Deputy International Trade and Industry Minister Liew Chin Tong speaking to the press after the launch of National Industry Environmental, Social Governance Framework (i-ESG Framework) at MITI Tower on Monday. — IZZRAFIQ ALIAS/The Star
KUALA LUMPUR: A report to address overcapacity of steel and iron in Malaysia and its future direction will be prepared by an independent committee.
Deputy Investment, Trade and Industry (Miti) Minister Liew Chin Tong has said that the ministry is concerned about the steel and iron overcapacity in South-East Asia.
This is as China is experiencing an economic slowdown, particularly in the construction and real estate sectors.
He highlighted that the capacity in South-East Asia for iron and steel will double or increase multifold in five to six years.
“In 2021, the capacity in South-East Asia was 75 million tonnes annually.
“If all the capacity that has been promised or approved starts production, the total capacity in South-East Asia will reach 150 million tonnes by 2027,” he said in response to a supplementary question from Datuk Seri Saifuddin Abdullah (PN-Indera Mahkota) yesterday.
Saifuddin had asked about the ministry’s plans for the local steel production to remain competitive, especially with large Chinese companies also producing steel in the country.
Meanwhile, Liew said the government had enforced nine anti-dumping actions and three safeguard measures against imported products from China.
These measures include for steel, plastics and construction materials from 2015 to 2023.
The government is also conducting anti-dumping investigations on four steel and plastic products, potentially due to overcapacity from China’s manufacturing industry, he added.
The investigations conducted were in accordance with domestic laws and regulations and the agreements under the World Trade Organisation, he said in response to Datuk Seri Hasni Mohammad (BN-Simpang Renggam).
Hasni had asked about the steps taken by the government to protect local industries from the impact of China’s manufacturing overcapacity.
