Posted on 19 Nov 2024
The overcapacity of steel and iron production in the Asean region and the impacts on Malaysia’s steel industry will be looked at by an independent committee, says Liew Chin Tong.
The Investment, Trade and Industry (Miti) Deputy Minister said that the capacity in Southeast Asia for iron and steel was set to double or increase multifold in five to six years.
“In 2021, the capacity in Southeast Asia was 75 million metric tons annually.
“If all the capacities that have been promised or approved start production, the total capacity in Southeast Asia will reach 150 million metric tons by 2027,” he said, in response to a supplementary question from Datuk Seri Saifuddin Abdullah (PN-Indera Mahkota) on Monday (Nov 18).
He said that this was worrying as China was experiencing an economic slowdown, particularly in the construction industry and real estate sector.
He also said that concerns on the steel and iron industry overcapacity were not only in Malaysia but also in Southeast Asia.
Addressing the concern, he said that Miti had appointed an independent committee that would prepare a report on the direction for the country on the overcapacity concerns.
Saifuddin had asked about the ministry’s plans for the future steel production, especially with large Chinese companies also producing steel in the country.
Meanwhile, Liew said that the government has enforced nine anti-dumping actions and three safeguard measures against imported products from China, including steel, plastics and construction materials from 2015 to 2023.
The government is also conducting anti-dumping investigations on four steel and plastic products, potentially due to overcapacity from China's manufacturing industry, he added.
The investigations conducted are in accordance with domestic laws and regulations and the agreements under the World Trade Organization, he said in response to the question from Datuk Seri Hasni Mohammad (BN-Simpang Renggam).
Hasni Mohammad asked about the steps taken by the government to protect local industries from the impact of China's manufacturing overcapacity.
Source:The Star
