The Malaysian Ministry of Investment, Trade and Industry (MITI) is dedicated to restructuring the national steel industry to boost its sustainability, recognising the sector’s strategic importance. MITI has engaged with the Malaysian Iron and Steel Industry Federation (MISIF) and the Malaysia Steel Association (MSA) to address challenges and develop a comprehensive restructuring plan. Key concerns include potential disruptions from upcoming US tariffs on steel and aluminium, which could divert foreign steel to Southeast Asian markets.
During the discussion, MITI Deputy Minister Liew Chin Tong and Secretary-General Datuk Hairil Yahri Yaacob engaged with the industry players, and the key topics discussed included:
Commitment to Sustainability
MITI emphasises the need to enhance the sustainability of Malaysia’s steel industry, viewing it as a vital sector for the country.
Collaboration for Restructuring
MITI is urging MISIF and MSA to work closely with the ministry to create a detailed restructuring plan that garners broad industry support.
Addressing External Challenges
The ministry acknowledges the significant challenges the steel industry has faced and is proactively addressing the potential impact of US tariffs on the Malaysian market.
Preparing for Carbon Pricing (Implied)
While not explicitly stated, the focus on sustainability and restructuring suggests Malaysia is preparing its steel industry to be more competitive and resilient in the face of future stringent carbon pricing policies. A sustainable steel industry is inherently more likely to be efficient and adaptable to carbon-related costs.
Mitigating Disruptions
Proactive engagement with industry stakeholders and the development of restructuring plans indicates an effort to mitigate potential disruptions and ensure the long-term viability of the Malaysian steel industry.
Malaysia’s government, through MITI, is actively working to make its steel industry more sustainable and competitive. By collaborating with industry groups, MITI aims to develop strategies that will strengthen the sector and protect it from potential market disruptions caused by international trade policies. This push for sustainability also suggests that Malaysia is preparing its steel industry to adapt to future carbon pricing policies, ensuring its continued success in a changing global landscape.
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