In its statement, MISIF emphasized that imposing SST on essential inputs such as steel scrap, coking coal and coke would increase production costs, which would in turn weaken the competitiveness of domestically produced steel. The federation stated that the proposed measure would have serious and far reaching consequences across the entire value chain.
The statement also noted that under existing Free Trade Agreements, many processed steel products continue to enter the Malaysian market duty free, while domestic producers would face higher costs due to SST on raw materials. MISIF underlined that this situation would distort competitive conditions within the sector.
According to MISIF, cost imbalances could negatively affect employment, discourage investment in value added manufacturing and increase dependence on imported finished steel. The federation stressed that this outcome conflicts with national objectives aimed at strengthening domestic supply chains and reducing reliance on imports.
MISIF also opposed proposals to exempt steel scrap from tax while imposing a 10 percent sales tax on iron ore, coking coal and coke. The federation stated that it doesnt support or approve such an approach, adding that this type of regulation would not address structural issues but would instead shift cost pressures to other areas within the industry.
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