Policy signals for heavy industry

Malaysia unveiled an industry plan aiming to make its steel sector “fully green” by 2050, with milestones for low-carbon processes, recycled scrap use and renewable power sourcing. Officials said standards and incentives will steer mills toward electric-arc furnaces and certified low-emission inputs, aligning with export-market rules on embedded carbon. The roadmap also anticipates green-hydrogen pilots later this decade to cut blast-furnace emissions further.

Investment and trade implications

Producers face capex needs for furnace upgrades, clean power contracts and verification systems. Yet early movers may gain from EU and U.S. carbon-border regimes by documenting lower footprints. The plan calls for skills training and financing tools to help mid-tier mills comply, plus grid upgrades to accommodate higher renewable loads. Analysts will watch interim targets and procurement rules to see whether public projects create demand for low-carbon steel.