00:00All right, ladies and gentlemen, what our VIPs are holding represents Malaysia's commitment to the future.
00:06This is the Steel Industry Roadmap 2035.
00:09Today, the Ministry of Investment, Trade and Industry will also unveil the Steel Industry Roadmap 2035,
00:18outlining the government's path to growing the iron and steel sector sustainably.
00:23So, ladies and gentlemen, the iron and steel industry has long been the backbone of ASEAN's industrialization.
00:31Steel builds homes, roads, bridges, vehicles, ships, and the machinery that powers the economy.
00:40So, steel is actually the foundation of our future industrial growth.
00:44So, steel demand in ASEAN has grown steadily, with apparent consumption in the ASEAN 6 at 74 million tons in 2023,
00:55close to the pre-pandemic peak of 80 million tons in 2018 to 2019.
01:01But, I think most of you are aware, the industry faces challenges, in fact, pressing challenges.
01:10Globally, there is more than 600 million tons of excess steelmaking capacity,
01:15with much of this surplus seeking ASEAN markets.
01:19Within our region, steel demand is projected to reach 80 million tons by 2025.
01:25Yet, the situation is far from ideal.
01:30ASEAN faces oversupply in the long steel products,
01:34while remaining heavily import-dependent in flat steel products.
01:39The imbalance distorts our markets and creates an excessive burden to ASEAN's steel industry.
01:47These challenges are further compounded by the introduction of new regulatory measures
01:52on decarbonisation and green steel obligations,
01:56as well as unfair practices such as dumping and transshipment.
02:02The tariff burden, including the U.S. Section 232 tariff on steel and aluminium,
02:07also have serious implications for major ASEAN producers.
02:12Steel accounts for a significant share of industrial carbon emissions,
02:16So, it is our collective responsibility, both policymakers and industry players,
02:21to explore strategies to mitigate these challenges in line with our net-zero strategies.
02:28But these burdens must not be shouldered by any single country.
02:34To effectively address them, countries must collaborate and curate a regional solution.
02:39So, this is where the policymakers, and this conference obviously is timely,
02:47is important, as the inaugural ASEAN-level platform for steel policy.
02:53Government representatives need to build a shared understanding and explore collective responses.
02:59Among the objectives of ASEAN Policymakers Conference on Steel,
03:03this is of course held in conjunction with the 2025 ASEAN Iron and Steel Forum,
03:08are to build a common understanding of the structural and environmental pressures on the industry,
03:16and to explore a framework for ASEAN cooperation,
03:20so we can compete fairly, transition sustainably, and build resilience together.
03:27I am pleased to note that 2025 ASEAN Iron and Steel Forum complements this effort
03:32by bringing together industry players, technical experts, and international partners,
03:38grounding discussions in policy direction and market realities.
03:43Malaysia's appreciation goes to CSI and ASEAN colleagues for making this platform a reality.
03:49I was informed that this morning, session on cover capacity, decarbonisation, and supply chain innovation were productive.
03:57YP Liu himself was there and gave his views on this,
04:02and I believe these conversations must continue.
04:06To that end, let us establish this conference as a regular platform
04:10that guides ASEAN steel policy with continuity and purpose.
04:15So, distinguished guests, allow me to share Malaysia's experience.
04:20Malaysia faces a stark imbalance between supply and demand.
04:24It is steel industry.
04:26Domestic projection shows upstream capacity could reach 40.8 million tonnes by 2030,
04:34while domestic demand is only 14.7 million tonnes.
04:37This gap highlights overcapacity, assets underutilised, poor return on investments,
04:45and market conditions weakening competitiveness and resilience.
04:50So, sustainability is integral.
04:53Steel remains among Malaysia's most carbon-intensive industries,
04:57exposing us to regulatory market barriers
04:59and making decarbonisation a necessity, both environmentally and economically.
05:07So, against this backdrop, Miti formulated the Steel Industry Roadmap 2035, or SIR 2035.
05:17It provides a sequential pathway to stabilise, restructure, and transform Malaysia's steel industry
05:25in line with the new Industrial Master Plan 2030,
05:28the National Energy Transition Roadmap, and our net zero aspiration by 2050.
05:37www.sir-sir-yout.org
05:45www.sir-yout.org
05:46www.sir-yout.org
05:49www.sir-yout.org
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