Strategic Synergy Shapes Steel Sector’s Sustenance

Malaysia’s Ministry of Investment, Trade & Industry has announced plans to roll out a comprehensive roadmap to boost the long-term resilience of the nation’s iron & steel sector. This initiative was shared during the recent Malaysian Steel Council meeting chaired by Deputy Minister Liew Chin Tong, who stood in for the minister. “This is the first Malaysian Steel Council meeting since MITI received the Independent Steel Committee’s final report,” Liew noted, underlining that the roadmap would integrate key recommendations aimed at shaping a modern, competitive and environmentally responsible industry.

The roadmap reflects months of consultation and analysis, marking an effort to adapt to global market pressures, technological change and sustainability challenges. Liew said, “We see this roadmap as a blueprint to protect industry jobs, boost competitiveness and keep Malaysia’s steel sector future-ready.”

Consensus & Concord Craft Common Commitment

At the heart of this roadmap is a spirit of consensus. The Federation of Malaysian Iron & Steel Industry and the Malaysian Steel Association both welcomed the ISC’s recommendations. MISIF President Roshan M Abdullah said, “We appreciate the government’s collaborative approach and look forward to these changes strengthening the entire steel value chain.” Datuk Seri Tai Hean Leng, Deputy President of the Malaysian Steel Association, echoed these sentiments, stating, “This roadmap provides clarity and a shared sense of direction that the industry truly needs.”

The plan’s emphasis on industry research, training and policy support, notably through a strengthened Malaysian Steel Institute, was praised as a timely step to support local talent and innovation.

Carbon Charge Catalyses Cleaner Commitment & Change

A notable pillar of the roadmap is the planned carbon tax, set to be introduced from 2026 in partnership with the Ministry of Finance. Announced earlier under Budget 2025, the tax aims to encourage producers to lower emissions and transition to greener technologies. Deputy Minister Liew said, “This is about aligning our economic ambitions with global sustainability goals and taking proactive steps to reduce carbon footprint in the steel sector.”

Industry figures acknowledged this as a balancing act, recognising that it poses challenges yet also opens opportunities. “A carbon tax will test our resilience but also drive innovation and efficiency,” MISIF’s Roshan M Abdullah observed.

Enforcement Endeavours Enhance Ethical Enterprise

Alongside policy measures, enforcement forms a core part of the roadmap. The Malaysian Steel Council meeting featured briefings from the Royal Malaysia Police and the Malaysian Anti-Corruption Commission. Ongoing operations, Op Padu 1.0, Op Padu 2.0 and Ops Metal, are designed to root out substandard steel and clamp down on illegal scrap metal smuggling.

“These enforcement efforts are vital in safeguarding industry integrity and promoting fair competition,” Liew emphasised. He added that tackling malpractice and smuggling protects consumers, honest businesses and Malaysia’s international trade reputation.

Institutional Integration Inspires Industry Innovation

ISC Chairman and HSBC Malaysia CEO Datuk Omar Siddiq explained that the ISC report was built on months of research and dialogue with stakeholders. “This roadmap is not just about today’s issues. It aims to prepare Malaysia’s steel sector for tomorrow’s realities,” he noted.

Key elements include reinforcing the Malaysian Steel Institute’s role in skills development, research and policy support, and strengthening data collection to better track industry trends and performance.

Sustainable Strategy Secures Sector’s Standing

Deputy Minister Liew underlined that sustainability is at the heart of Malaysia’s new roadmap. “The world is changing. Customers demand greener products, and investors look for lower-carbon operations. This plan ensures Malaysia’s steelmakers stay relevant and competitive,” he said.

MISIF and MSA leaders agreed that by modernising processes and investing in cleaner technologies, Malaysia’s steel industry can compete globally while reducing environmental impact.

Future-Focused Framework Fosters Fairness & Flexibility

As Malaysia prepares to implement this roadmap, the focus will also be on training, fair regulation and targeted support to help producers adapt to global shifts. “The goal is to build a steel sector that is resilient, competitive and sustainable, delivering benefits for workers, businesses and society,” Liew concluded.

With a blend of enforcement, environmental policy and innovation, Malaysia’s iron & steel roadmap is set to shape the sector’s next chapter.

Key Takeaways

• MITI to roll out a new roadmap based on the Independent Steel Committee report

• A carbon tax starting in 2026 aims to reduce emissions and drive greener production

• Enforcement operations like Op Padu and Ops Metal will target substandard steel and illegal scrap trade