Steel roadmap sets pathway for green transformation by 2050, says Tengku Zafrul

The Star

Malaysia has set its sights on making the steel industry a fully green sector by 2050, in line with the country’s broader sustainability and climate goals.  Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the commitment would involve addressing key challenges faced by the sector, particularly the oversupply of long steel products.  Read more at https://tinyurl.com/mu9f3vhc  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

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

Category

Transcript

Be the first to comment

Recommended