KUALA LUMPUR: The Investment, Trade and Industry Ministry (MITI) has unveiled the Steel Industry Roadmap 2035, aimed at addressing overcapacity issues and advancing sustainability in the sector.
Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia is grappling with a sharp imbalance between supply and demand.
Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia is facing a significant imbalance between supply and demand.
“By 2030, upstream capacity is projected to reach 40.8 million tonnes, while domestic demand is expected to be only 14.7 million tonnes. This gap highlights overcapacity, with underutilised assets, weak returns on investment, and eroded competitiveness and resilience,” he said in his keynote speech at the launch today.
The roadmap outlines a strategy to stabilise, restructure, and transform the local steel industry in line with the New Industrial Master Plan 2030 (NIMP 2030), the National Energy Transition Roadmap, and the Net Zero 2050 target.
It introduces 15 strategies across three phases, beginning with a two-year stabilisation period. This phase includes measures such as managing overcapacity, restructuring licensing, tightening enforcement against illegal operators, securing domestic raw materials, and preparing for decarbonisation.
From 2027 to 2035, the focus will shift to transformation, including accelerating carbon pricing mechanisms, developing low-carbon production infrastructure and standards, and reinvesting in new technologies to enhance capabilities.
Beyond 2035, the roadmap envisions a fully green steel sector by 2050, driven by talent development and capital mobilisation to keep Malaysia’s steel industry competitive and aligned with net-zero commitments.
Tengku Zafrul added that the roadmap also aims to contribute to Asean’s sustainability agenda. Malaysia has proposed a regional cooperation framework, including a shared database on production capacity and utilisation to improve transparency and guide responses to overcapacity, dumping, and transshipment.
Other potential regional efforts include a common decarbonisation pathway, full monitoring, and harmonised green steel standards.
“Our steel industry stands at a crossroads. The choices we make today will decide whether Asean’s steel sector becomes a driver of growth, resilience, and sustainability — or remains burdened by old challenges,” he said.
