The Malaysian Iron and Steel Industry Federation (MISIF) has reiterated its concern that the imposition of the Sales and Service Tax (SST) on primary steelmaking raw materials, including scrap, is undermining the competitiveness of the domestic steel industry. 

Since July 1, 2025, a wide range of steel-related products have been subject to SST at rates of 5% to 10%, with no exemptions granted under the latest revision announced in January.

MISIF also rejected a proposal raised by lawmakers to impose a 10% SST on iron ore, coking coal, and coke in exchange for exempting scrap from the tax. Currently, iron ore, scrap, coking coal, and coke are all subject to a 5% SST. 

The federation argued that such measures merely shift cost pressures along the value chain and fail to address the fundamental structural challenges facing Malaysia’s steel industry.