KUALA LUMPUR, May 5 (Xinhua) -- Malaysia's steel industry groups have called on the government to take action to address the country's industry challenges, including overcapacity and rising costs.
The Malaysian Iron & Steel Industry Federation (MISIF) and the Malaysia Steel Association (MSA) said in a joint statement on Monday that the industry continues to face challenges that threaten the viability, competitiveness, and sustainability of the steel industry value chain.
"With most of the public-listed steel companies in dire straits, to avoid systematic risk to the stock market and banking sector, it is of utmost priority and urgency to resolve the overcapacity issue by providing protection to the Malaysia steel industry," it said.
The industry groups have also called for the government to contain electricity tariffs and energy costs, minimize additional regulatory burdens, and enforce domestic procurement preferences.
As Malaysia moves toward its decarbonization goals, the statement highlighted that the transition must be underpinned by affordable and stable electricity pricing.
MISIF and MSA have also urged the government to defer or reconsider the implementation of mandatory 2 percent Employee Provident Fund contribution for foreign workers and expansion of the sales and service tax, to avoid compounding operational pressures and harming recovery efforts.
"The Buy Malaysia First policy must be strictly enforced in all government and government-linked procurement. Prioritizing local steel products will support capacity utilization, stimulate domestic demand, and stabilize the supply chain," said the statement. ■
