November 2021

NOTICEBOARD

THE STEELBILLETREBARSTEEL WIRE ROD

RM 2,856

RM 3,220

RM 3,295

SCRAP

IRON ORE

RM 2,029

RM 436

TRADE PERFORMANCE
Malaysia’s Trade Performance from January-November 2021
Malaysia’s Iron and Steel trade value in November 2021 was recorded at RM6.0 billion, which increased by
49.2 percent compared to RM4.0 billion in November 2020. Trade balance has improved from trade deficitof RM123.0 million in November 2020 to trade surplus of RM4.1 million in November 2021.
Malaysia’s export in November 2021 has expanded by 54.0 percent to RM3.0 billion from RM1.9 billion in
November 2020. Three main export destinations in November 2021 were to China, Korea and United States,
representing 38, 8 and 7 percent of the total export value in the month, respectively.
Malaysia’s import in November 2021 grew by 44.6 percent to RM3.0 billion from RM2.1 billion in November
2020. Top three Malaysia’s import countries in November 2021 were China, Japan and Taiwan. China andJapan represent 17 percent respectively while Taiwan represent 13 percent of the total import value in themonth.
From January to November 2021, the trade value of the Iron and Steel products stood at RM56.0 billion in
2021 compared to RM44.0 billion in the same period of 2020, rose by 27.4 percent. Trade balance has
widened from trade deficit of RM1.0 billion in January to November 2020 to trade deficit of RM3.6 billion
during the same period of 2021.

Malaysia Trade Performance of Iron & Steel Industry
Nov 2021: RM6.0billion

Month Trade Value
49.2 % M-o-M change

Nov 2020: RM4.0billion

Nov 2021: RM4.1million
Trade Surplus

Month Balance ofTrade103.4 % M-o-M change

Nov 2020: RM123.0million
Trade Deficit
Month Export
Nov 2021: RM3.0billion
54.0 % M-o-M change

Nov 2020: RM1.9billion

Month Import
Nov 2021: RM3.0billion

44.6 % M-o-M change

Nov 2020: RM2.1billion

YTD Trade Value
Jan-Nov 2021: RM56.0billion
27.4 % Y-o-Y change

Jan-Nov 2020: RM44.0billion

Jan-Nov 2021: (RM3.6billion)
Trade Deficit
Jan-Nov 2021: (RM1.0billion)
Trade Deficit

YTD Balance of Trade249.7 % Y-o-Y change[AUTHOR NAME]

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MSI WITH YOU
INDUSTRY EXCELLENCE AWARDS CEREMONY ORGANIZED BY THE MINISTRY OF
INTERNATIONAL TRADE AND INDUSTRY
On 2 November 2021, CEO of MSI, Mr. Lim Keng Yow attended the Industry Excellence Awards Ceremony
and gala dinner organized by MITI. Also in attendance of the event was the Prime Minister of Malaysia, YAB
Dato’ Sri Ismail Bin Sabri, Senior Minister of the Ministry of International Trade and Industry, YB Dato’ Sri
Azmin bin Ali, Deputy Minister of MITI, YB Datuk Lim Ban Hong. The event was meant to honor companies
who did extremely well amongst the industry. The highlight of the ceremony was the Prime Minister’s Award
which was awarded to Johor Port Berhad. The award came with a prize of RM500,000 amongst many otherprizes.

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VISIT TO WEI DAT STEEL WIRE SDN BHD
On 15 November 2021, CEO of MSI, Mr. Lim Keng Yow paid a visit to Wei Dat Steel Wire Sdn Bhd located in
Menglembu, Perak to present a commemorative plaque for joining MSI as an ordinary member on the 23 rd
November 2020. Representative of Wei Dat also presented MSI with a plaque as a token of appreciation.

VISIT TO SOON HIN HARDWARE
On 16 November 2021, CEO of MSI, Mr. Lim Keng Yow paid a visit to Soon Hin Hardware in Ipoh to discusson the potential collaboration on the PENJANA programme to upskill and reskill employees in the Iron andSteel Industry.

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4COURTESY VISIT FROM BIMAGE CONSULTING AND AUTODESK MALAYSIA
On 18 November 2021, Bimage Consulting Malaysia and Autodesk Malaysia through its representatives paida courtesy visit to MSI office. The visit included discussions on future collaborative projects between the 3organizations as well as a gift of a token of appreciation for organizing the recent webinar titled ‘Industrial
Revolution (IR) 4.0 Steel and BIM adoption in Construction Industry.’

FAREWELL TO PROF DR NOORSAADAH, BOARD OF DIRECTOR FOR MSI
On 19 November 2021, CEO of MSI, Mr. Lim Keng Yow paid a visit to Prof. Dr. Noorsaadah who has been aboard member at MSI since September 2016 at University of Malaya. Prof. Dr. Noorsaadah was given aplaque and a card as a gift of appreciation for her years of service with MSI.

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CSR VISIT TO MALAYSIAN ASSOCIATION FOR THE WELFARE OF MENTALLY CHALLENGED
CHILDREN, IQ 70 PLUS
On 25 November 2021, MSI visited the Persatuan Kebajikan Kanak-Kanak Terencat Akal Malaysia (IQ 70
Plus) along with Amsteel, Ann Joo Berhad and Wei Dat as part of the CSR activities for 2021. The centre wasestablished in March of 2012 and currently houses around 70 residents. MSI and the steel associations
donated a total amount of RM7,850 to the centre which ended in a mock cheque presentation.

VISIT TO ALLIANCE STEEL (M) SDN BHD
On 29 November 2021, CEO of MSI, Mr. Lim Keng Yow made a visit to Alliance Steel (M) Sdn Bhd located in
Kuantan, Pahang to present a certificate for participating in the PENJANA programme – upskilling andreskilling workers in the iron and steel industry.

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ENGAGEMENT SESSION WITH CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB)On 29 November 2021, MSI participated in an engagement session with Construction Industry Development
Board (CIDB) to share the reasons for the ecosystem-the excess capacity of long products in Malaysia. CIDB
had earlier raised the issue on the decline of Certificate of Approval (COA) during the recent TC-MSC
meeting held in August 2021.

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NETWORKING EVENT BY SENIOR MINISTER FOR THE MINISTRY OF INTERNATIONAL
TRADE AND INDUSTRY FOR DEEPAVALI
On 25 November 2021, MSI was invited along with other agencies to participate in a networking event inconjunction with the Deepavali celebration hosted by the Ministry of International Trade and Industry
Senior Minister, Dato’ Sri Azmin bin Ali at Dewan Perdana, MITI Tower. The event provided food andperformances in line with Deepavali and was attended by the Senior Minister and his deputy, Datuk Lim
Ban Hong, among other agency heads.

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MSI BRIDGING GAPSNEW INDUSTRIAL MASTERPLAN, DFR2 SYNDICATION WORKSHOPOn 11 November 2021, MSI represented by Mr. Leon was invited to take part in the New Industrial
Masterplan, DFR2 syndication workshop. The workshop was also attended by the Deputy Secretary
General (Industry) of the Ministry of International Trade and Industry, Dato’ Sri Norazman bin Ayob.

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9NATIONAL CONFERENCE ON GOOD REGULATORY PRACTICE BY MALAYSIA PRODUCTIVITYCORPORATION (MPC)
On 25 November 2021, The Malaysia Productivity
Corporation, an agency under the Ministry ofInternational Trade and Industry (MITI) had
organized the Good Regulatory Practice
convention with the theme being increased
productivity through quality regulation. MSI was
invited and joined along with members of the
public for the event which was livestreamed on
the Facebook page of the Malaysian Productivity
Corporation.
The conference was officiated by the Minister of International Trade and Industry, Dato’ Seri Azmin bin Ali
which was followed by the launch by the Prime Minister, Dato’ Sri Ismail bin Sabri. The regulatory
champions award 2021 was also announced during the conference in which there were 7 categories.
Ministries, Agencies, States and local council active in executing GRP, unified public consultation, active
regulatory coordinator and finally the good regulatory practice figure. The main talks of the conference
were given by Dato’ Paduka Ammar Bin Dato’ Shaikh Mahmood Naim, the State Secretary of Kedah whogave a talk titled “transforming
productive minds through good regulatory practice.” The next talk was given by Datuk Amar Jaul Samion,
the State Secretary of Sarawak titled “Effective government service delivery through good regulatory
practice.” A panel forum followed with the topic being “Agile regulations and integrity in facing Covid-19.”
The panel consists of Datuk Razim bin Mohd Noor, the director of the Malaysian Anti-Corruption
Commission, Dato’ Dr. Ir. Andy Seo Kian Haw, Co-Chair of PEMUDAH, Dr. Hj. Nadzman Mustaffa, Yang
Dipertua for the city council of Kulim, Mr. Zahid Ismail, deputy director for Malaysian Productivity
Corporation and moderated by Mr. Sayed Munawar Sayed Mustar. Mr. Ram Ganesan Karthigasu, Chairmanof Malaysia Productivity Corporation closed of the conference with a speech[AUTHOR NAME]

10STEEL FACTS[AUTHOR NAME]

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EVENTS HIGHLIGHT[AUTHOR NAME]

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STEEL NEWS1. Miti: Revised guidelines on metal scrap importation implementation extended to December 31 - 1
November 2021 - malaymail
KUALA LUMPUR, Nov 1 – The Ministry of International Trade and Industry (MITI) has extended theinterim measure period for the implementation of the revised guidelines for the importation andinspection of ferrous, copper and aluminium scraps to December 31, 2021.
In a statement today, MITI said the extended interim period would allow the industry to undertakethe necessary preperations towards the certificate of approval (CoA) implementation.
“MITI commends the commitment by all major manufacturers and importers in complying with the
new criteria during the interim period.
“MITI would like to call upon the industry to continue to support the overarching objective of theguidelines in line with our international commitment prescribed through the United Nations
Sustainable Development Goals, Goal 12: Ensure Sustainable Consumption and Production Patterns
as well as in upholding the Environment, Social and Governance principles,” it said.
In August 2021, MITI announced an extended period of the interim measure regarding theimplementation of the guidelines for the importation and inspection of ferrous, copper andaluminium scraps.
During the extended interim period from September 1 until October 31, 2021, the existing importmechanism by the Department of Environment (DoE) will be enforced by using the criteria set andwith the introduction of Materials Recovery Facilities’ Approval Scheme by SIRIM and foreign
inspection bodies as additional improvements. – Bernama
2. Iron ore tumbles as China’s curbs on steel output roil market – 2 November 2021 - The Star
(Bloomberg) -- Iron ore futures extended losses below US$100 a ton on shrinking steel output in China
and signs economic growth is facing mounting headwinds.
Prices in Singapore slumped for a fifth day as the world’s top steelmaker ramped up efforts to cap
annual steel volumes. While China has imposed curbs on production throughout 2021, restrictions
are now being rolled out more frequently and limits have been extended into the first quarter in aneffort to ensure blue skies for the Winter Olympics.
Daily crude steel output in the final third of October dropped to the lowest since March 2020,
according to researcher Mysteel, which cited a survey of 247 blast furnaces and 71 electric-arc
furnaces. There were frequent requests from local governments to curb production, while lackluster
steel demand and softening prices have dampened mills’ willingness to produce, it said.

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China’s top industry group has previously said steel volumes fell in early and mid-October, while
official data showed output plunged to the lowest since 2017 in September.
"The probability that iron ore demand slides by at least 20% in the fourth quarter is increasing, judging
from lower downstream demand,” said Orient Futures Co. analyst Xu Huimin. "We have to monitor if
mills will actually reduce production on their own, which will worsen the market a step further.”
The iron ore market in October was already at a 15% surplus, and cost support is currently at about
US$80 to US$90 a ton, she said.
3. Hiap Teck Venture in expansion mode – 13 November 2021 - The Edge Markets
KUALA LUMPUR (Nov 13): After a 10-year wait, Main Market-listed Hiap Teck Venture Bhd, controlled
by tycoon Tan Sri David Law Tien Seng, is finally reaping the fruits of its investment in Eastern SteelSdn Bhd (ESSB), which operates a fully-integrated blast furnace steel plant in Kemaman, Terengganu.
The construction of ESSB’s Kemaman plant started in 2011 before its dry run in 2014, followed by thecommencement of production in January 2015.
Unfortunately, in October 2015, ESSB’s operations were suspended to minimise losses due to difficult
market conditions at the time, caused by the influx of cheap imports from China that started in 2013.
The breakthrough came in 2018, when Hiap Teck successfully roped in Shanxi Jianlong Industry Co Ltd
as a new strategic partner of ESSB.
Shanxi Jianlong, whose parent Beijing Jianlong Heavy Industry Group Co Ltd is a Fortune Global 500
company and one of the top five steel makers in China, acquired a controlling stake of 60% in ESSB
and resumed steel production within a short period of half a year.
Notably, Hiap Teck last Monday announced that Shanxi Jianlong had injected cash of 500 million yuan(about RM325.6 million) into ESSB, and therefore raised its stake in the company to 68.8%.
Consequently, Hiap Teck’s shareholding in ESSB was diluted from 35% to 27.3%, while Chinaco
Investment Pte Ltd’s stake was cut from 5% to 3.9%.
In an exclusive interview with The Edge, Hiap Teck executive director Law Wai Cheong, who is Tien
Seng’s son, said the capital injection by Shanxi Jianlong was very timely as ESSB had gained a strong
foothold in the local steel industry and was ready to embark on a RM3 billion expansion, involving aventure into the hot rolled coil (HRC) business.
Wai Cheong also spelled out Tien Seng’s ambitious plans in rebuilding his mining empire in Australia.
To recap, after selling his stake in Australian iron ore miner Midwest Corp Ltd to China’s Sinosteel
Corp at the peak of the commodity boom in 2008 — pocketing a whopping profit of A$200 million —Tien Seng returned to Australia by investing in Tungsten Mining NL (TGN) in 2014.

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Today, he controls at least three Australian-listed mining companies, namely iron ore miner GWRGroup Ltd, tungsten miner TGN and gold miner Western Gold Resources Ltd.
Meanwhile, it has not gone unnoticed that most steel stocks on Bursa Malaysia, which saw their prices
peak in May this year, have since retreated from their mid-year highs, some with more than half of
their gains erased.
The Edge compares the performance of Hiap Teck against some major steel players including Ann Joo
Resources Bhd, Southern Steel Bhd, CSC Steel Holdings Bhd and Leon Fuat Bhd.

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ABOUT MSI
Malaysia Steel Institute (MSI) is an industry driven enterprise supported and funded by the Ministry of International Trade &Industry (MITI) on shared responsibility basis with the industry. The main objectives of MSI are to promote and develop thecompetitiveness, resilience and sustainability of the Malaysian iron and steel industry; to provide advisory services and to carryout commission or promote the study of scientific, technology and economic aspects of iron and steel industry development in
Malaysia; and to promote iron and steel product standardisation and utilisation within Malaysia. For more information, please
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