KUALA LUMPUR: The Ministry of Investment, Trade, and Industry (MITI) has received approval from the National Investment Council (NIC) to extend the current moratorium for the Malaysian iron and steel sector, which is set to end in August 2025.
MITI said the extension covers the upstream sector of long steel products and that a review of the moratorium period will be carried out once existing domestic players reach nearly 80% capacity utilisation.
"MITI will also extend the moratorium on the upstream sector of flat steel products and limit large capacity expansions. This approach aims, among other things, to address the mismatch between capacity and domestic usage, improve industry practices towards the adoption of emissions compliance technologies, and enhance sector governance to boost competitiveness and the production of high-value-added steel products," it said in a statement.
Additionally, MITI recognises the need for strong governance and industry coordination to support the transformation of the industry.
"Therefore, the NIC has agreed to restructure the Malaysia Steel Institute (MSI) and the Malaysian Steel Council (MSC) to strengthen and prioritise their current functions. This restructuring will enhance regulatory enforcement, ensure coordination between key agencies and promote fair competition.
"It will also improve capacity management by increasing transparency and enhancing the competitiveness and economy of the sector. The strengthened institutions will also play an important role in driving the decarbonisation pathway for the steel sector as a whole," it said.
The NIC also agreed with MITI's proposal for the government to accelerate the implementation and restructuring of carbon tax and carbon pricing mechanisms for emission-intensive industries, with the steel sector leading the compliance efforts for other sectors.
"MITI will also develop a decarbonisation roadmap, which includes the implementation of regulations to measure, report, and verify (MRV) greenhouse gas (GHG) emissions levels for all steel players in Malaysia, as a foundational building block for carbon pricing and other carbon mechanisms," it said. - Bernama
