Misif said this was crucial as the tariffs announced by US president Donald Trump could lead to a surge of foreign steel products being imported into the Malaysian market.
The association said firms in China had channelled steel products to Canada, Mexico, Brazil, and Vietnam in the past to get around US tariffs, prompting these nations to implement their own tariffs to halt the influx of goods.
“With these new tariffs (from the US) and the expansion to downstream goods, this new environment does not make those nations viable export destinations.
“Countries like China, which previously circumvented tariffs, Korea, Japan and Vietnam – which previously obtained exceptions with yearly quotas – will likely be diverting their exports to Malaysia.
“Without fair trade practices, Malaysian steel producers risk being displaced by unfairly priced imports, leading to plant closures, job losses, and a weakened industrial base,” it said in a statement.
Trump signed executive orders yesterday for the 25% tariffs on steel and aluminium imports to commence on March 12. This was strongly criticised by Canada, Mexico, and the European Union, which described the move as unjustified.
In January, Putrajaya imposed preliminary anti-dumping duties on tinplate imports from China, India, Japan, and South Korea. This followed an investigation which found proof of the steel products being dumped in Malaysia, according to The Edge.
Misif said the government must immediately act to safeguard the Malaysian steel and iron industry, which it added was a strategic sector for the nation’s economic growth.
It warned that failure to take swift mitigative action would cause Malaysian steel manufacturers to suffer “lasting and irreversible damage”.
The association also noted that other Asean member states were already taking preventive measures.
“Vietnam and Indonesia have imposed anti-dumping tariffs on Chinese goods, and Thailand recently announced measures to monitor cheap imports.
“Access into Indonesia, Thailand, and Vietnam has been significantly tightened recently with their respective governments paying detailed attention to excess steel being dumped into their respective countries’ domestic steel industry,” it said.