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| SEAISI |
SEAISI warns of long-term risks from unchecked steel imports and calls for decisive government intervention
The South East Asia Iron and Steel Institute (SEAISI) has issued a sharp warning about the rising threat posed by Chinese steel overcapacity and surging imports into Malaysia, calling for immediate and coordinated government action. Despite submitting a comprehensive review, SEAISI says Malaysia’s Ministry of Investment, Trade and Industry (MITI) has yet to respond meaningfully.
In a statement released in early May, SEAISI criticized the inaction of MITI’s Independent Steel Committee, saying no tangible steps have been taken to counter the impacts of growing Chinese steelmaking presence in Malaysia and neighboring ASEAN countries.
“Coordinated intervention is urgently needed to prevent long-term damage to the industry and safeguard national production capabilities,” SEAISI emphasized.
Malaysian Steel Industry at Risk
The Malaysian Iron and Steel Industry Federation (MISIF) echoed SEAISI’s concerns, urging the government to implement bold and decisive measures to protect domestic manufacturers from unfair trade practices and mounting operational burdens.
Publicly listed steel producers in Malaysia are reporting financial distress, which SEAISI warns could escalate into systemic risks for the stock market and banking sector if left unaddressed.
SEAISI pointed to chronic overcapacity—fueled by past policy decisions—as a fundamental issue threatening regional supply-demand balance. They urged Malaysian policymakers to learn from other nations. For example, the UK Parliament recently passed emergency legislation enabling the government to take control of British Steel, which is owned by China and deemed critical to national infrastructure.
Urgency for Policy Reform
SEAISI is calling for protective measures that include anti-dumping enforcement, import safeguards, and policy tools to rationalize local industry. They argue that without immediate government intervention, Malaysia risks losing strategic production capabilities and industrial competitiveness.
“Government leadership is essential in developing a coordinated, long-term solution,” SEAISI concluded.
With ASEAN steelmakers already operating in a volatile global market, stakeholders warn that inaction could lead to irreversible damage to Malaysia’s iron and steel value chain.
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