Deputy Investment, Trade and Industry Minister Liew Chin Tong told the Dewan Rakyat on Monday (Nov 18) that the overcapacity of steel and iron production in the Asean region and the impacts on Malaysia’s steel industry will be looked into by an independent committee.
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00:00Thank you, Mr. Chairman, and thank you for the answer from the Honourable Prime Minister.
00:06It's clear, and the Honourable Minister also touched on the initiative taken by the Ministry,
00:13specifically in the face of the delay issue earlier.
00:18We, I think, cannot avoid the delay from happening from time to time.
00:22This is not a new subject, a new thing that has just happened when the economy has improved.
00:28Is the Ministry able to agree that if the government takes a more long-term approach,
00:39such as implementing R&D with industry-to-industry,
00:46implementing knowledge transfer that we usually hear with permission,
00:51can this approach be seen as a long-term solution to the issue of delay or overcapacity in the manufacturing sector?
01:07Thank you, Mr. Chairman.
01:08Thank you, Honourable Speaker.
01:12Indeed, when the government meets with investors from China,
01:18our message is not to enter Malaysia just to trade or pass through,
01:26to build factories here without additional value,
01:29and then export with the intention of exporting to the US.
01:34This will not succeed for the US,
01:38because the global context has changed,
01:40especially in the context of the US government being dominated by President Trump.
01:46Therefore, the message and message of the government is
01:49it is better for us to have a shared partnership between China and Malaysia to build R&D,
01:59to have a joint effort that helps both parties,
02:04and with a deeper localisation.
02:08This is an effort that we are doing with foreign investors, especially those from China.
02:16The steel and coal sector is facing a problem not only in our country, but all over the world,
02:26especially in Southeast Asia.
02:29The capacity in Southeast Asia for steel and coal will increase or double in 5-6 years.
02:37In 2021, the total capacity in Southeast Asia is 75 million metric tons per year.
02:44But if all the capacity has been promised or agreed upon,
02:52if all of them start production,
02:58the total capacity in Southeast Asia will reach 150 million metric tons by 2027.
03:05We are concerned about the capacity of steel and coal in Southeast Asia,
03:12especially in the context of China's economic downturn,
03:19especially in the construction and real estate sector.
03:29This is the concern of the government.
03:32Therefore, the government and MITI have appointed a free government.
03:41The free government has prepared a report that will be announced by MITI soon.
03:49The report will give a clear direction for our country to deal with the issue of overcapacity in steel and coal.