Govt ready to offer more incentives to steel manufacturers
PETALING JAYA: The government is prepared to offer fresh incentives to Malaysian steelmakers investing in higher-value products, including automotive-grade steel and high-tech components, as the industry faces stiff import competition and pressure to upgrade its capabilities.
The Malaysian government is prepared to offer additional incentives to steel manufacturers seeking to invest in higher-value products such as automotive-grade steel and specialized components. This follows the industry's struggle against import competition and the need to upgrade capabilities. Malaysia's steel industry is valued at around RM35 billion, accounting for 1.7% of the country's GDP.
Deputy Minister Sim Tze Zin stated that manufacturers face pricing pressure from imported steel, underscoring the importance of shifting towards higher-margin segments. Existing incentives, including pioneer status and investment tax allowances, will continue to be offered, with the potential for further assistance for those wishing to produce more complex products.
The government is also developing a dedicated incentive mechanism, the New Customised Mechanism, to encourage vehicle manufacturers to increase their use of locally produced components, including steel. Malaysia currently imports around 60% of its steel requirements, and efforts are being made to strengthen domestic production and reduce reliance on imports.
The government recognizes the potential growth opportunities in industries such as aerospace and automotive, where high-tech steel components can offer strong profit margins.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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