Malaysia Urges ASEAN Regional Cooperation to Address Steel Overcapacity by 2030

ASEAN faces significant challenges in its steel industry, including oversupply, reliance on imports, and the environmental impact of production, with current capacity projected to far exceed demand by 2035. Malaysian officials, including Minister Tengku Zafrul Aziz and Deputy Minister Liew Chin Tong, have emphasized the need for a coordinated regional approach to steel production, capacity management, and decarbonization to ensure sustainability and competitiveness. The newly launched Steel Industry Roadmap 2035 aims to restructure Malaysia's steel sector in alignment with national and regional climate goals. ASEAN is encouraged to lead in 'steel diplomacy' to avoid trade conflicts and promote clean, green steel technologies through regional cooperation and shared investment. The sector is recognized as strategic for economic growth and climate action, with calls for high standards, technology sharing, and blended financing to support a green transition. Overall, ASEAN must develop a transparent and consistent framework to manage steel capacity and environmental impact in a rapidly evolving global trade and climate landscape.