KUALA LUMPUR, Malaysia aims to make its steel industry fully green by 2050 with the launch of the Steel Industry Roadmap 2035 (SIR2035), a strategic plan addressing overcapacity, import reliance, and carbon emissions.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said SIR2035 provides a clear pathway to stabilise, restructure, and transform the sector in line with the New Industrial Master Plan 2030, the National Energy Transition Roadmap, and the nation’s Net Zero goals.
Future guide: Tengku Zafrul (second from left) taking a look at the Steel Industry Roadmap 2035. With him are (from left) Miti secretary-general Datuk Hairil Yahri Yaacob, Liew and Miti deputy secretary-general Datuk Hanafi Sakri.
The roadmap outlines 15 strategies across three phases: stabilisation, transformation, and full transition. In the next two years, the focus will be on managing overcapacity, restructuring licensing frameworks, cracking down on illegal operators, securing domestic raw materials, and laying the groundwork for decarbonisation. From 2027 to 2035, efforts will shift to accelerating carbon reduction initiatives, developing low-carbon production infrastructure, establishing standards, and investing in new technologies. Beyond 2035, the aim is a fully green steel sector by 2050, with talent and capital mobilised to maintain competitiveness, resilience, and alignment with Net Zero commitments.
Tengku Zafrul described SIR2035 as “not only a policy document, but also a national contract for a sustainable future and the socio-economic wellbeing of future generations.” He highlighted challenges facing Asean, including overproduction of long steel products, heavy reliance on imported flat steel, unfair trade practices, and regulatory pressures such as decarbonisation requirements and tariffs like the US Section 232 steel and aluminium duties.
At the launch of SIR2035 during the Asean Policymakers Conference on Steel and the 2025 Asean Iron and Steel Forum, Tengku Zafrul shared that Asean-6 steel consumption reached 74 million tonnes in 2023, approaching the pre-pandemic peak of 80 million tonnes, with demand projected to hit 80 million tonnes by 2025. Globally, over 600 million tonnes of excess steelmaking capacity is seeking markets in Asean.
For Malaysia, upstream steel capacity could reach 40.8 million tonnes by 2030, while domestic demand stands at only 14.7 million tonnes, reflecting overcapacity, underutilised assets, and weakening competitiveness. As one of the country’s most carbon-intensive sectors, the steel industry faces regulatory and market challenges, making decarbonisation essential. 
Tengku Zafrul also proposed a regional cooperation framework, including an Asean-wide database on capacity and utilisation, a shared decarbonisation pathway with full monitoring, reporting, and verification (MRV), environmental product declarations (EPD), and harmonised green steel standards.
The event was organised in collaboration with the South-East Asian Iron and Steel Institute (Seaisi), with Deputy Minister Liew Chin Tong and Seaisi chairman Datuk Lim Hong Thye also in attendance.
