Industry News

1、 Market demand driving factors
The construction industry continues to expand
The urbanization process in Malaysia is accelerating, and the real estate transaction volume has significantly increased: in the first quarter of 2024, the real estate transaction volume surged by 17% year-on-year, driving the demand for building materials.
The government's large-scale infrastructure projects (such as the "Greater Kuala Lumpur Plan") and industrial zone construction have driven the application of light steel keel in commercial buildings, factories, and public facilities.
Climate adaptability advantage
Light steel keel has high wind and earthquake resistance performance, which is in line with the climate characteristics of frequent typhoons, high temperature and rainy weather in Malaysia, and has become the preferred material for high-rise buildings and residential buildings.
Promotion of environmental policies
The government has implemented a green building certification system, and light steel keel has been included in the policy support scope due to its low-carbon and recyclable characteristics, helping to achieve carbon neutrality goals.

2、 Current situation of supply chain and production capacity
Enhancement of local supply capacity
In 2024, Malaysia's Donggang Group will put into operation its first hot rolling production line (with an annual capacity of 3.5 million tons), filling the gap in local hot rolling products and reducing import dependence.
The overall capacity utilization rate of the steel industry is only 47%, which poses a risk of overcapacity, but high value-added products such as light steel joists benefit from technological upgrades.
Gradually easing import dependence
Traditional building materials (such as steel and cement) have long relied on imports, but localized production is accelerating (such as the investment and construction of factories by Chinese enterprise Jianlong Group).
The import of light steel keel mainly comes from China (cost-effective advantage) and Japan and South Korea (high-end products), and the market share of Chinese brands continues to increase.

3、 Competitive landscape and challenges
Diversification of market participants
Local small and medium-sized steel mills dominate the mid to low end market, while international enterprises seize the high-end market share through technological innovation.
The competition in the building materials market is fierce, and enterprises need to strengthen product quality and brand building (such as through CIDB/SIRIM certification).
Core Challenge
Cost pressure: The shortage of industrial land has pushed up factory rent (reaching 1.7-2.0 Malaysian Ringgit per square foot in the Xuelong area), coupled with the risk of fluctuations in imported raw material prices.
Industry standards: Must comply with Malay Standard (MS) or international standards (such as EN 14195), and exported products must pass CE certification or CIDB mandatory certification.

4、 Future Trends and Opportunities
Policy dividend release
The "2030 New Industrial Blueprint" (NIMP2030) promotes the upgrading of the manufacturing industry, and light steel keel, as an environmentally friendly building material, has received tax incentives and financing support.
Expansion of new application scenarios
The growth of the metal furniture market (with a 17% surge in demand by 2024) has driven the application of light steel joists in indoor partitions and customized homes.
The rise of intelligent buildings and the adaptation of light steel keel to modular and prefabricated building technology have improved construction efficiency.
Opportunities for Chinese enterprises to go global
As a key node of the "the Belt and Road", Malaysia can rely on localized production (such as joint ventures) to reduce tariff costs and radiate to the Southeast Asian market.