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Malaysia aims to strengthen steel sector through collaboration with China

Malaysia is working toward establishing an intergovernmental framework with China to manage capacity and facilitate technology exchange in the steel industry.

Malaysia aims to strengthen steel sector through collaboration with China

Deputy Minister of Investment, Trade and Industry Liew Chin Tong announced at the 14th Malaysian Iron and Steel Association (MISIF) Conference on the State and Prospects of the Malaysian Iron and Steel Industry that Malaysia is working toward establishing an intergovernmental framework with China to manage capacity and facilitate technology exchange in the steel industry. During his address, Liew highlighted the steel industry’s key challenges, particularly the issues of overcapacity and the urgent need for green transformation.

Liew emphasized that Malaysia's iron and steel sector requires a more robust governance structure. He pointed out that while organizations like the Malaysian Steel Board and the Malaysian Steel Institute oversee the sector, their operations need strengthening to provide better industry support. According to Liew, the Malaysian Steel Board should convene more frequently and receive diverse industry insights. In contrast, the Malaysian Steel Institute requires a major restructuring to become a source of reliable policy guidance.

In addition to these domestic improvements, Malaysia has invited China to participate in dialogues at the ASEAN level. This collaboration aims to address shared challenges in the steel industry and explore avenues for regional partnerships, building on China’s extensive experience in industrial management and capacity governance.

Liew also addressed the imbalance between Malaysia’s long-term domestic production capacity and imported fixed products, emphasizing that investments in local flat product manufacturing could play a crucial role in stabilizing the market. By building domestic capacity, he added, Malaysia can strengthen the economic sustainability of its steel sector while meeting local demand.

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