No. 1/March 2016

MSI FOREWORD

SAFEGUARDS
Introduction
An article in the first print of the MSI
newsletter (No.1/December 2014) provided
an introduction to safeguard measures
under the WTO. It was mentioned thatthe safeguard, considered as a temporary
measure, aims to curb sudden increases
in imports that the domestic industry
is unable to cope with and is suffering
serious injury from, to allow for adjustment
to meet competition.
Legal Basis for Safeguard Application
In Malaysia, the legal basis for the rightto request for a safeguard investigation
rests with the Safeguards Act 2006 (Act657), herein referred to as the Act, andthe Safeguard Regulations 2007, hereinreferred to as the Regulations.
Section 10 of the Act provides that therequest for an investigation may beinitiated upon a written petition by or on
behalf of the domestic industry, or, on theinitiative of the Government. Regulations
3(1) provides the information to becontained in the petition.
Among others, the information the petition
will need to include are the names andaddresses of the other producers; adetailed description of the imported
product targeted for the safeguard
measure coverage that will determine
the scope of the investigation (Product
Under Investigation) – its volume andtrend; and of course the domestically
produced products termed as Like
Products and the Directly Competitive
products - the detailed description andits uses; names of importers; serious
injury or threat of serious injury to thedomestic industry; causal link between

increased imports and serious injury; an
explanation on unforeseen developmentsthat have resulted in increased imports;
and adjustment plans for the duration of
the proposed imposition of the safeguard
duty.
Besides these, additional factors to beconsidered include:–– Tariff obligations at the WTO thathave been incurred by the imposing
country;–– Public interest; and–– Public Hearing.
Serious Injury
There are generally eight (8) factors thatwill have to be examined when determining
serious injury to the domestic industry
namely:•Rate and amount of increased
imports;•
Market share to the imports;•
Change in sales level of domestic
industry;•
Production levels;•
Productivity;•
Capacity utilisation;•
Profits & losses; and•Employment.
Of course other factors, among others,
that can be examined are inventory andreturn on investment.
Threat of Serious Injury
If the safeguard measure is requested
based on “a threat of serious injury”,
the petition will need to show factors to
support the claim. Among others, it should
show the actual and potential export
capacity of the countries of export origin;
the build-up of inventory of the exporting

This being the first edition of the MSI Steel
Advocate for 2016, MSI would like to wish
everyone a more successful year with betterbusiness opportunities.
We expect the year 2016 to be morechallenging, for both the industry and MSI. This
year MSI will be actively looking into starting
developmental aspects of the iron & steel
industry in Malaysia.
In the last issue of this publication wementioned the outcomes of the Mini-Lab
facilitated by PEMANDU that had identified
numerous areas to be looked into to bring about
a conducive environment for all the stakeholders
to focus on developmental aspects of theiron & steel industry, thereby requiring closer
interaction and collaboration among them.
While these are difficult areas, they cannot be
postponed any longer as initiatives have to be
ventured into in order for the Malaysian iron &steel industry to not only survive the onslaughtof imports but also to move to the next level tomeet competition and try to look beyond ourborders for opportunities.
In embarking on these initiatives, it is ourardent hope that it will help push the envelope
for the local iron & steel industry towards more
resilience and sustainability in the immediate,
mid and long-term.
We have to be cognizant of the fact that theseoutcomes of the Mini-Lab were a result ofintense discussions by all the stakeholdersof the industry - upstream, midstream,
downstream, traders and users, including therelevant government ministries and agencies.
The outcomes of the Mini-Lab that need to betaken up include:i.

Promoting Industry Consolidation Efforts– MSI has planned to bring together
industry players who have the potiental
to consolidate and synergise to unify theindustries’ interests/needs with the aim ofbuilding resilience against external shocks and cyclical downturns;ii.

Enhancing Industry Relations Between
Steel Millers and End Users – where top
100 local end users (including players
from Upstream, Midstream, Downstream& Distributors) will be identified to gauge
local demand for steel products and toincrease Apparent Steel Consumption
(ASC)
in
the
domestic
market.
Associations from the construction andindustrial sector will be consulted in theprocess;

TABLE OF CONTENTS
1.
2.
3.
4.

MSI Foreword
Safeguards
Voluntary Standards VS Mandatory Standards
A Brief Look At Emerging Steel Market Trends in ASEAN and
Malaysia - By S.H. Yan
5. MSI: Industry Lead Body for Iron & Steel Efforts
6. Event: MSI Engages with the Iron & Steel Industry on theTrans-Pacific Partnership Agreement (TPPA) and in Exploring
Export Promotions
7. Events and Activities

pg 1
pg 1
pg 3
pg 5
pg 7
pg 8

pg 8

1

iii.

Developing the National Occupational Skills Standards(NOSS) – where skills standards and curriculum aredeveloped for the I&S industry. For this year, we havetargeted the forming sub-sector which currently does
not have any NOSS in place. Additionally, MSI will
also be embarking on publicizing “Recognition of Prior
Achievement” which provides the opportunity for thosewith enough experience to convert it into recognizedskilled certificates;iv.

Having Special Trade Missions to Myanmar incollaboration with MATRADE for the Iron & Steel Sector– where those I&S industry players who are interested
in exporting to Myanmar will be able to explore
business and export opportunities there;v.

Continuing publications of MSI’s Newsletter (The
Steel Advocate) and Newsflash (The Steel Board) todisseminate information and provide up to date news
on developments in the I&S Industry;vi.

Focusing on development of standards – at least seven(7) standards specifically for the iron & steel industry
have been targeted to be developed; andvii. Having Trade Remedy Advisory Services – where trade
remedy petitions are prepared based on requests; oron how to respond if our exporters are hit with trademeasures.
Of course for all these to be successfully carried out, theindustry support, cooperation and involvement is a must;otherwise, all these will remain as plans. To this end MSI
is looking for the full support of the industry to assist inbuilding a strong, resilient and sustainable iron and steel
industry in Malaysia.

Cont. from page 1
country; and the probability that the export of the product under investigation will enter the domestic market in increasing quantities.
The requirements to justify and support the claim of “a threat of serious injury” is in actual fact more stringent than the request /petition made on ‘serious injury’.

Time-line for the Safeguard Investigation––

Petition examined to determinethat all requirements are fulfilled––

Notice of initiation transmitted to
WTO Safeguard Committee
On site visit to local producers/
importers
Public Hearing conducted

––
––
––
––
––
––
––
––
––

Analyse submission-imports,
serious injury and causal link
Notice of PD is issued
Provisional SG measure imposed

OFFICIAL PETITION RECEIVED
30 ( + 30 ) DAYSINITIATE INVESTIGATION
90 ( + 30 ) DAYSPRELIMINARY DETERMINATION

Consultations with interested
parties upon request
Notice of FD is issued andCustom Order gazetted
Final SG measure imposed
Notify WTO SG Committee

200 DAYS
FINAL DETERMINATION

Exemption from SG measure: Only for developing countries
The safeguard measure is applied on all import sources – meaning it is a global application and not selective by targeting specificcountry/countries. However, under Article 9.1 of the WTO Agreement on Safeguards (ASG), the SG measure will not apply todeveloping countries with imports that do not exceed 3% individually and that those developing countries with less than 3%collectively do not account for more than 9% of the total imports.
Special and Differential Treatment for Developing Countries in Implementing Safeguard (SG) Measures
Under the ASG, developing countries are given special & differential treatment in terms of length of SG measures imposed, besides
the exemption from the SG duty as mentioned earlier. The following is some information on SG measures:
Forms of SG Measures
SG measures can take two forms:
Tariff: Increase in tariff over
and above the MFN Appplied
Rate and progressively
liberalized at regular intervals

2

Quatitative Restriction:
Quota based on average ofimport volume over last 3
representative years

Length of SG measures: developing countries are given an additional two (2) yeas in keeping the
SG measure i.e. 4 years + 4 years + 2 years (additional) = 10 years.

Can an SG Measure be Re-Applied After Expiry?
Yes but with these conditions:–– Two-Year Break: May not be applied again after a twoyear period; or, for the full duration of the previously
applied period – whichever is greater; and–– One-Year Break: If the SG measure has lasted only for
180 days or less and has not been applied more than
twice in a 5-Year period, then it can be applied for again
only after a one (1) year break.
How does a Safeguard Measure Differ from an AntiDumping Measure?
The following table captures the differences:
Basic Action

Form of Measure

Duties or priceundertaking- Can be increased
or decreased
through review

Duties or quotas- Duties can only
go downwards
over period of
application

Affected parties

Company-specificand nationwide

Global - one rate
to allUnforeseen
Development

NONE

Required Reasoned
conclusion

Compensation

NONE

Yes

Public Interest

Under WTO not
mandatory (But
Malaysian Act
requires it)

Mandatory

Adjustment Plan
by Domestic
Industry

NONE

required andmonitoring on
progress by IA
required

Reduction oftariff at regularintervals

NONE

RequiredNone

Required

Anti-Dumping

Safeguards

Unfair Trade
Practice - Pricediscrimination

No claim of unfair
trade practice- Based onincreased imports(Increased imports)

Determinationof Injury on
Domestic
Industry

Material Injury - 15
Factors (Threat ofMaterial Injury)

Serious Injury - 8
Factors (Threat of
Serious Injury)

MeasureDuties or priceundertaking

Duties or quotas

TariffCommitment in
WTO

Affected parties

Company-specificand nationwide

GlobalWho are the main users of Safeguard/Anti-Dumping/Countervailing Measures?

S&D
considerations

No S&D provision.
Same conditions
apply to all:De minimis:<2%
DM
Negligible
Volume:<3%(indv.)
and collectively<7%

S&D Provision
for developing
countries-exemption of SG
measure if:
ImportVolume:<3%(indv.)
or all those <3%
and collectively<9%

The following table provides the top ten users of SG/AD/CVD
measures:

4 years + 4 years(Add 2 years(S&D)) - No
further continuous
extension - need tohave breakDuration

5 years +extension if casewarrants-no limit

Length ofinvestigation
Receipt ofPetition toInitiation;PD;FD

Initiation: 30 days
PD: 120 + 30 days
FD: 90 days

Scope ofCoverage

Like Products/
Substitutable

Initiation: 30+30
days
PD: 90 + 30 days
FD: 200 days
Like Products/
Substitutable& Directly in
Competition

Safeguards

Anti-Dumping

Countervailing

1. India

1. India

1. US

2. Indonesia

2. US

2. EU

3. Turkey

3. EU

3. Canada

4. Jordan

4. Brazil

4. Australia

5. Chile

5. Argentina

5. South Africa

6. Ukraine

6. Australia

6. Brazil

7. Philippines

7. South Africa

7. Egypt

8. Egypt

8. China

8. Peru

9. US

9. Canada

9. China

10. Ecuador

10. Turkey

10. Chile, Mexico,
New ZealandObservation and What Next?
It is very noticeable that it is the developing countries thathave been high users of the SG measure compared to thedeveloped countries. We will delve into this aspect in the next
episode on SG.

VOLUNTARY STANDARDS VS MANDATORY STANDARDS
What is meant by standards?
By definition, standards refers to “a document approved bya recognised body, that provides, for common and repeateduse, rules, guidelines or characteristics for products or related
processes and production methods, with which compliance is
not mandatory; and which may also include or deal exclusively

with terminology, symbols, packaging, marking or labelling
requirements as they apply to a product, process or production
method.” [source: Standards of Malaysia Act 1996 (Act 549)].
Standards can be applied at national, regional or at international
levels. These standards can be applied on a voluntary basis or
made mandatory. Now, what is the difference between the two?

3

Voluntary vs Mandatory
A key difference between voluntary standards and mandatory
standards is that with:•
Voluntary standards: Products that do not meet voluntarystandards can be sold freely with no legal implication ina country; whereas with•Mandatory standards: Products that do not meet theset standard are bound by the law and penalties can be
imposed for non-compliance.
Often, but not always, the requirements of a mandatory
standard are based on an existing voluntary standard. It is illegal
to claim that a product meets either voluntary or mandatory
standards when it does not. This is the reason why a statementof “Compliance with Malaysian Standards does not by itself
confer immunity from legal obligations”.

Mandatory Standards
Features of mandatory standards are as follows:•

Voluntary Standards
Voluntary standards entails the following:
•
•
•
•
•
•

Defined in a collaborative and iterative manner andcontains principles, best practices or requirements for agiven product, activity or its results;
Developed at the request of and with the active supportof any interested party (such as an association and/or a
local authority);
Developed by standards development bodies througha consensus process of a Technical Committee orWorking Group discussion and drafting;
Producers or suppliers may choose to meet some, all ornone of the requirements of voluntary standards;
Likely to denote industry best practices with the safe
design, supply and use of those products; andDo not routinely become mandatory.

Use of voluntary standards
It provides requirements, specifications, guidelines orprocedures to ensure that the materials, products, processes,
systems and services are safe and consistently fit for purpose.
Voluntary standards also establish a common language forbetter mutual understanding and covers subjects on food,agriculture, textile, construction, transport, engineering,chemistry, information technology, energy, the environment
and much more.
Compliance with voluntary standards can potentially benefit
producers and exporters in many ways, so as to ensurethat the materials, products, processes, systems and services
are safe and consistently fit for intended purpose. It mightalso facilitate stronger integration in global value chainsproviding opportunities to improve processing, product quality
and supply capacity. The implementation of certification
requirements encourages producers to improve management
and monitoring systems, increase productivity, implement
good practices and improve resource management.
Voluntary standards can also be included in contracts. In thiscase, compliance with the standard becomes imperative, ofcourse, for the parties involved in the contract, depending on
the agreed contract terms and conditions.
When a government or regulatory authority of the country
concerned decides to develop a mandatory standard, andwhere a voluntary standard often exists, the experts would havealready identified ways to address the safety problem. If thisstep has been taken, then there is a possibility that all or part ofthe voluntary standard may be adopted in the development of
the mandatory standard.

4••

Producers or suppliers are legally bound to comply withall the requirements of mandatory standards;
Mandatory standards establish a minimum set of safety
requirements that all products must meet; andWhile it may be true in some instances, mandatory
standards are not always based on voluntary standards.

Use of Mandatory Standards
Mandatory standards are made for products that are likely to be
hazardous/detrimental in terms of health and safety. In making
mandatory standards, the government protects consumers by
specifying minimum requirements that products must comply
with.
Referencing of Voluntary Standards
The concept of adopting or referencing voluntary standards
in regulations provides many advantages to legislators or
regulators and these are as follows:•
Relieves regulatory authorities of the need to devise new,detailed, or complex requirements relating to materials,
processes, design considerations and criteria, technicalprocedures, test methods, etc. and to avoid duplicationof efforts;•
Permits detailed technical requirements to be embodied
into the text of a regulation simply by referencing a
voluntary standard or the relevant parts of a standard;•
Simplifies and expedites the legislative work and lowers
the cost to government in developing and enforcing
regulations;•
Reduces the lengthiness of regulations and makes themmore manageable;•
Promotes uniformity of technical requirements - asstandards provide the basis for certification so technicalrequirements can be equitably applied;•
Improves responsiveness of regulators to publicconcerns; and•Improves public acceptance of regulations when there isendorsement of existing voluntary standards.
What about in Malaysia?
Malaysian Standards are generally voluntary in nature,developed by interested parties which include: government,
producers, institutions of higher learning, associations andusers. However, they can be made mandatory throughreferencing.
As at 31 January 2015, there are a total of 6,204 published
Malaysian Standards. From this, 416 have been mademandatory by the regulatory authorities. The number of
mandatory standards has increased showing that regulatory
bodies are beginning to see the benefit of standards
development in Malaysia. We need to continue promulgating
and promoting the development of Malaysian Standards to thevarious regulatory bodies for the benefit of all.

A BRIEF LOOK AT EMERGING STEEL MARKET TRENDS IN
ASEAN AND MALAYSIA
By : S.H. Yan

ASEAN and GDP Growth – Regional Comparison
ASEAN is the world’s fastest growing region in terms of GDP
growth rate projected for the period 2015-2019. Figure 1
shows the GDP growth rate comparisons with other parts of
the world. Growth rate exceeds world average in the short andmidterm.
Real GDP Growth (5-year Average)
2000-04

2005-092010-142015-2019

NAFTA

2.7

1.0

2.3

2.7

S.America

2.4

4.2

3.5

2.2

EU28

2.2

1.0

1.0

2.0

CIS

7.1

4.5

3.2

1.2

Africa

4.9

5.3

3.7

4.7

Middle
East

5.2

5.3

3.8

3.9

Asia ex
ASEAN

4.2

4.9

5.3

4.8

ASEAN

5.0

4.8

5.6

5.0

World

2.9

2.3

3.1

3.3

Source: United Nations

Figure 3: Comparison of Urbanization Growth among some ASEAN
countries

Source: HIS,April 2015

Figure 1: ASEAN GDP growth versus the World.

Major factors encouraging growth in ASEAN are population
growth as well as political and economic stability within theregion. ASEAN’s rapid GDP growth has helped to accelerate theurbanization process within the region. ASEAN’s urbanization
rate ranks second after China as illustrated in Figure 2 below:

Urbanization and Apparent Steel Use
There is a strong correlation between Apparent Steel Use (ASU)
and Urbanization Growth as depicted in Figure 4. Apparent steel
consumption grows alongside with urbanization. This does notcome as a surprise as urbanization involves, among others,
the shift from rural to urban areas through the development of
new infrastructure for businesses, industries, transport, living
spaces - all of which to accommodate a growing population.
Connectivity also is a key growth area in urbanization to enable
movement of people and goods within the urban area. This isreflected in the greater demand for personal vehicles, public
transport and commercial vehicles.

Source: United Nations

Figure 2: Comparison of Urbanization Growth

Urbanization Trend
According to the data provided by the United Nations,urbanization growth will continue in the upward trend forthe next 5 years to 2020. Among all the countries in ASEAN,
Malaysia has the highest urbanization growth as illustrated in
Figure 3. Malaysia’s urbanization growth will continue rapidly,
well into the year 2020.

Source: United Nations & Worldsteel

Figure 4: ASU Versus Urbanization

Steel Use by Industry
Figure 5 shows the data of ASU according to industry sector
by Worldsteel. The findings show that both the constructionindustry and automotive industry have the highest ASU whichcoincides with the importance of these two industry sectors inurbanization growth.

5Oil & Gas, 2%
Others, 3%
Packaging, 2%••

Machinery &Industry, 3%
E&E, 4%
Ship building& repair,1%•

Automotive
18%

Construction,
66%

•
•

HS7210 are galvanized flat products used in the
fabrication, construction and building industry;
HS 7305 and HS 7306 are longitudinal/spiral weldedpipes and tubes used in the construction, water and oil& gas pipelines;
HS7225 are flat products with specific elements added
to provide certain electrical properties and used in the
manufacturing of electrical & electronic components
and other very specific engineering usages;
HS7219 are stainless steel flat products used in theconstruction industry to making structural support
components for a building; andHS7304 are seamless pipes and tubes which are mainly
used in the oil and gas industry.

Source: Worldsteel

Figure 5: ASU according to Industry Sectors in ASEAN

The construction industry still ranks as the top consumer ofiron and steel products. The Malaysian construction industry
consumes 66% of steel in the entire Malaysian market.
According to the Malaysian Iron and Steel Industry Federation(MISIF), local finished steel production accounts for 7.5 million
MT while imports of finished products recorded 7.7 million MT.
Our local manufacturers are focused on making steel products
for the construction industry because of the huge consumptionof steel in that sector.
However, the automotive industry in Malaysia is also expanding.
According to the statistics by MAA, local production of vehicles
in all categories (passenger cars; commercial vehicles & 4X4
vehicles) produced and assembled in Malaysia are on the rise.
Figure 6 shows this.

Source: Malaysia Automotive Association

Figure 6: Malaysia Automotive Sector on the boom

The imports of HS7208 has been on the rise year on year whichcoincides with its usage demand from the automotive industry(Figure 6). HS 7208 is also used for structural and construction
purposes.
Observation

Total vehicle production in Malaysia rose 3% from 2014 to 2015.
Steel products with the custom code HS7208 and HS7209 areused primarily in the automotive industry for vehicle production
and the oil and gas industry. Both these HS codes are also
used in the automotive industry for light weight applications.
Based on Figure 5, the consumption trend from the automotive
industry is five times that of the oil and gas industry. Therefore,
the major consumer for HS7208 and HS7209 would be theautomotive industry.
Import Trend of Iron & Steel Products - Malaysia
Figure 7 shows the import statistics for the Top 10 imported
Steel Products into Malaysia.
•
HS7208/HS7209 refers to flat products used for the
production of vehicles for the automotive industry
as well as the pipe manufacturing for the oil and gas
industry as mentioned earlier;•
HS7209 and HS7210 are flat products used primarily in
manufacturing of electrical appliances and furniture. It isalso used in the automotive industry in the fabrication ofcomponents in light passenger vehicles;•
HS7213 and HS7214 are bars and wire rods usedprimarily in concrete columns for the constructionindustry;

6

In summary, the next emerging market for steel use, after
the construction sector, in Malaysia and the rest of ASEAN
is potentially the automotive sector. This fact is supportedby the statistics from Worldsteel (Figure 5). The automotive
industry in Malaysia is also experiencing a growing trend withvehicle assembly and production on the rise. This translates
to demand for steel products within the custom classification
code of HS7208 and HS7209 which is primarily used in the
production of vehicles.
What is it to the Iron & Steel Industry in Malaysia?
Despite the gloomy global outlook for steel, due to overcapacity,
over production and a steep drop in steel prices, ASEAN as aregion and specifically Malaysia, appears to provide a positive
spark to this negative scenario. Though continued imports
into this region can be expected, this is a good opportunity for
local producers to take steps to be more resilient in meeting
competition and for the mid to long term period, to diversify
their product ranges and move into new emerging markets in
Malaysia and ASEAN.
Acknowledgement
We would like to thank WorldSteel (https://www.worldsteel.
org/) for their courtesy in providing the graphs and data
featured in Figures 1 to 5.

MSI: INDUSTRY LEAD BODY FOR IRON & STEEL EFFORTS
MSI Appointed as ILB
Malaysia Steel Institute (MSI) was appointed to be the Industry
Lead Body (ILB) for the iron and steel industry in 2015 by
the Ministry of Human Resources (MOHR). An appointed ILB
is tasked with driving a particular industry, by performing
the functions according to the guidelines set by the Skills
Development Department (SDD) / JPK (Jabatan Pembangunan
Kemahiran).
Some of the roles and functions of an ILB include:•
Implementing job analysis by specific industry sectors;•
Developing a National Occupational Skills Standards(NOSS) and reviewing the existing NOSS for sector-related industries;•
Obtaining the approval of the National Skills Development
Council (NSDC) for NOSS;•
Developing the curriculum for the National Dual Training
System (NDTS);•
Promotingand encouraging the company’s
participation in the NDTS program and Recognition ofPrior Achievement / Pengiktirafan Pencapaian Terdahulu(PPT); and•Undertaking a study to identify the supply vs. demandand emerging technologies, in an effort to enrich job
creation and enhance job opportunities.

METAL FABRICATION & FOUNDRY
Metal Treatment
IndustryFoundry

Not Available

MC-070-5:2013
Foundry Operation Management(25-04-2006)(24-04-2013)
MC-070-4:2013
Foundry Operation Administration(25-04-2006)(24-04-2013)

L3

MC-071-3:2014
Industrial Heat
treatment Operation(19-4-2011)(25-09-2014)

MC-070-3:2013
Foundry Production Supervision(30-09-2000)(25-10-10)(30-12-2013)

L2

No Level

L5
L4

L1
L5

L4

MSI’s progress as an ILB
In 2015, MSI completed the Occupational Analysis (OA) reportwhich is the process of identifying the work scope of theoccupational sub-area in terms of competencies. It is used toanalyse skilled human resource competency requirements forthe industry. In 2016, MSI will be taking on the developmentof a National Occupational Skills Standards (NOSS) and run
promotional activities for the Recognition of Prior Achievement,
better known as PPT.
What next?
MSI will soon be embarking on the development of NOSS a specification of competencies expected of a skilled worker
for an occupational area, level and the pathway to achieve thecompetencies in the forming sub-sector.
NOSS will also include in its standards, a career structure ina particular field of work, based on the job requirement. This
will be prepared by industry experts and skilled workers who
possess the experience in the particular field. This career
structure will be helpful to students embarking on skills training
as well as to employees, who will now be aware and be able toaspire to meet these skills standards.
NOSS Development
These skills standards are seen to be beneficial to all the
stakeholders - both the employer and employee. Employers
may measure the skills levels and employee performance,
guided by the standards. It is also a guideline in listing thespecific duties and scope of work, which will then save cost
and time in retraining workers, thereby improving quality,
productivity and competitiveness.
On the other hand, employees may refer to the standards for aclear scope of duties, work performance benchmark and also
use it as a guide in making the right decision for appropriate
training for career advancement. The standard will also allow
flexible employee training based on competency needs andhelp to schedule specific skills training programmes. As for the
training institutions, NOSS will allow for a better understandingof the skills needed by the industry hence ensuring thedevelopment of an appropriate training curriculum that meetsthe needs. Based on the current NOSS registry (as at March
2015), the following have been developed for the Iron and Steel
Industry:L3

MC-070-2:2013
Foundry Production(30-09-2000)(25-10-10)(30-12-2013)
No Level

Steel Making
MC-076-5:2013
Steel Making Operation
Management(25-04-2006)(24-04-2013)
MC-076-4:2013
Steel Making Operation
Management(25-04-2006)(24-04-2013)
MC-076-3:2013
Steel Making Operation(16-08-01)(24-04-2013)

L2
L1

Metal Forging
Not Available

MC-072-3:2012
Metal Forging Production(17-07-2012)

No Level

PPT PROMOTION
Aside from developing NOSS, MSI will also be involvedin conducting promotional activities to promote the PPT(Pengiktirafan Pencapaian Terdahulu) program by JPK. PPT
gives recognition to any individual who can demonstrate theskills outlined in the National Occupational Skills Standards(NOSS) based on prior job experience and achievements.
This method emphasizes the concept of lifelong learning tohelp individuals to evaluate and develop learning they haveacquired formally or informally. All employees of the service andmanufacturing sector who have acquired working experience inthe related field, as well subject to other conditions prescribed,
can obtain recognization through certification. Employees withthis recognition will possess the opportunity to gain further
recognition and motivation for self-development as it values
the expertise level achieved by particular individuals. This willthus contribute to the personnel career development as future
employers will have a clear view of the achievements throughthis recognition. Having a recognized skilled worker will surely
improve the company’s image as a professional organisation
with better productivity and performance.
The main objective of this recognition is to increase the numberof qualified skilled workers in the industry which will then be an
attraction for foreign investors.
MSI’s outlook for 2016
In 2016, MSI is highly motivated to carry out these activities
that reflects our vision of reshaping and facilitating theenvironment for a sustainable iron and steel industry – throughskilled manpower in the industry. Of course all these will only bepossible with cooperation and support of all stakeholders. MSI
cannot do this all alone. Hence, we look forward to taking thelead and working with all parties to fulfil the mandate entrusted
to us, as the ILB for the iron and steel industry.

7

EVENT: MSI ENGAGES WITH THE IRON & STEEL INDUSTRY ON
THE TRANS-PACIFIC PARTNERSHIP AGREEMENT (TPPA) AND
IN EXPLORING EXPORT PROMOTIONS
On 25 February 2016, the Malaysia Steel Institute (MSI), in collaboration with MITI and MATRADE,
organized a briefing session for the iron and steel industry which was held in Menara MATRADE.
This briefing session covered the issues of the Trans-Pacific Partnership Agreement (TPPA) and Exploring
Export Opportunities Overseas for the iron and steel industry players. A total of 100 participants fromvarious iron and steel companies and associations as well as MITI and MATRADE attended this half-day
event.
The briefing session was officiated by YB Minister of International Trade and Industry II, Dato’ Sri Ong Ka
Chuan. In his opening address, he reiterated that the iron and steel industry is presently facing challenging
times due to global economic headwinds, currency fluctuations, China’s slowdown, and rising geopoliticaltensions.
However, the Minister also pointed out that there were many other opportunities out there that were
presenting themselves; among others, in the form of TPPA as well as in the form of the ASEAN Economic
Community for the iron and steel industry players to tap into and benefit from.
For this, the iron and steel industry players need to not only think of the
Malaysian market but also explore the possibilities of exporting abroad.
The Malaysian External Trade Development Corporation (MATRADE) is thepremier agency in Malaysia to help provide assistance and guidance toexport our products. The Iron and Steel players should take advantage of
MATRADE’s services to point the way as well as provide relevant assistancewhen needed.
This Briefing Session comprising two sessions covered:1.

The Trans-Pacific Partnership Agreement (TPPA):“Trans Pacific Partnership Agreement (TPPA): Opportunities
and Challenges” – by Mr. Syahril Syazli Ghazali of MITI; and2.

Exploring Export Opportunities Overseas: “Market Opportunities for
Building Material Sector (Iron & Steel)” – by Ms. Yuslinawati Mohd Yusof of MATRADE.

This briefing session was quite interactive, where the participants raised a number of questions concerning the TPPA, both specificto iron & steel and other broad areas such as patents, labour and environment; and how they could register to benefit from theadvisory services on export, provided by MATRADE.
Based on the evaluation form submitted by 40 participants, 90.0% were interested in a follow-up for more detailed discussions on
TPPA; while 92.5% found the briefing session on export promotion useful for their companies.
MSI is very encouraged by the turnout and enthusiasm shown by those who attended the briefing sessions. We hope to continue
this engagement with the industry and in return hope the industry to support MSI’s activities.

EVENTS AND ACTIVITIES
1.

FMM Seminar on Latest Duty Exemption, Drawback &Refund Application & Procedures

Date: 17 May 2016
Venue: Kuala Lumpur - Dewan FMM
Contact: Ms Sandy, (T): 03-62867338 (F): 03-62741266(E): sandy@fmm.org.my
Ms Danielle Chin, (T): 03-62867307 (F): 03-62745239(E): danielle@fmm.org.my3.

Iranian Steel Tube & Pipe Conference

Date: 24-25 May 2016
Venue: Parsian Azadi Hotel, Tehran, IranContact: (T): +44(0)2077797222(E): marketing@metalbulletin.com
5.

2.

2016 SEAISI Conference & Exhibition

Date: 30 May - 2 June 2016
Venue: JW Marriott Ha Noi, Viet Nam
Contact: Ms. Josephine Fong
(T): +603 55191102(F): +603 55191159(E): ylfong@seaisi.org
4.

Iron Ore and Steel Trading and Risk Management Training
Course: Asia 2016

Date: 31 May 2016
Venue: Singapore
Contact: (T): +44(0)2077797222(E): marketing@metalbulletin.com

AISTech - The Iron & Steel Technology Conference
and Exposition

Date: 16-19 May 2016
Venue: David L. Lawrence Convention Center, Pittsburgh, PA, USA
Contact: Doreen Cary
(T): +1.724.814.3018(E): dcary@aist.org

8

T: 03-6208 4652

We welcome comments and feedback:
F: 03-6211 2445
E: admin@malaysiasteelinstitute.com