- Malaysia plans steel industry decarbonization by 2050.
- Roadmap tackles overcapacity, licensing, green financing.
- ASEAN urged for database, green steel hubs collaboration.
In an announcement made by Minister of Investment, Trade and Industry Tengku Zafrul Aziz, Malaysia is working on a wide-ranging 10-year roadmap to improve its steel sector with an achievable goal of complete decarbonization by 2050.
As one of the top carbon emitting sectors in Malaysia, the steel sector faces several challenges, including overcapacity, low investment returns, and underutilized resources, which has diminished its competitiveness. The government intends to address these issues, while also transforming the sector to greener high-value production.
The route map will establish licensing frameworks for steelmakers, improve carbon pricing transparency, and enhance access to financing for sustainable development. Alongside managing overcapacity and rethinking licensing, Malaysia is striving to balance supply and demand to improve resilience for the steel industry and the nation's global standing.
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In order to encourage cross-border co-operation, Tengku Zafrul suggested that ASEAN create a common database for tracking the production capacity and the usage of steel. Such an instrument would climb over obstacles like the excess of the capacity, the export of the cheap products, and steel re-exports that are typical for the region, by which the organizations would be able to promote the practice of the fair trade.
Additionally, he appealed to the ASEAN countries to come up with a joint plan for decarbonization and to examine the idea of establishing regional clean steel production hubs to facilitate eco-friendly innovations. Such a step is indeed a manifestation of Malaysia’s pledge to bring its steel sector in line with international climate targets, resulting in the sector’s modernization and the establishment of stable regional cooperation for a sustainable future.