KUALA LUMPUR :Malaysia is planning a revamp of its steel industry that aims to manage overcapacity, restructure licensing and prepare for decarbonisation with a goal of achieving a “fully green” sector by 2050, trade minister Tengku Zafrul Aziz said on Monday.
The 10-year roadmap includes establishing clear licensing guidelines for manufacturers, implementing a carbon pricing and transparency framework, and expanding access to finance for the transition to green and higher value-added production.
Tengku Zafrul said steel was one of Malaysia’s most carbon-intensive industries, exposing it to regulatory market barriers and making decarbonisation a necessity.
The industry also faced a stark domestic supply and demand imbalance, with projections showing upstream capacity could reach 40.8 million tonnes by 2030, while demand was seen at only 14.7 million tonnes.
“This gap highlights overcapacity – assets underutilised, poor return on investments, and market conditions weakening competitiveness and resilience,” he said.
Tengku Zafrul also proposed that the regional ASEAN bloc establish a database on capacity and utilisation that could help address steel overcapacity, dumping and transshipment.
Southeast Asian countries should also look to develop a common decarbonisation pathway, and explore setting up hubs for green steel production, he said.
