Highlights

• Malaysia’s Steel Industry Roadmap 2035 to trim overproduction and aim for a low-carbon transition.
• The strategy includes stabilisation by 2027, transformation through 2035, and full decarbonisation by 2050.

Malaysia has launched the Steel Industry Roadmap 2035 (SIR2035) to deal with overproduction and move the sector towards a low-carbon future.

The roadmap was presented by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz during the Asean Policymakers Conference on Steel and the 2025 Asean Iron and Steel Forum.

The plan will be carried out in gradual stages for stabilisation, transformation, and eventual decarbonisation.

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On one hand, in the first phase (2025–2027), the government will pause new projects, impose more stringent rules on licensing, and penalise operators who disregard regulations.

On the other hand, the use of domestic raw materials will be expanded, green financing will be given more teeth, and industry partnerships will be built as foundations for later reforms.

The minister said these steps are important to stabilise the industry and prepare for the shift to cleaner production methods.

From 2027 to 2035, the roadmap enters its transformation stage. During this period, the steel sector will implement low-carbon technologies, develop green standards, and invest in innovation.

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The goal is for Malaysia to play a larger regional role in reducing industrial emissions, supported by policies and infrastructure designed to encourage long-term competitiveness.

Looking ahead, the vision for 2050 is a fully green steel sector that is resilient, competitive, and aligned with the country’s net zero targets.

This ambition is linked with broader frameworks, including the New Industrial Master Plan 2030 and the National Energy Transition Roadmap. By that time, Malaysia expects its steel industry to have completed a full transition to low-carbon practices.

At the regional level, Malaysia has proposed the creation of an ASEAN-wide database to monitor capacity and production, along with the adoption of common green steel standards.

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It also called for safeguards on scrap flows, which are viewed as critical for regional supply balance. These measures are presented as part of a strategy to ensure that ASEAN nations share a coordinated path towards decarbonisation.

Minister Zafrul described the roadmap as a “national contract for a sustainable future,” which links industry transformation with the socio-economic well-being of future generations.

Ends/

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Source: The Edge Malaysia