ASEAN Urged To Forge Regional Steel Alliance For Greater Integration

KUALA LUMPUR, Sept 29 (Bernama) -- ASEAN member states should forge stronger regional cooperation in the steel industry to accelerate the creation of an ASEAN integrated market, as well as overall integration.

Malaysian Investment, Trade and Industry (MITI) Deputy Minister Liew Chin Tong said ASEAN can cooperate on decarbonisation roadmaps, technology sharing and pooled procurement to build regional steel alliances.  

“So far, ASEAN member states have been treating investment in the steel industry as private investments, viewing higher foreign investment and higher growth of output and export of steel as positive outcomes.

"But stopping at these goals may lead to a race to the bottom in terms of more capacity and more investments into blast furnaces, hence more carbon emissions and more trade frictions, as well as potentially trade wars, which becomes a vicious cycle," he said.

Liew said this in his special address at the ASEAN Policymakers Conference on Steel and the 2025 ASEAN Iron and Steel Forum on Sustainability and Construction on Monday.

He said this is the time for ASEAN to adhere to the highest standards, create conditions for clean and green steel, coordinate capacity and pursue a regional approach to steel production and investment, including finding blended financing together.

"In the changing geoeconomics landscape, ASEAN has agency, and we should act in concert.

"We need a global coalition for clean and green steel, and I sincerely hope ASEAN member states could take the lead to build the platform for such cooperation to take place," he said.

Liew added that MITI Minister Tengku Zafrul Abdul Aziz will launch the Iron and Steel Industry Roadmap later Monday.

-- BERNAMA