Review import duties and Approved Permit (AP) for steel

It is important that the Government consider seriously to do away with 50% import duty and AP for steel sheets, plates and coils, including steel materials not produced in this country.

This is a comment by Dr Tan Seng Giaw, and MP for Kepong on steel AP that has been overwhelmed in the media by AP for cars issue.

While we are waiting for the Minister for International Trade and Industry Datuk Paduka Rafidah Aziz to explain further unanswered questions on car AP, we would like her to tell us the rationale for steel AP. Is there gross injustice?

Since April, 1999, the Government has imposed 50% import duty on steel coils, sheets and plates with thickness below 30 mm. Then, companies such as Megasteel Sdn Bhd, Lion Plates and Ji Kang, Pahang, have been given AP to import these materials.

The measures result in more expensive steel materials for importers. Hence, companies using above-stated steel materials may not be competitive. We would like to know how many local and foreign companies have left Malaysia because of these measures since 1999.

China has become a major producer and user of steel. Steel price shoots up. Malaysia must look again at the steel situation and come up with a fairer policy on streel import.