Source: The Edge
Malaysian industries could be impacted by dumping and transshipment issues as a result of the US-China trade war, according to the Ministry of International Trade and Industry (MITI).
“The possibility of dumping (of foreign goods in Malaysia) due to the trade war is very high,” said deputy minister for MITI Dr Ong Kian Ming, adding there is also concern Malaysia is being used as a transshipment point.
Speaking at the Malaysian Iron and Steel Industry Federation (MISIF) conference on status and outlook of Malaysia’s iron and steel industry today, Ong said MITI is monitoring trade statistics very closely, as it does not want Malaysia to be used as a hub for trade circumvention.
Malaysian Iron and Steel Industry Federation (MISIF) president Datuk Lim Hong Thye said the trade war is a double-edged sword for Malaysia. On one hand, there are concerns over dumping and Malaysia being hit with anti-dumping laws if it is used as a transshipment hub. However, it can also be an opportunity for members of MISIF to export to the US, following tariffs that the US has imposed on steel imports from Turkey, Lim said.
Separately, Ong called upon Malaysian steel manufacturers to diversify production and supply specialty steel to local industries such as automotive and oil and gas, as mega infrastructure projects are being put on hold.
“The industry must reflect on the need for structural reforms,” he said, encouraging players to engage and work with relevant government agencies.
He acknowledged calls made by MISIF for the government to offer incentives to encourage consolidation among steel industry players, saying MITI would study this proposal with its counterparts in the Ministry of Finance.