Malaysia has committed to strengthening its climate ambition through Nationally Determined Contribution since 2016. Yet, significant challenges from hard-to-abate industries remain. While the steel industry plays a critical role in national development, it is also among Malaysia’s largest industrial sources of greenhouse gas (GHG) emissions.
At the same time, Malaysia’s climate governance remains underdeveloped. The Climate Change Act, which is supposed to address GHG emissions, has faced continuous delays, and existing voluntary compliance mechanisms are largely inconsistent. There is no mandatory requirement for all steel producers—especially small and medium enterprises and foreign-owned companies operating through private corporate structures—to publicly disclose emissions data, exposing national reporting to underreporting. Moreover, the presence of political influence and government-to-government arrangements in the industry, often framed as strategic planning, further exacerbates the challenges in climate governance.
Given this context, “Malaysia’s Steel Industry and Climate Commitments: Governance, Gaps, and Pathways” examines the governance framework surrounding Malaysia’s steel industry and assesses how continued high-emission practices undermine the country’s climate objectives. The study further examines existing governance loopholes in the steel industry with particular focus on disclosure requirements, emissions governance, and political interference.
Read the full report below.
