Malaysia’s Ministry of International Trade and Industry (MITI) is making revisions to its iron and steel policy to benefit domestic market players in the long term, according to media reports. MITI aims to form the basis for an iron and steel policy to develop a more competitive and sustainable industry.
Accordingly, the ministry will tighten the conditions for the issuance of new manufacturing licenses, and extend the current duty structure, including the duties on long and flat products ranging at 5-15 percent. MITI also plans to implement a 15 percent export duty on ferrous scrap.
MITI aims to make options for import duty exemptions for export purposes through licensed manufacturing warehouses and a free zone. Stricter consideration will be imposed on manufacturing licenses for scrap metal recycling activities. Manufacturing license holders undertaking recycling activities will be allowed to import scrap for iron and steel, copper and aluminum, while traders are not allowed to import the given raw material.
The revisions will be applicable until December 31, 2021, and may be considered for the country’s new Industrial Master Plan 2021-2030, as SteelOrbis understands. Local market players have welcomed the revisions which cover the entire value chain and which will benefit the industry in the long term.