We all know Malaysia’s investment, trade and industry ministry (MITI) has of late been pushing for more localisation in automotive local assembly (CKD); now, according to a Bernama report, it seems that the use of Malaysian steel is going to be one of the focus points moving forward.
Deputy minister Sim Tze Tzin yesterday said at an iron and steel industry conference that the new customised incentive mechanism (NCM) that will be implemented next year will encourage carmakers to increase local sourcing, including replacing imported steel with locally-produced materials.
“If they want to enjoy our excise duty, lower excise duties, then they have to really, really go deep into localisation – genuine localisation,” he said, adding that Malaysia’s iron and steel industry traditionally focused on construction and infrastructure.
