The Independent Steel Committee (ISC), established by the Ministry of Investment, Trade and Industry (Miti) in January 2024, has completed its consultations on the challenges and sectoral expectations facing Malaysia’s iron and steel sector. The findings, prepared after these assessments with stakeholders, aim to create a roadmap in line with the New Industrial Master Plan 2030 (NIMP 2030) to ensure the economic sustainability and environmental compliance of the sector.
Chaired by HSBC Bank Malaysia CEO Datuk Omar Siddiq, the ISC was tasked with outlining a roadmap for the short, medium, and long term, addressing the entire value chain of the iron and steel industry. The roadmap includes a blueprint for the green transition and strategies to introduce higher value-added products currently not produced domestically. The committee also reviewed governance structures to enhance the sector's efficiency and sustainability.
Miti imposed a two-year moratorium on expansion and diversification projects in the steel sector in August 2023 to assess the challenges facing the sector. The moratorium includes a suspension of new production licence applications, licence transfers and expansion activities, as well as exemptions from production licences for non-ferrous recycling activities.
The Malaysian Iron and Steel Industry Federation (Misif) called for transparency by requesting that the ISC make its findings public. The federation stressed that these findings are important for stakeholders to make informed and strategic decisions.
Miti said that it will guide the transformation of the sector by taking into account the ISC’s recommendations. The government’s goal is to increase the steel sector’s contribution to Malaysia’s economic development through a strategy focused on higher value-added production and environmental sustainability.
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