Malaysia has imposed a two-year moratorium, starting from 15 August, 2023, on steel investment in the country, Kallanish notes.
The Ministry of Investment, Trade and Industry (Miti) deputy minister Liew Chin Tong says the temporary suspension covered all inquiries, assessment of current applications, new applications, license transfers, expansions, regularisations, and diversifications for manufacturer licenses, as well as the issuance of certificates for exemption from manufacturing license (ICA10) under the Industrial Coordination Act, 1975 (Act 156) for manufacturing activities in the iron and steel industry, including recycling activities for the non-ferrous segment.
“MITI is of the view that this moratorium will allow a review to be made to address the challenges faced by the local iron and steel industry and update the direction of this industry in line with the New Industrial Master Plan 2030 (NIMP 2030),” he says.
However, he notes that if the manufacturing licence applications support the agenda of the national industrial master plan, the applications may be considered for exemption from the moratorium.
This includes complex iron and steel product production projects with high added value and equipped with low carbon/carbon reduction technologies such as carbon capture, utilisation and storage (CCUS) that supports the mission and aspirations of NIMP 2030.
“Any new manufacturing licence applications will also be assessed based on 12 parameters that have been set under NIMP 2030. Further details on these assessment criteria are being defined by the government currently,” he adds.
Liew earlier said in the Malaysian Iron & Steel Industry Federation (MISIF) trade forum that the government plans to take measures to tackle the overcapacity issue in Malaysia’s steel industry.
