Malaysia Dedicated to Establishing G2G Mechanism with China to Support the Steel Industry

Malaysia is working with China to establish a government-to-government (G2G) mechanism for capacity management and technology sharing in the steel industry. Deputy Investment, Trade and Industry Minister Liew Chin Tong emphasized the need for ASEAN discussions on industry challenges.

He noted the imbalance between local long product capacity and imported flat product volume, stating, “With investments directed towards building up the local capacity in both manufacturing and utilisation of flat products, we hope to see an improvement in this imbalance and increase the economic sustainability of the industry.” Liew also warned that emissions from new steel capacity could equate to six coal-fired power plants, affecting Malaysia’s net-zero emissions goals by 2050.

Malaysia’s Green Transition

He proposed a carbon tax to fund the industry’s green transition, as announced in Prime Minister Datuk Seri Anwar Ibrahim’s Budget 2025 speech. Liew pointed out that global construction steel consumption, especially in China, is declining, resulting in excess production and challenges for Southeast Asia.

He called for improved governance in the sector, advocating for a revamp of the Malaysian Steel Institute (MSI) to enhance policy input. He remains optimistic about the industry’s future, driven by infrastructure projects and new investments, stating, “We believe this second takeoff will benefit everyone, including the iron and steel industry.”

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