KUALA LUMPUR (Sept 30): Malaysia’s steel industry players have rallied behind Putrajaya’s newly launched Steel Industry Roadmap 2035, describing it as “a long overdue framework” to tackle overcapacity and set the sector on a credible path towards decarbonisation.
The Malaysian Iron and Steel Industry Federation (Misif) said the roadmap marks a “clear recognition” of the sector’s role as the backbone of the national economy, while signalling the government’s intent to confront structural weaknesses that have long plagued the industry.
“Misif welcomes the comprehensive approach taken, especially in addressing global overcapacity, evolving trade dynamics, and the transition towards decarbonisation,” the national industry association for manufacturers of iron and steel products said in a statement on Tuesday.
The roadmap — unveiled on Monday by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz — sets out 15 strategies across three phases, beginning with stabilisation from 2025 to 2027. Immediate measures include halting new projects, restructuring the licensing framework, and revoking dormant approvals to rein in excessive upstream capacity.
The Ministry of Investment, Trade and Industry (Miti) has also imposed a ban on new blast furnace-basic oxygen furnace (BF-BOF) plants, the most carbon-intensive production route, while prioritising direct reduced iron and hot briquetted iron (DRI-HBI) facilities, which provide sustainable feedstock for electric arc furnaces (EAFs), which are said to be more compatible with a low-carbon future.
From 2027 to 2035, the focus will shift to scaling up green technologies, innovation, and industry standards, with the ultimate target of full decarbonisation by 2050.
Misif, which has over 150 members, said it would review the detailed strategies and provide constructive feedback to support the roadmap's effective implementation.
“We remain committed to working closely with Miti and the relevant authorities to ensure that the aspirations of the roadmap can be translated into effective implementation for the long-term competitiveness and sustainability of the Malaysian iron and steel industry,” it said.
"Misif looks forward to continued collaboration with all stakeholders in shaping a resilient, innovative, and forward-looking steel sector that contributes meaningfully to Malaysia’s national development goals," the federation added.
Malaysia’s steel industry roadmap comes amid persistent imbalances in the wider Asean steel market, where demand for flat products continues to be met largely by imports while long product capacity remains in surplus.
By 2030, Malaysia’s upstream capacity could climb to 40.8 million tonnes against projected demand of just 14.7 million tonnes, underscoring the urgency of reforms.
Zafrul has framed the roadmap as not only an industrial policy but a “national contract for future generations’ socio-economic well-being”, tying it to broader frameworks such as the National Energy Transition Roadmap and the 13th Malaysia Plan.
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