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The green steel supply chain is gradually starting up in Malaysia, largely due to stricter government policies related to decarbonization. One of these policies is a two-year moratorium on all expansion and diversification of manufacturing activities in the iron and steel industry.
A big push from exemptions
The moratorium was imposed in last August to address the oversupply of steel, as well as to provide a “timeout” for steelmakers to reconfigure their businesses in line with the country’s decarbonization agenda, according to the government.
Nearly eight months later, market participants point out that the government’s move to grant exemptions to steel manufacturing licenses aligned with its decarbonization agenda, like low-carbon iron and steel products or carbon-reduction technologies, serves as a big push for steelmakers to invest in such technologies.
