Malaysia’s Steel Industry Roadmap 2035 aims to reduce overproduction, strengthen the industry, and shift to low-carbon practices to meet net zero goals. In the short term, it will pause new projects, tighten rules, and crack down on non-compliance, while also boosting local raw materials, green financing, and industry partnerships.
The roadmap, unveiled by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz at the Asean Policymakers Conference on Steel and the 2025 Asean Iron and Steel Forum, outlines 15 strategies across three phases: stabilisation from 2025 to 2027, transformation through 2035, and full decarbonisation by 2050.
“In the immediate term, we must stabilise by managing overcapacity, restructuring licensing frameworks, enforcing discipline against illegal operators, securing domestic raw materials, and laying foundations for decarbonisation,” Zafrul said, underscoring the urgency of reform.
From 2027 to 2035, the plan will focus on transforming the steel industry by speeding up carbon reduction efforts, developing green technologies and standards, and investing in innovation. Malaysia also aims to lead the region in cutting industrial emissions, supported by strong policies and the right infrastructure.
“Beyond 2035, the aim is a fully green steel sector by 2050, mobilising talent and capital to keep Malaysia’s steel industry competitive and resilient,” Zafrul added, framing the long-term vision as both an economic imperative and a sustainability commitment.
By 2050, the steel industry is expected to complete its green transition, aligning with the New Industrial Master Plan 2030, the National Energy Transition Roadmap, and Malaysia’s net zero targets.
Despite Asean steel demand being projected to reach 80 million tonnes by 2025, structural imbalances persist, including oversupply in long products and reliance on imports for flat products. To strengthen regional resilience, Malaysia proposed the creation of an Asean-wide database on capacity and utilisation, a harmonised decarbonisation pathway with common green steel standards, and safeguards for regional scrap flows.
“SIR2035 (Steel Industry Roadmap 2035) is not only a policy document, but also a national contract for our sustainable future, as well as future generations’ socio-economic well-being and resilience,” Zafrul said, positioning the roadmap as a generational commitment.
Source: The Edge Malaysia
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<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
