KUALA LUMPUR, Oct. 29 (Xinhua) -- Malaysia's iron and steel industry can seize opportunities to shift to higher-value production by supplying the automotive, data center, and aerospace sectors, Investment, Trade and Industry Deputy Minister Sim Tze Tzin said on Thursday.
The steel industry is transforming beyond its traditional focus on construction and infrastructure, with high-technology sectors opening up new markets for domestic producers, Sim told a press briefing on the sidelines of the 15th Malaysian Iron and Steel Industry Federation (MISIF) Conference on the Status and Outlook of the Industry.
He said Malaysia's position as a major data center hub in Asia offered opportunities for the industry to supply products such as server racks, cables and wire harnesses and noted that at least one steel maker had informed him that it is diversifying into supplying server racks for data centers.
In aerospace, he said Malaysia's maintenance, repair and overhaul industry needs components that could let steelmakers pursue higher-margin business, even at lower volumes, adding that the government has allocated incentives for industry players moving into the production of more complex products.
Sim also said that as the country's automotive sector expands and increased localization is implemented, there is a greater demand for locally produced automotive-grade steel. ■