In response to various comments in the local media on 7 May 2014, about the steel industry, the Ministry of International Trade and Industry (MITI) wishes to clarify and clear any misconception that the reports may have generated.

In 2012, MITI commissioned the Boston Consulting Group to undertake a study of the industry in order to enable the Government to take a holistic approach to overcoming the challenges faced by the industry. The Government has implemented proposals derived from the study.

The proposals include measures to further enhance the competitiveness of the upstream and downstream industry, support access to key inputs for the industry, enhance the capabilities of the steel industry, improve standards & importation processes and enhance trade remedies.

A fundamental proposal was for the establishment of a Malaysian Steel Council (MSC) and technical working groups to oversee and guide the development of the industry. The MSC is chaired by the Minister of International Trade and Industry and comprises representatives from all sectors of the industry, as well as the Government. The technical working groups meet regularly to deal with the concerns of both the upstream and downstream segments of the industry.

In August 2013, mandatory standards came into force to address safety and quality concerns. To counter unfair trade practices in the domestic market, the Government imposed anti-dumping measures on several imported steel products.
As part of the restructuring of the industry, from 1 February 2013, the Government ceased granting duty exemptions on a total of 18 grades of steel imports (as in the appendix).

As recommended by the industry, the Malaysia Steel Institute (MSI) was established in January 2014. The MSI is an independent entity. It focuses on human capital development, research and development, formulation of standards and advisory services for the industry.

It is important to note that all the measures taken were in consultation with all the stakeholders. The implementation of the measures is expected to further enhance the industry’s competitiveness and help build its capacity to face challenges.   However, to become more competitive, the industry itself must achieve greater synergies between its upstream and downstream sectors.

At the international level, the Government will continue to secure better market access for Malaysia’s steel products through free trade agreements.

The Government is committed to working with the domestic steel industry and will take appropriate measures to promote its development. This, however, will be done while respecting Malaysia’s international obligations to promote freer and fair trade.




Ministry of International Trade and Industry
KUALA LUMPUR, MALAYSIA
7 May 2014

APPENDIX

Effective from 1 February 2013, the following 18 grades of steel imports will cease receiving duty exemptions:

No.  Grades

1. JIS G 3132    SPHT 1
2. JIS G 3132    SPHT 2
3. JIS G 3132    SPHT 3
4. JIS G 3132    SPHT 4
5. JIS G 3101    SS 400
6. JIS G 3101    SS 490
7. JIS G 3101    SS 540
8. JIS G 3106    SM 490
9. BS EN 10025    S355JR
10. BS EN 10025    S355J0
11. BS EN 10025    S355J2
12. BS EN 10111    DD 11
13. AS/NZS 1594    HA 350
14. AS/NZS 1594    HA 250
15. JIS G 3131    SPHC Cheq
16. JIS G 3101    SS400 Cheq
17. ASTM    A 36 Cheq
18. BS EN 10025    S 275 JR Cheq