Machinery & Metal – Basic Metal Products

The basic metal products industry in Malaysia serves as a crucial input source for various manufacturing sectors like machinery and equipment (M&E), transport equipment, medical devices, energy, communication devices, and scientific equipment. It encompasses non-ferrous metals such as aluminium, copper, lead, as well as precious non-ferrous metals like gold, silver, and lithium. These metals find applications in high-end industries, such as electrical devices, structural applications, and refractory materials.

The ferrous metal products (iron and steel) sub-sector, well-established and utilised in infrastructure, construction, and manufacturing, remains mature. In 2021, global steel demand reached 1.85 billion tonnes, with Southeast Asia standing as one of the largest steel-consuming regions. Though steel demand declined by 10.6% in 2020, Southeast Asia’s demand remained robust.

While the World Steel Association projects a slight decline in global steel demand due to various factors, Malaysia’s revised policy aims to bolster the domestic supply chain, particularly for high-end products like stainless and alloy steel. The Government is focusing on transforming the industry through sustainable technologies to achieve carbon neutrality by 2050. The non-ferrous metal sector, driven by the EV ecosystem’s development and the “Commodities of the Future,” offers ample opportunities for investors. It’s essential for investors to consider adopting ESG principles due to market trends and regulatory requirements, as showcased by industry players like Press Metal Aluminium Holdings Bhd., Ann Joo Resources Bhd., Southern Steel Bhd., and Malaysia Steel Works (KL) Bhd.