Posted on 07 May 2025
The Malaysian iron and steel industry has raised concerns over the threats from surging imports, unfair trade practices and rising operational burdens, and is puzzled by the lack of action by the Ministry of Investment, Trade and Industry's (MITI’s) Independent Steel Committee despite a thorough review and report submitted.
In early May, the South East Asia Iron and Steel Institute (SEAISI) stated that no discernible progress or action taken by the government has occurred in Malaysia regarding growing Chinese steelmaking capacity in Malaysia and neighboring countries.
"Governments around the world have been adopting a variety of strategies to help their steel industries,” the group says, citing the United Kingdom Parliament for passing an emergency law allowing the government to take control of the Chinese-owned British Steel plant, which employs around 2,700 people and produces steel crucial for U.K. industries, including construction and rail transport.
The Malaysian Iron & Steel Industry Federation (MISIF), according to SEASAI, is calling on the government of Malaysia to take "immediate, bold and decisive action."
"Coordinated intervention is urgently needed to prevent long-term damage to the industry and safeguard national production capabilities," SEASAI says.
“Chronic overcapacity remains one of the most critical structural issues—a consequence of past policy decisions. Government leadership is essential in developing a coordinated, long- term solution to rebalance supply and demand and support industry rationalization.
“With most of the public listed steel companies in dire strait[s], to avoid systematic risk to the stock market and banking sector, it is of utmost priority and urgency to resolve the overcapacity issue by providing protection to the Malaysia steel industry.”
Source:Recycling Today
