Workers handle steel bars at the Semanggi flyover construction project in Jakarta, Indonesia, August 1, 2016. REUTERS/Beawiharta
KUALA LUMPUR: The Master Builders Association Malaysia (MBAM) has strongly opposed the safeguard measures on steel as it will lead to uncontrollable prices of steel bars due to the absence of the free flow of imported steel.
In a statement, MBAM said the Government recently introduced safeguard duties of 13.9% for steel coils and 13.4% for steel re-bars following a petition by local steel industry players.
It said industry players alleged that the increase of imports of the steel products into Malaysia caused serious injury to the domestic industry producing the likes of the items.
“This safeguard rate will be imposed on top of the existing 5% import duty. This action has an enormous impact on the steel consumers in Malaysia.
“Steel is used as an input in different industries and any further rise in steel prices will increase the cost of production,” it said.
MBAM said the Government should look at a sustainable long-term plan on this issue, as the local producers were not supposed to be protected for their inability to stay competitive.
“Besides, these measures are a U-turn from the Government's previous decision in 2008 to liberalise the steel industry by abolishing the price control/ceiling prices,” it added. - Bernama
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