Posted on 30 Sep 2025
Malaysia is committed to making the steel industry a fully green sector by 2050.
This commitment involves addressing the main challenges facing the industry, such as the oversupply of long steel products.
Tengku Datuk Seri Zafrul Tengku Abdul Aziz said this on Monday (Sept 29) at the opening ceremony of the Asean policymakers conference on steel and the 2025 Asean iron and steel forum.
The event was held in collaboration with the South-East Asian Iron and Steel Institute (SEAISI).
At the same event, he also launched the Steel Industry Roadmap 2035 (SIR2035).
During his speech, Tengku Zafrul explained that Asean currently faces an oversupply of long steel products while remaining heavily dependent on imports for flat steel products.
"This imbalance distorts our markets and creates an excessive burden on Asean's steel industry."
"These challenges are further compounded by new regulatory measures on decarbonisation and green steel obligations, as well as unfair practices such as dumping and transhipment."
The tariff burden, including the US Section 232 tariff on steel and aluminium, will also have serious implications for major Asean producers.
Tengku Zafrul said that steel demand in Asean has grown steadily.
Apparent consumption in the Asean-6 was 74 million tonnes in 2023, close to the pre-pandemic peak of 80 million tonnes in the period of 2018–2019.
"Steel accounts for a significant share of industrial carbon emissions," he said.
"It is our collective responsibility – policymakers and industry players – to explore strategies to mitigate these challenges in line with our Net Zero aspirations."
Tengku Zafrul said that countries in region must collaborate to find a solution.
"Government representatives need to build a shared understanding and explore collective responses," he said.
He said that domestic projections show upstream capacity could reach 40.8 million tonnes by 2030, while domestic demand is only 14.7 million tonnes.
"This gap highlights overcapacity – assets underutilised, poor return on investments, and market conditions weakening competitiveness and resilience," said Tengku Zafrul.
As steel is among Malaysia’s most carbon-intensive industries, Tengku Zafrul said that the industry exposes Malaysia to regulatory market barriers, making decarbonisation a necessity.
The Minister said that the SIR2035 provides a sequential pathway to stabilise, restructure, and transform Malaysia’s steel industry.
This transformation is in line with the New Industrial Master Plan 2030, the National Energy Transition Roadmap, and our Net Zero aspirations by 2050.
The Minister also proposed a regional cooperation framework for Asean member states to establish an Asean database on capacity and utilisation.
He also proposed the development of a common decarbonisation pathway, including full monitoring, reporting, verification (MRV) and environmental product declarations (EPD), along with harmonised green steel standards.
"Through these tracks, Asean can lead the green industrial transition," said Tengku Zafrul.
Also present at the event was Deputy International Trade and Industry Minister Liew Chin Tong, Datuk Lim Hong Thye, the chairman of SEAISI, and other top International Trade and Industry Ministry (MITI) officials.
Source:The Star
