Malaysia’s Steel CCUS Pilot Tests the Cost of Lower-Carbon Industry

Kuala Lumpur, 13 October 2026 – Malaysia is implementing a carbon capture, utilisation and storage pilot at an East Coast iron and steel plant, with the project expected to be finalised by the end of 2027. The initiative is intended to generate cost and reporting data that can guide the industry’s response to tighter international carbon rules and rising pressure to decarbonise heavy manufacturing.

The Investment, Trade and Industry Ministry disclosed the timetable in a written parliamentary reply. It said the pilot should provide a clearer view of whether CCUS methods are suitable for steel producers and their supply chain, including micro, small and medium enterprises. The project remains a test; it should not yet be treated as proof that the technology is commercially viable across Malaysia’s steel sector.