April 2022

NOTICEBOARD

THE STEELBILLETREBARSTEEL WIRE ROD

RM3,250

RM3,525

RM3,550SCRAPIRON ORE

RM2,646

RM665

Trade Performance
Malaysia’s Trade Performance, January-April 2022
Malaysia’s Iron and Steel total trade value in April 2022 grew by 17.7 percent to RM6.4 billion compared to RM5.4
billion in April 2021 for the same period.
Malaysia’s iron & steel export in April 2022 increased by 38.0 percent to RM3.5 billion from RM2.5 billion in April
2021. Three main export destinations in April 2022 were China, the United States and Singapore, accounting for
10.0, 8.0 and 7.0 percent of the total export value respectively.
Malaysia’s iron & steel import in April 2022 showed relatively similar figure as in April 2021 at RM 2.9 million.
Imports from Japan, China and Indonesia accounted for the top three (3) spots representing 18.0, 16.0 and 11.0
percent of the total import value, respectively.
From January to April 2022, the total trade value of the Iron and Steel products stood at RM23.4 billion in 2022
compared to RM18.5 billion in the same period in 2021, an increase by 26.6 percent. Further, the trade balance
improved from a deficit of RM1.2 billion to a trade surplus of RM26.8 million during the same period of comparison.

Comparison of Malaysia’s Trade Performance - Iron & Steel Industry
April 2022: RM6.36billion

Trade Value
17.7 % M-o-M change

April 2021: RM5.40billion

April 2022: RM591.28million
Trade Surplus

Balance of Trade261.6 % M-o-M change

April 2021: (RM365.82million)
Trade Deficit

ExportApril 2022: RM3.47billion
38.0 % M-o-M change

April 2021: RM2.52billion

ImportApril 2022: RM2.88billion
0 % M-o-M change

April 2021: RM2.88billion

Jan-April 2022:
RM23.43billion

YoY Trade Value
26.6 % Y-o-Y change

Jan-April 2021:
RM18.50billion

Jan-April 2022: RM26.75million
Trade Surplus

YoY Balance of Trade102.2 % Y-o-Y change

Jan-April 2021: (RM1.22billion)
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MSI WITH YOU
JEMPUTAN IFTAR PERDANA BERSAMA AGENSI DAN INDUSTRIOn 20 April 2022, the Ministry of International Trade and Industry (MITI) organized the MITI Premier Iftar
Ceremony with Agencies and Industry for the year 2022. The ceremony was officiated by YB Dato 'Seri
Mohamed Azmin Ali, Senior Minister, Minister of International Trade and Industry.

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MSI BRIDGING GAPSWORKSHOP ON STRATEGIES, ACTION PLANS & RECOMMENDATIONS ORGANISED BY
MALAYSIA INDUSTRY-GOVERNMENT GROUP FOR HIGH TECHNOLOGY (MIGHT)
On 4 April 2022, MSI participated in the third and final workshop on Strategies, Action Plans &Recommendations organised by Malaysia Industry-Government Group for High Technology (MIGHT). The
objective of the workshop was to refine the proposed framework and develop the long-term strategic
direction of the Iron & Steel industry. Currently, MIGHT in collaboration with the Ministry of International
Trade and Industry (MITI) is conducting a Foresight study on the Iron and Steel Industry to understand
Malaysia’s iron and steel industry and develop long-term measures for the industry towards 2030.

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4TECHNICAL COMMITTEE 2/2022 MEETING FORESIGHT STUDY ON IRON AND STEELOn 21st April 2022, MSI participated in the Technical Committee 2/2022 meeting Foresight Study on Iron
and Steel. The meeting was led by MIGHT aimed to seek technical committee views and approval of the draft
report. The meeting also discussed industry related issues and sought consensus from the industry
stakeholders prior to finalization of policy direction.

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MSI TRU
MyProjek SYSTEM BILATERAL SESSION
On 7 April 2022, the Implementation Coordination
Unit (ICU), Prime Minister's Office held a bilateralsession to discuss in detail the use of MyProjek
System, Project Monitoring System II and otherissues related to project management in the
Ministry. Outcomes from this session, some
improvements will be made to the MyProjek system
to streamline the data entry process in the system.

BRIEFING TO PARTICIPANT RMK12 BATCH 3
MSI conducted a briefing session for the third batch
participants for RMK12 Iron and Steel Training
Programme 2022 (Extensive Training) on 6 April 2022.
The third batch for 15 days Extensive Training wasattended by 47 participants.

BRIEFING TO PARTICIPANT RMK12 BATCH 4
On 13 April 2022, MSI conducted a briefing session for the fourthbatch participants for RMK12 Iron and Steel Training Programme
2022 (Extensive Training) that saw a total of 60 participants taking
part. As to date, MSI has trained 172 participants under the
Extensive Training programme. MSI’s target is to train 385
participants by end of 2022.

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EVENTS HIGHLIGHT[AUTHOR NAME]

8STEEL NEWS1. Designing future autonomous vehicles for use in a ‘mobility as a service’ model
Source: https://steelemotive.world/designing-future-autonomous-vehicles-for-use-in-a-mobilityas-a-service-model/
Transport and the way people use it is changing. In the next 20-years, urban mobility is expected to
be transformed by the widespread roll-out of fully autonomous vehicles operating within a ridehailing, mobility as a service (MaaS) model. This will enable people living in and visiting cities to plan,book, and pay for multiple types of mobility services through a digital channel.
This new model could enhance our experience of taking a journey. We will be safer, more
comfortable and enjoy a higher level of convenience. Our concern about the cost of the daily
commute may also become outdated, as there are also great cost savings to be made both fortransport providers and users.
SEM Vehicle Technology
As part of this shift, fully autonomous vehicles operating under a MaaS model have the potential tosolve some of the biggest transport challenges that the world faces, namely, the environmental
impacts of road vehicles such as reducing road traffic congestion and accidents, greenhouse gases
and pollutants, and providing solutions for people who currently have limited access to transport.
These solutions will be realised when MaaS is integrated with existing modes of public transport liketrains and busses. If we all move towards private ride hailing services (one autonomous vehicle perperson, per journey) the problem will not be solved.
Advanced High-Strength Steels will enable future transportation challenges
The Steel E-Motive project is a collaboration between WorldAutoSteel and Ricardo, which
demonstrates the suitability of the latest Advanced High-Strength Steel grades for use in a fullyautonomous vehicle, engineered for a MaaS transport model. We are working together to develop
two vehicle concepts; the smaller four passenger “SEM1” variant is intended for inner-city journeys
and the larger six passenger variant (SEM2) intended for longer inter-city journeys.
Autonomous vehicles of the future will require many new innovations. This includes developmentin electrical and control systems in the form of radar and lidar sensors and changes in vehiclearchitecture or structure. Autonomous vehicles create opportunities and present different
requirements, and the structure of vehicles will need to adapt to that.
Two SEM vehicles driving side by side
The Steel E-Motive program is woking to develop two vehicle concepts for MaaS applications.
Addressing population growth and demand for transportation
Autonomous vehicles operating in a ride sharing MaaS model alongside other public transport will
help to meet the challenge of serving a growing global population, while providing a sustainabletransport solution around and between cities. With ride sharing, the number of single-passenger
vehicles on the road drops, reducing traffic congestion, leading to an increase in capacity forpassenger numbers and journeys.
This will be important as the global population is forecast to increase by 25% to 9.7 billion in 2050,
with a considerable proportion of this growth expected to be in urban and suburban regions.

Both the smaller SEM1 and larger SEM2 Steel E-Motive vehicles are engineered to be compliant with
global legislation, specifications, and requirements. This means that they can be used in any city
environment.
Addressing the environmental transport challenges in future towns and cities
As cities and suburban areas become more heavily populated, there will be a growing need to movepeople more efficiently and safely, while supplying sustainable solutions. Being able to hail a ride in
an electric autonomous vehicle and share that with others, will help to reduce traffic congestion andreduce carbon emissions and other pollutants.
The Steel E-Motive SEM1 and SEM2 vehicles are ‘all electric’ with zero tailpipe emissions that will
help cut urban pollution. The vehicle has been designed to be as environmentally friendly as possible
during its complete lifecycle. The aim is that the electricity source used for charging will be provided
from an energy mix that is largely renewable (e.g., wind, solar). This will reduce the greenhouse gas
emissions generated during the vehicle’s lifetime on the road.
The body structure designs of the Steel E-Motive vehicles also have been engineered to minimise
greenhouse gas emissions created during vehicle manufacture. Steel is made in a moreenvironmentally friendly way than many other materials, with fewer greenhouse gas emissions. The
Steel E-Motive vehicles incorporate some of the latest “reduced carbon” steel grades in their design
and through advanced fabrication processes, achieve more efficient steel use per part, meaning lessoverall steel production.
Addressing vehicle safety
The future of transport will be safer than it is now. Governments, city planners, vehicle
manufacturers and fleet operators already face a big challenge when it comes to reducing accidents
for passengers and pedestrians and improving vehicle safety.
Autonomous vehicles operating in a MaaS model can help reduce road traffic accidents and fatalities
because the vehicles have advanced sensor and control features that detect potential collisions andrapidly activate avoidance measures reducing accidents caused by human error. However, in theearly stages of roll out, these vehicles are expected to operate in a ‘mixed mode’, where autonomousvehicles will be operating alongside owner-driven vehicles. This means that there is still a risk of highspeed vehicle to vehicle or vehicle-to-obstacle collision. To address this, the Steel E-Motive vehicles
are engineered to meet high-speed international crash test standards. Leveraging the steel
industry’s Advanced High-Strength Steel portfolio, our vehicles are engineered to the demands of
MaaS, meet stringent vehicle safety targets, and deliver optimal mass, cost and comfort.
SEM vehicles stopped to let pedestrians cross
As with all forms of transport people will only want to use autonomous vehicles operating in a MaaS
model if the solution addresses their needs. The Steel E-motive vehicle designs ensure that the
product and service offering is attractive for people, spurring their interest to travel in this way.
These vehicles are designed to be mass produced at high volume and to be affordable. A steel bodystructure can be produced at a more competitive cost than alternative materials. Autonomousvehicles will also be cheaper to run due to higher operational efficiency in use and reduced labourcosts.
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10The Steel E-Motive vehicles have been engineered with future users’ needs in mind. The Advanced
High-Strength Steel body structure is designed to reduce noise and vibration, so that the journey ismore comfortable. The vehicles are perfect for ride hailing in an urban environment as they have aflat interior floor, an accessible ‘step-in height’ and a wide entry door aperture. Both vehicles featurefour-wheel steering, with a generous turning circle, enabling the vehicles to operate in confined
spaces. This makes it easier for people to hail and access the vehicles in restricted areas. Awarenessof safety and environmental challenges is on the rise and the design and features of the Steel EMotive vehicles will reassure future passengers that travelling in this way is contributing to the global
drive for safer and sustainable mobility.
2. Lion Industries to sell Eden Flame for RM135.88mil
Source: https://www.klsescreener.com/v2/news/view/938241
PETALING JAYA: Lion Industries Corp Bhd (LICB) has proposed to dispose of its entire 100% equity
stake in Eden Flame Sdn Bhd for RM135.88mil.
In a filing with Bursa Malaysia, LICB said its 99%-owned subsidiary, Amsteel Mills Sdn Bhd (AMSB),
had entered into a conditional sale and purchase agreement with Esteel Enterprise Pte Ltd for the
proposed disposal of Eden Flame for an adjusted consideration of RM135.88mil based on Eden
Flame’s proforma management accounts as at Nov 30, 2021.
Eden Flame owns the long steel plant located in Pasir Gudang, Johor that produces billets that arerolled into steel bars and light sections such as angle bars, flat bars and U-channels. The plant is not
in operation as at to-date.
The audited net loss and capital deficiency of Eden Flame for the financial period ended June 30,
2021 were RM36.46mil and RM36.46mil, respectively.
Upon completion of the proposed disposal, the LICB group is expected to realise a gain of
approximately RM56.54mil based on the proforma management accounts as at Nov 30, 2021.
LICB said the proposed disposal would enable the group to unlock the value of Eden Flame andrealise a gain of RM56.54mil that will enhance its financial position.

3. China tells steel industry to cut production, adding to industrial export restrictions
Date: 19 April 2022
Source: https://seekingalpha.com/news/3824375-china-tells-steel-industry-to-cut-productionadding-to-industrial-export-restrictions
China tells steel industry to cut production, adding to industrial export restrictions
Apr. 19, 2022 12:09 PM ETVLO, MPC, AA, NTR, MOS, VALE, X, NUEBy: Nathan Allen, SA News Editor98
China's National Development and Reform Commission "NDRC" released a statement detailing plansto reduce Chinese steel production in 2022. As the world's largest producer and exporter of steel,
and with steel prices at ~3x historic averages, the production cut could contribute to inflationpressures outside of China.
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According to a statement released Tuesday by China's Iron and Steel Association, the industry should"maintain a balance between supply and demand under the limited market demand." Further
adding, "under the dual constraints of resources and the environment, it is unwise to export lowend steel products on a large scale." China exported 67mt of steel in 2021; the Iron and Steel
Association indicated Tuesday that output will decrease by 30mt in 2022.
China has evolved from a net importer of steel as recently as 2009, to become the world's largest
producer. China accounts for over 50% of global production and exports of steel. Supply side reform
is nothing new in China; however, the pivot to reduced production for air pollution prevention andenergy consumption reduction could not come at a worse time for the global economy.
China is the world's largest producer of nitrogen and phosphate fertilizers. In late 2021, the NDRC
suspended exports of fertilizer, despite record global prices. China has become the world's second
largest refiner of oil, and in March 2022, the country halted oil product exports entirely. China
accounts for over 50% of global aluminum production, and in early 2022 the NDRC took steps to cap
output, despite record aluminum prices.
Each policy measure has come with carve outs, exceptions, and time frames; aluminum exports hit
a record in February, after months of suppression, for example. However, taken in aggregate, thetiming is puzzling. In 2021, China was happy to import crude oil, refine it, and export diesel at a $5$10 margin. In 2022, the country is restricting exports when seaborne diesel margins are ~$50 per
barrel.
With spiking prices and shortages popping up globally, investors are sure to remain focused on
Chinese industrial policy in coming months. Investors in oil refineries like Valero (VLO) and Marathon(MPC) could benefit from continued oil product export constraints. Aluminum producers like Alcoa(AA) are sure to benefit if continued energy conservation policies cap Chinese production. Fertilizer
producers like Nutrien (NTR) and Mosaic (MOS) could face a headwind if fertilizer exports tick up
following spring planting in China. And following Tuesday's announcement, iron ore producers like
Vale (VALE) could see headwinds from reduced Chinese consumption, while steel producers like US
Steel (X) and Nucor (NUE) could see tailwinds.
4. 709 former Perwaja Steel workers receive RM8.6mil in compensation
Date: 24 April 2022
Source: https://www.msn.com/en-my/news/national/709-former-perwaja-steel-workers-receiverm8-6mil-in-compensation/arAAWwORt?ocid=msedgdhp&pc=U531&cvid=7c01a711269c4a09b353ed0b1172a39a
PETALING JAYA: Prime Minister Ismail Sabri Yaakob announced today that all 709 former workers
from Perwaja Steel laid off in 2014 will receive RM8.8 million in compensation.
The announcement was made at an event in Chukai, Kemaman, Terengganu, where he gave out thecompensation to the affected workers.
“I am in Kemaman today to give out the compensation to 709 former workers of Perwaja Steel Sdn
Bhd, after they were laid off on November 2014,” Ismail said in a Twitter thread.
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“Their case, which has been tried in court for more than seven years, is finally over, withcompensation amounting to RM8.645 million.”
Each recipient will receive between RM3,000 and RM21,000, he added.
The case on the dismissal of the workers from the steel mill was brought to the Kuala Lumpur High
Court.
The company’s mill in Kemaman laid off its workers in November 2014 after it ceased operations.
The workers were told in July 2014 that the company was facing financial problems and it would
undergo a restructuring of its business operations.
Speaking at the same function, Ismail said he was confident the new leadership of the MalaysianTrades Union Congress (MTUC) would work with the government in improving the welfare ofworkers.
“Usually, in terms of perception, labour unions are considered as against employers. Whenmentioning unions, the people would usually assume unions would not agree with employers andunions would also usually not agree with the government.”
He said MTUC could play an important role in creating a good relationship between employers andemployees.
“I also hope the labour unions would work with the government to improve the welfare of workers.”
He said employers also need to ensure a harmonious environment at the workplace is achieved forthe benefit of workers.
MTUC secretary-general Kamarul Baharin Mansor said Perwaja had contributed a lot to Kemaman’s
development.
“But the way the former workers were retrenched was very sad. They were not paid their salaries
for up to six months and not allowed to enter the factory. Only a notice was posted on the entranceof the premises.”
5. Stabilising home prices
Date: 30 April 2022
Source: https://www.thestar.com.my/news/nation/2022/04/30/stabilising-home-prices
KUALA LUMPUR: A new framework to address concerns over the sharp increase in construction costs
contributed by the Russian-Ukraine conflict will be drawn up by the National Affordable Housing
Council.
Prime Minister Datuk Seri Ismail Sabri Yaakob said the government was determined to find a solution
to the issue that was affecting home prices.
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“The council will help resolve problems that have emerged as well as make the buying and owningof houses easier in the future,” he said in his speech at the groundbreaking ceremony for the PR1MAAstrum Ampang residency here yesterday.
Ismail Sabri said the government was aware of the people’s need to own a house.
“Under the 12th Malaysia Plan (RMK12) and the housing council, immediate and long-term
measures have been outlined to resolve this problem.
“This is in line with efforts to boost affordable homeownership for the B40 and M40 groups,” hesaid.
Ismail Sabri also spoke about youths working in the city who face issues with housing andaccessibility.
He said that houses in Malaysia were getting expensive due to the uncertain economic situation as
well as the pandemic, making it difficult for youths to own a home.
As such, he said the Housing and Local Government Ministry had planned a residential project called
the “Transit Oriented Development (TOD)”.
“The PR1MA-Astrum Ampang project is a TOD project at Jelatek, Kuala Lumpur, with access to LRT
Kelana Jaya line and MRT lines.
“TOD is convenient for youths who are going to work while enabling the country to reduce its carbon
footprint by 2030 in line with the Sustainable Goals Development.
“One of the four phases in this development will be devoted to the construction of PR1MA housingwith a gross development value (GDV) of RM180.80mil,” he said.
The project is a collaboration between Perbadanan PR1MA Malaysia and Astrum Ampang Sdn Bhd.
PR1MA is the investor and joint venture partner in this mixed development.
A total of 712 homes will be offered under the concept of “Small Office Home Office” (SOHO) andserviced apartments at 450sq ft and 550sq ft priced at RM250,000 and RM270,000.
It is located 4km from KLCC and within easy reach of other facilities such as schools, shopping malls,
hospitals and banks.
The development is also in line with RMK12 aimed at “One Family, One Home”.
For more information, log on to www.pr1ma.my or call PR1MA call centre at 03-7628 9898 or email
info@pr1ma.my.

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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 promoteand develop the competitiveness, resilience and sustainability of the Malaysian Iron and steel industry; to provide
advisory services and to carry out commission or promote the study of scientific, technology and economic aspectsof iron and steel industry development in Malaysia; and to promote iron and steel product standardization andutilization within Malaysia. For more information, please visit malaysiasteelinstitute.com and follow us on Facebook,
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