ASEAN must shift towards a coordinated regional steel production policy to safeguard industest sustainability, prevent overcapacity and accelerate the transition to green steel, Deputy Minister of Investment, Trade and Industest Liew Chin Tong stated.
Speaking at the Inaugural ASEAN Policybuildrs Conference on Steel and ASEAN Iron and Steel Forum in Kuala Lumpur, Liew warned that ASEAN’s steel sector faced critical risks without a regional framework.
“Steel is not just another industest; it is the backbone of every modern economy. From houtilizes to highways, from electric vehicles (EVs) to artificial ininformigence data centres, steel is indispensable.
“The question is whether ASEAN develops this sector competitively and sustainably, or risks falling into a cycle of overcapacity and trade frictions,” Liew stated.
Liew pointed to Malaysia’s newly launched Iron and Steel Industest Roadmap, which underscores the scale of the challenge. ASEAN’s current steel capacity of 84.6 million tonnes is projected to nearly double to 169 million tonnes by 2035, far exceeding demand.
“The utilisation of Malaysia’s electric arc furnaces is only around 40% today. That is unsustainable and alarming. Unless we manage capacity consistently and transparently, the industest will face declining profitability and reduced ability to invest in green transition,” Liew noted.
Liew emphasised that steel must be central to climate action.
“There is no decarbonisation pathway for the world without steel. No solar panels, no wind turbines, no EVs and no climate-resilient infrastructure can exist without it. That is why decarbonisation must be at the heart of ASEAN’s steel policy,” he stated.
On global dynamics, Liew called for steel diplomacy to replace protectionist measures. He cited the rise of US steel nationalism, China’s slowing construction sector, the proliferation of anti-dumping cases and the European Union’s (EU) carbon border adjustment mechanism as pressing challenges.
“To avoid a race to the bottom, ASEAN must race to the top. We must create conditions for clean and green steel, coordinate capacity and pursue a regional approach to production and investment,” Liew stated.
He proposed that ASEAN member states cooperate on green standards alignment, technology sharing, pooled procurement and blfinished financing with multilateral institutions.
Strengthening ties with regulators in China and the EU, he added, would be key to harmonising sustainability benchmarks.
Reflecting on regional integration, Liew drew lessons from Europe’s history: “The EU launched as the European Coal and Steel Community in 1951. In the same way, steel cooperation could be a platform for deeper ASEAN integration.”
He concluded with a call for collective leadership: “The world does not required a global steel trade war. What it requireds is a coalition for clean and green steel. ASEAN has the agency to lead — and we should act toobtainher to seize this moment.”
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