THE Malaysian Government has called on ASEAN to lead a global shift toward sustainable steel production through international cooperation, not confrontation.
Speaking at the Inaugural ASEAN Policymakers Conference on Steel and the 2025 ASEAN Iron and Steel Forum, Deputy Minister of Investment, Trade and Industry Liew Chin Tong, urged governments to embrace “steel diplomacy, not a steel trade war.”
“This is the time for all of us, especially those in ASEAN, to race to the top, to adhere to the highest standards, to create conditions for clean and green steel to be produced, to coordinate capacity, and to pursue a regional approach to steel production and investment,” he said.
The Conference, held in Kuala Lumpur, was jointly hosted by the South East Asia Iron and Steel Institute (SEAISI), the ASEAN Iron and Steel Council (AISC), and Malaysia’s Ministry of Investment, Trade and Industry (MITI), with support from the Malaysian Iron and Steel Industry Federation (MISIF) and the Malaysia Steel Institute (MSI).
The Forum coincided with the upcoming launch of the Iron and Steel Industry Roadmap by MITI Minister Tengku Zafrul Aziz. The document, developed over two years by the Independent Committee on the Iron and Steel Industry (ISC), chaired by Dato’ Omar Siddiq, outlines Malaysia’s path towards a more sustainable, efficient and strategically governed sector.
“The ISC report was presented to the National Investment Council chaired by Prime Minister Dato’ Seri Anwar Ibrahim in February, while the companion Roadmap was presented to the Cabinet recently,” Liew confirmed.
He outlined five core conclusions from the review process, beginning with recognition of the steel industry as a strategic sector:
“There is now a general consensus within the Government of Malaysia that: first, the steel industry is a strategic sector that requires national attention; second, there needs to be some form of a consistent and transparent capacity management framework; third, decarbonisation has to be a key agenda; fourth, governance mechanisms must be strengthened; and fifth, engagement with foreign steel trade partners is essential.”
Liew highlighted concerns around growing overcapacity across the region. ASEAN’s steel production, currently at 84.6 million tonnes, is forecast to double by 2035. He warned, “This expansion vastly outpaces ASEAN’s steel demand growth and threatens industry sustainability.”
Electric arc furnaces in Malaysia, a lower-emission alternative to blast furnaces, are operating at only 40 per cent capacity. “This is not sustainable and alarming,” Liew remarked.
He also underscored steel’s critical role in the global climate agenda. “There is no decarbonisation pathway for the world without steel,” he said, adding, “No solar panels or wind turbines without steel; no electric vehicles, or high-speed rail without steel; no AI data centres, green buildings, or climate-resilient infrastructure without steel.”
Addressing global trade and regulatory pressures, Liew cited rising steel nationalism in the United States, China’s economic slowdown, and the proliferation of anti-dumping measures, noting that 19 governments initiated 81 anti-dumping investigations involving steel products in 2024 alone.
He also pointed to the European Union’s Carbon Border Adjustment Mechanism (CBAM) as a policy shift that demands coordinated regional response. “The sooner we have a clear pathway to deal with CBAM, the better it is,” he said.
Liew proposed a multi-pronged international agenda for steel diplomacy. This includes just transition financing for green steel, harmonisation of standards, and closer government-to-government and institutional collaboration—particularly with China.
He welcomed the presence of the China Iron and Steel Association (CISA), noting, “ASEAN governments’ closer collaboration with China’s steel regulators is important.”
He also encouraged ASEAN to draw inspiration from the European Union, saying, “Cooperation among ASEAN Member States on steel will certainly contribute to the creation of an ASEAN integrated market. After all, the European Union started as the European Coal and Steel Community in 1951.”
Liew concluded with a call to action: “If I could plant a seed in your mind in this speech, it is the message that the world does not need a global steel trade war. In the changing geoeconomic landscape, ASEAN has agency and we should act in concert.”
“We need a global coalition for clean and green steel, and I sincerely hope ASEAN Member States could take the lead to build the platform for such cooperation to take place.” - September 29, 2025
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