[SMM Iron & Steel] Malaysia Targets Higher-Value Flat Steel Output Shift

Published: Apr 23, 2026 11:37

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Malaysia is aiming to pivot towards higher-value flat product production in its latest industrial policy (NIMP 2030) update, intending to decrease its dependence on commodity-grade imports. This strategic shift includes various incentives designed to encourage the upgrading of existing facilities to manufacture automotive and special industrial grade steel, such as a Special Tax Rate (STR), Investment Tax Allowance (ITA) reductions, and potential exemptions from any capacity freeze orders. Given Malaysia's previous role as a substantial importer of flat products from neighbouring regional hubs, this policy is anticipated to significantly impact regional trade dynamics as the nation strives to balance its trade deficit and bolster domestic manufacturing capabilities.

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