Posted on 19 Feb 2025
Anti-dumping measures may be implemented to address any influx of cheap steel imports into Malaysia in the wake of the recent imposition of tariffs by the US, said the Ministry of Investment, Trade and Industry (Miti).
“If there is evidence of dumping from a particular country which consequently causes injury towards the domestic industry in Malaysia, anti-dumping measures may be imposed to address the unfair trade practices,” the ministry said in a written reply on Monday, in response to inquiries by The Edge on the impact of a potential dumping of steel by China in Malaysia and other Asian countries.
Alternatively, the ministry said trade remedy measures such as safeguards may be applied to deal with any sudden surge of imports which causes serious injury to the domestic industry. This would be a temporary measure to allow the domestic industry players to make the necessary adjustments and manage their operations accordingly, Miti added.
During a panel discussion at the China Conference Southeast Asia 2025, organised by the South China Morning Post, Miti Minister Tengku Datuk Seri Zafrul Abdul Aziz also addressed concerns over the influx of cheap imported steel.
"This issue of cheap imported steel and aluminium has actually affected local players, which is why we implemented a moratorium (on any new plants or expansion of steel and aluminium) starting in August 2023. Without the moratorium since August 2023, Malaysian players would not exist today," he told the conference.
“We just discussed this (issue) with relevant ministries, including the prime minister. What’s important is ensuring the sustainability of strategic industries, including steel and aluminium,” he said.
Tengku Zafrul noted that the impact of US tariffs on Malaysia’s steel and aluminium exports is minimal, as the country exported only about RM2.45 billion worth of iron and steel products to the US in 2024, representing about 1.2% of Malaysia’s total exports to the US.
Last week, the Malaysian Iron and Steel Industry Federation urged the government to strengthen anti-dumping measures, warning that the US’ 25% tariffs could redirect steel products into Malaysia, exacerbating trade diversion concerns.
Earlier this month, Miti launched a probe into alleged dumping of flat-rolled steel products from China, South Korea and Vietnam, following an expansion in anti-dumping duties on certain steel wires from China. It is not known when the outcome will be announced.
The US is imposing a flat 25% duty on all steel and aluminium imports — up from the previous 10% — without exceptions or exemptions. This move eliminates previous carve-outs for certain countries, quota agreements, and product-specific exclusions.
The tariffs will apply to most imports from Canada, Brazil, Mexico, South Korea, and other countries that had previously enjoyed duty-free access under exemptions.
In January, Vietnam imposed anti-dumping duties on certain steel wires originating from China, Malaysia and Thailand. In October 2024, Indonesia slapped duties on some iron products from China, South Korea, and Taiwan.
Source:The Edge
