Malaysia: iron and steel industry to perform better this year

Malaysia: iron and steel industry to perform better this year. The iron and steel industry is expected to perform better this year, with demand going up, boosted by the pick-up in the construction sector. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said a new investment of RM300 million by a Malaysian company is expected for this industry over the next one to two years. Approved total investments in the metal industry for 2009 amounted to RM3.96 billion, a significant drop from RM26.84 billion recorded in the previous year. Exports of metal products for 2009 declined to RM23.36 billion from RM30.11 billion in the previous year. Iron and steel exports last year amounted to RM8.82 billion. Non-ferrous metal exports accounted for RM5.71 billion while fabricated metal exports amounted to RM8.83 billion. "However, industry players have expressed concern over potential competition from China. "China represents 50 per cent of the world iron and steel production," Mustapa said at a press conference after the ministry's dialogue with associations from the iron and steel industry. Mustapa said the government will not backtrack its commitment under the Asean-China Free Trade Agreement.