Cluster 1: Malaysia Iron and Steel Industry Overcapacity Programme

Industry Lead: Mr William Wong, Amsteel Mills Sdn Bhd

Lead Agency: Malaysia Steel Institute

Background

Structural overcapacity remains one of the most significant challenges facing Malaysia's iron and steel industry, resulting in underutilised production assets, market imbalances, and weakened industry profitability. Addressing this issue is critical to improving industry competitiveness and ensuring sustainable sector growth. This programme is therefore established to support capacity optimisation, manufacturing licence reforms, market rationalisation, and initiatives that strengthen the long-term sustainability of the domestic steel industry.

Sub-Programmes

1A. Malaysia Iron and Steel Industry Rating Programme.

1B. Malaysia Iron and Steel Industry Local Producer Programme.

1C. Malaysia Iron and Steel Industry Export Promotion and Strengthening Programme.

Alignment with Steel Industry Roadmap 2035 Strategies (STS)

S1: Managing Overcapacity with Targeted Moratorium.

S2: Restructuring Manufacturing License for the Steel Industry.

S8: Facilitating Strategic Collaboration and Demand Commitment for Downstream Sector.

Alignment with Steel Industry Roadmap 2035 Priorities

P1A: Reduce domestic overcapacity, enhance utilisation of domestic steel mills and shift production from long to flat production.

P1B: Limit upstream steel capacity expansion with no new BF-BOF.

P1C: Withdraw or revoke dormant MLs.

P1D: Renegotiate MLs for approved but unbuilt BF-BOF to reduce capacity or convert to higher demand products (long to flat).

P1F: Established transparency on industry production and capacity data.