MITI To Unveil Report On China’s Iron And Steel Overcapacity Impact - Liew

KUALA LUMPUR, Nov 18 (Bernama) -- The government, through the Ministry of Investment, Trade and Industry (MITI), will soon release the findings of a report examining the impact of excess capacity from China, particularly in the iron and steel sector.

Deputy Minister Liew Chin Tong said the report was prepared by an independent committee established by MITI.

He added that the issue of dumping Chinese-manufactured products, driven by the country's economic slowdown, especially in the construction and real estate industries, is a concern not only for Malaysia but globally.

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"Capacity in Southeast Asia for iron and steel is set to rise over the next five to six years. In 2021, total capacity in the region was 75 million metric tons, with the potential to more than double to 150 million metric tons by 2026.

"The independent committee has prepared the relevant report for MITI, which will provide direction on addressing the issue of excess capacity in the iron and steel industry," Liew said in response to additional questions from Datuk Seri Saifuddin Abdullah (PN-Indera Mahkota) during an oral question and answer session in the Dewan Rakyat today.

Saifuddin sought details on the government's specific plans to address the dumping of iron and steel products and their production in China.

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Liew also noted that between 2015 and 2023, the government imposed nine anti-dumping measures and three protective measures against products imported from China, including iron and steel, plastics and construction materials, which have caused significant harm to Malaysia's domestic industry.

"The government is also investigating four iron and steel products and plastics for potential anti-dumping violations arising from overcapacity in China's manufacturing sector.

"The investigation aligns with Malaysia's domestic laws and regulations, as well as with agreements under the World Trade Organisation," Liew explained, responding to a question from Datuk Seri Utama Ir Hasni bin Mohammad (BN-Simpang Renggam).

Hasni had inquired about the measures taken by the government to protect the local industry from the effects of China's overcapacity, including price pressures on local products and the potential hindrance to the growth of Malaysia's manufacturing sector, as well as strategies to ensure the long-term competitiveness of the Malaysian industrial sector.

Liew said MITI has also announced the revision of Act 504 and the Countervailing and Anti-Dumping Duties Regulations 1994 to better align with current international trade practices.

This revision aims to create a more conducive regulatory environment, positioning Malaysia as a sustainable business hub.

Additionally, MITI has launched the Trade Remedies Investigation Management System (TRIMA), a digital Single Window platform designed to modernise trade remedy investigations. 

TRIMA will streamline the investigation process and reduce inquiry durations, potentially shortening the current statutory nine-month timeframe.

-- BERNAMA