MISIF continues to monitor developments that may affect the integrity and reputation of Malaysia’s steel industry. Recently, a troubling case has come to our attention involving the misuse of Malaysian corporate identities in the export of steel plate to the United States. This issue surfaced after a detailed report by Steel Market Update highlighted a shipment exceeding 5,000MT of hot rolled steel plate that arrived at the Port of Houston claiming Malaysian origin. The material was accompanied by mill test certificates (MTCs) issued under the name “Shangang Steel Sdn Bhd,” yet checks with the Companies Commission of Malaysia (SSM) confirm that no such company is registered. The MTCs also lacked the required signatures and stamps, raising strong suspicion of fabrication and deliberate misrepresentation.
Further irregularities were noted in the shipment’s routing. The cargo was exported through Port Klang, despite the fact that Malaysia has only one legitimate hot‑rolled plate producer, which does not export through that port and has confirmed that the material in question is not Malaysian‑made. These discrepancies point to the possibility that foreign‑produced steel may have been passed off as Malaysian origin to evade US trade measures, using falsified documentation and unregistered entities. Such practices not only mislead foreign authorities but also risk dragging Malaysia into circumvention investigations that have nothing to do with our domestic producers.
According to the Department of Statistics Malaysia (DOSM), steel plates were Malaysia’s fourth‑largest steel export to the United States in 2025, totaling 51,977MT, a 327% increase compared to 2024. This unusually steep rise, when viewed alongside the recent incident, raises legitimate concerns about whether all shipments attributed to Malaysia are genuine.
This incident raises serious questions about how a non‑existent company could obtain export documentation or a Certificate of Origin (COO). It also highlights potential gaps in verification processes that require urgent attention. MISIF views this matter with deep concern, as these actions undermine the integrity of Malaysia’s steel industry and threaten the credibility of legitimate producers who comply fully with international trade rules.
Potential Impact on Malaysia’s Steel Industry
The continued misuse of Malaysian corporate identities in foreign steel shipments poses a significant reputational risk. Once foreign authorities begin associating Malaysia with transshipment or falsified documentation, the trust built by our industry over decades can erode quickly. Rebuilding that confidence is not a simple task; it often requires years of corrective engagement and heightened scrutiny from trading partners.
There is also a real possibility of increased enforcement attention from US Customs and Border Protection (CBP) and other trade authorities. Even a single suspicious shipment can trigger broader investigations, resulting in more frequent inspections, longer clearance times, and additional verification requirements for all Malaysian-origin steel. These measures would slow down legitimate trade and increase compliance costs for exporters who are already operating transparently and responsibly.
Malaysia may also face exposure to anti‑circumvention actions if such patterns persist. US steel associations have been actively advocating for stronger enforcement tools, and repeated cases involving falsified Malaysian origin could lead to country‑wide findings, additional duties, or blanket restrictions. Such outcomes would not only affect the companies involved but could disrupt the entire steel export ecosystem and limit market access for compliant producers.
Finally, fraudulent exporters offering steel at artificially low prices create unfair competition for domestic manufacturers. Local mills that comply with regulations, maintain proper documentation, and bear the full cost of production cannot compete with illicitly priced material. This distorts the market, erodes margins, and threatens the long‑term sustainability of Malaysia’s legitimate steel industry.
MISIF strongly urges authorities to investigate the issuance of COOs linked to unregistered companies, strengthen verification processes at ports, and ensure that Malaysia’s steel exports remain credible, transparent, and compliant with international trade rules. Protecting Malaysia’s reputation is essential to safeguarding market access and maintaining the competitiveness of our domestic steel sector.