Ministry seeks review of steel players’ roles for potential merger
KUALA LUMPUR: The Investment, Trade and Industry Ministry is calling for a review of the roles of the Malaysia Steel Association (MSA) and Malaysian Iron and Steel Industry Federation (MISIF) for a potential merger.
MISIF is the association for flat steel players while MSA is the body for long steel players.
Deputy Minister Liew Chin Tong said the ministry was committed to improving the “strategic” iron and steel industry under the New Industrial Master Plan.
“The ministry looks forward to working with industry players to create a more sustainable, dynamic, and internationally competitive iron and steel sector,” he said at the Malaysia Steel Council (MSC) meeting recently.
Liew said steel production capacity in Southeast Asia was expected to increase to 151.9 million tonnes in 2026 from 75.3 million tonnes in 2021 if all the potential investments materialised.
He said Malaysia raised the issue of overcapacity in Southeast Asia’s steel industry at the Asean Economic Ministers’ Retreat last month, with the Asean Secretariat agreeing to elevate this agenda for Asean-wide discussion.
Meanwhile, several issues affecting the iron and steel industry were discussed at the MSC meeting.
They included enforcing government procurement in construction projects, where local content was mandated at the main contractors’ stage and to permeate through the supply chain. This was to safeguard the ringgit, enhance the local supply chain and ensure compliance with the local content requirements.
Another topic of discussion was
on strengthening enforcement by the authorities to ensure compliance with export declarations for steel scrap, which was subject to a 15 per
cent export tax, said Liew, who is also MSC chairman.
“This measure aims to prioritise the use of scrap for local steel mill consumption, thereby bolstering domestic production and reducing reliance on imports. This will contribute to the sustainability and growth of the local steel industry,” he added.
The meeting also discussed imported flat steel and fair trade practices within the industry.
Liew stressed the significance of implementing comprehensive measures to identify and tackle any attempts to circumvent trade regulations or tariffs.
Moving forward, he underscored the collaboration between the ministry, the Malaysia Steel Institute and MSC on the adoption of a carbon emission reporting method.
This initiative is set to roll out across the industry in the latter half of this year, representing the initial stride towards carbon pricing, trading and taxation.