The White Paper, initially presented to the Ministry of International Trade and Industry (MITI) in 2019, encompasses a range of policy recommendations aimed at refining the local iron and steel sector.
Among the proposals are enhancements to the Manufacturer License (ML) production policy, import and export regulations for specific iron products, cost management strategies, process improvements, and workforce development initiatives.
“Following deliberations, a policy review was initiated through a Cabinet Memorandum in November 2020, taking into account insights and suggestions from industry stakeholders via the White Paper.
Subsequently, the government endorsed a series of improvements,” said Deputy Minister of Investment, Trade and Industry (MITI) Liew Chin Tong during the Dewan Negara sitting today (Apr 1).
One such improvement includes strengthening the ML production policy requirements for investors undertaking project proposals.
Additionally, a 15% export duty on certain iron products was reinstated, while maintaining the Export License mechanism.
Furthermore, industry players are now offered the option to seek import duty exemptions through designated committees for raw iron and steel materials used in export-oriented manufacturing.
Lastly, a recycling policy was introduced for approving new Manufacturer Licenses and import permissions for specific iron products.
In response to the query raised by Tan Sri Datuk Low Kian Chuan, Chin Tong also emphasised that the insights from the White Paper were utilised in the Foresight Study for the Iron and Steel Sector in 2022, which informed the development of the New Industrial Master Plan (NIMP) 2030.
This comprehensive plan aims to modernise the iron and steel sector in alignment with long-term manufacturing objectives.
MITI implemented a two-year moratorium starting August 15, 2023, on various activities related to Manufacturer Licenses under the Industrial Coordination Act, 1975. “This moratorium aims to enable the Government to conduct a review of policies and the local iron and steel industry ecosystem to address challenges faced by the sector, in addition to updating the direction of this sector in line with the New Industrial Master Plan 2030 (NIMP 2030),” Chin Tong added.
In January 2024, MITI established a Free Committee for the Iron and Steel Industry, chaired by Dato’ Omar Siddiq, CEO of HSBC Malaysia. This committee aims to realign industry direction and promote sustainability, including initiatives such as incorporating green manufacturing practices and developing high-value-added products.
Key functions of the committee include assessing industry prospects, delineating roles for relevant agencies and industry associations, integrating environmental, social, and governance (ESG) principles, and fostering innovation.
The committee is expected to present a comprehensive study on the Malaysian iron and steel industry within six months of its establishment.
