Malaysia Steel Association tasked by Miti to formulate green transition roadmap for industry

• Liew said the roadmap will include policies and pathways to assist the iron and steel sector to commence the transition towards reducing its carbon footprint.

KUALA LUMPUR (July 25): The Malaysia Steel Association (MSA) has been tasked by the Ministry of Investment, Trade and Industry (Miti) with formulating a “Green Transition Roadmap” for the country’s iron and steel industry.

The association said it was given the responsibility at a Malaysia Steel Council (MSC) meeting last week, chaired by Miti Deputy Minister Liew Chin Tong, which had focused on the need for the local steel sector to strengthen its Decarbonisation and Environment, Social and Governance (ESG) disclosure and compliance of Scope 1, 2 and 3.

“Sources of funding to help the steel sector transit to lower carbon emission are to be addressed in the Green Transition Roadmap, which will be integrated with the New Industrial Master Plan 2030 (NIMP) and i-ESG policy documents,” said MSA in a statement on Monday (July 24).

It added: "The Malaysian steel industry engages in the strategic role as a significant contributor to Malaysia’s export revenue and GDP by being the key components of the supply chain to the vast construction and engineering industries and its subsectors."

MSA said it was thankful to Miti to be given the responsibility to work with the Malaysia Steel Institute and other associations to complete the roadmap to improve the competitiveness and sustainability of the Malaysian steel sector.

At the MSC meeting on July 21, Liew said the roadmap will include policies and pathways to assist the iron and steel sector to commence the transition towards reducing its carbon footprint.

It is also expected to include policy recommendations on the carbon pricing ecosystem, ESG compliance and reporting, and financing structures from public and private sources that will facilitate the iron and steel sector in its green transition.

MSA members constitute 75% of upstream steelmaking capacity in Malaysia and its products are used extensively for further processing for the construction, engineering, and oil & gas sectors which generate annual sales exceeding RM10 billion.