Malaysia is taking a firm stand against tax evasion in its steel industry. With the launch of the Malaysian Anti-Corruption Commission’s (MACC) “Ops Metal” operation this month, an enforcement action to address widespread evasion of the country’s 15 percent export duty on scrap metal, the country is cracking down on the illegal export of scrap metal. Backed by the Malaysian Steel Association (MSA), the initiative is designed to restore market fairness, protect domestic supply chains, and prevent significant tax losses.
According to the MACC, illegal scrap exports have resulted in tax revenue losses of more than MYR 950 million ($224,33 million) over the past six years, undermining national fiscal stability and eroding market confidence.
Emphasizing that scrap metal is essential for low-carbon steel production, MSA stated that the illegal outflow of this vital resource creates multiple risks for the domestic market including raw material shortages for steelmakers, increased input costs, reduced competitiveness, disrupted production volumes, and a negative impact on sustainable steel goals.