025 Budget. The tax collected will fund the green transition of the iron and steel industry, and Malaysia is considering a carbon border adjustment mechanism to ensure foreign steel producers comply with local environmental standards.
The Deputy Minister also discussed the need to enhance governance in the steel industry, particularly by revamping the Malaysian Steel Council (MSC) and the Malaysian Steel Institute (MSI) to provide more robust policy input.
He concluded by expressing optimism that Malaysia’s steel industry will thrive, driven by infrastructure projects and advanced manufacturing, including the aerospace sector. “We believe this second takeoff will benefit the entire iron and steel industry,” he added.
Source:BusinessToday
