Posted on 14 Dec 2015
In a press statement, the federation said: “We are of the strong view that this proposal is neither feasible nor implementable and will cause irreparable damage to the whole Malaysian iron and steel industry. The proposal should be nipped in the bud and objected outright.”
The report said one model proposed was to have the Government hold a 60% stake in the SPV while Megasteel would own 40% and be responsible for the SPV’s management.
Misif said
Megasteel’s proposal, if implemented, would infringe the Malaysian
Competition Act 2010, especially on abuse of dominant position.
Megasteel would have an unfair advantage over other manufacturers, having access to confidential information such as who was buying which product, from where it was buying it and at what price.
The proposed SPV was said to work a way similar to Padiberas Nasional Bhd but Misif said that unlike rice or refined sugar, there were “just too many grades and specifications involving the downstream steel products.” Misif noted that there were at least 305 grades/specifications of steel products ranging from HRC to pipes, making the proposal “untenable or not implementable.”
