The Malaysian government has officially launched its Steel Industry Roadmap 2035, setting out a comprehensive 10-year strategy to transform the domestic steel sector into a globally competitive, technologically advanced, and environmentally sustainable industry.
Developed by the Ministry of Investment, Trade and Industry (MITI) in collaboration with key industry stakeholders, the roadmap establishes a strategic framework for economic growth, industrial modernization, and climate action. It aims to upgrade production capacity, accelerate digitalization and green transformation, and integrate Malaysian steel more deeply into global value chains.
Six strategic pillars for sector transformation
The roadmap is structured around six core thrusts that target the modernization and decarbonization of Malaysia’s steel sector.
- The plan calls for technology upgrades, productivity improvements, and industry consolidation to strengthen domestic steelmakers. This will enable Malaysian producers to compete globally on cost, quality, and innovation.
- The roadmap supports a shift toward sustainable production, focusing on energy efficiency, increased scrap utilization, and breakthrough technologies such as hydrogen-based direct reduced iron (DRI) to cut emissions.
- Malaysia aims to build a self-sufficient domestic ecosystem, linking upstream, midstream, and downstream segments to reduce import dependency and create more resilient supply chains.
- Promoting smart manufacturing, automation, and digital platforms will raise operational efficiency and innovation capacity, positioning Malaysia as a technologically advanced steel producer.
- The roadmap seeks to diversify export markets, leverage trade agreements, and align with global standards, positioning Malaysia as a regional steel hub.
- Targeted education, training, and research programs, in partnership with universities and technical institutes, will help build a high-skilled workforce and strengthen innovation.
Supporting economic growth and industrial resilience
Malaysia’s steel sector plays a strategic role in national development, underpinning construction, infrastructure, automotive, and manufacturing industries.
The roadmap envisions significant capacity upgrades and green investments to ensure the sector can meet future domestic demand while competing globally.
It aligns closely with the National Energy Transition Roadmap (NETR) and Malaysia’s broader net-zero climate objectives, emphasizing renewable integration, low-carbon technologies, and decarbonization pathways to lower emissions while sustaining growth.
Leadership commitment and industrial policy milestone
“The Steel Industry Roadmap 2035 is a critical step towards modernizing Malaysia’s steel sector. By embracing innovation, sustainability, and competitiveness, we can position our steel industry as a key pillar of Malaysia’s economic transformation and regional leadership,” Tengku Zafrul Aziz, minister of investment, trade and industry, said.
The roadmap supports Malaysia’s ambition to boost industrial resilience, attract foreign and domestic investment, and position itself as a regional hub for sustainable steel production. Implementation will involve close coordination between government agencies, industry associations, and research institutions, with regular progress reviews to ensure targets are met.