Policy Ideas No. 84 –
Carbon Pricing for the Malaysian Steel Industry: Incentivising Sustainable Growth
Authors: Prof Renato Lima-de-Oliveira and Dr Pieter E. Stek
As Malaysia moves towards introducing carbon pricing for the iron and steel sector in 2026, this paper builds on IDEAS’ earlier publication, Asserting Climate Change Leadership in ASEAN: Carbon Pricing for the Malaysian Steel Industry, to examine carbon pricing as a policy tool for aligning the sector with national net zero goals. It considers potential implementation options and identifies the pricing level at which low-carbon production becomes commercially viable. The analysis highlights the importance of early action to address the sector’s rising emissions, manage exposure to evolving international trade measures and safeguard competitiveness. Without timely intervention, Malaysia’s steel sector risks remaining locked into a high-emissions trajectory, undermining both environmental objectives and long-term economic resilience.
Explore the report’s insights and policy suggestions to understand why a rapid but phased action is important for curbing emissions and advancing towards a more sustainable, low-carbon future.
Seiring dengan langkah Malaysia untuk memperkenalkan penetapan harga karbon bagi sektor besi dan keluli pada tahun 2026, kertas ini berdasarkan penerbitan terdahulu IDEAS, Memimpin Perubahan Iklim di ASEAN: Penentuan Harga Karbon untuk Industri Keluli Malaysia (Asserting Climate Change Leadership in ASEAN: Carbon Pricing for the Malaysian Steel Industry), untuk meneliti penetapan harga karbon sebagai alat dasar bagi menyelaraskan sektor ini dengan matlamat pelepasan karbon sifar bersih negara. Ia mempertimbangkan pilihan pelaksanaan yang berpotensi dan mengenal pasti paras harga di mana pengeluaran rendah karbon menjadi berdaya maju secara komersial. Analisis ini menekankan kepentingan tindakan awal untuk menangani peningkatan pelepasan karbon sektor ini, mengurus pendedahan kepada langkah perdagangan antarabangsa yang semakin berkembang, serta melindungi daya saing. Tanpa campur tangan tepat pada masanya, sektor keluli Malaysia berisiko akan terus terperangkap dalam trajektori pelepasan karbon yang tinggi, sekali gus menjejaskan matlamat alam sekitar dan daya tahan ekonomi jangka panjang.
Telusuri pandangan serta cadangan dasar dalam laporan ini untuk memahami mengapa tindakan segera tetapi berperingkat adalah penting bagi membendung pelepasan karbon dan bergerak ke arah masa depan yang lebih mampan serta rendah karbon.
ASEAN Integration Report 2024 –
Inclusive Trade: Perspectives on Regulatory Challenges for MSMEs in ASEAN
Authors: Sharmila Suntherasegarun, Meisha Lukman and Sharanyah Nair
Representing over 97% of all enterprises, Micro, Small, and Medium-sized Enterprises (MSMEs) are crucial to the ASEAN economy but cross-border trade in the region remains modest, accounting for only 18% of the total export value. .
The ASEAN Integration Report, titled Inclusive Trade: Perspectives on Regulatory Challenges for MSMEs in ASEAN, provides an overview of the challenges faced by MSMEs in the region, with a particular focus on the trade regulatory complexities that disproportionately burden MSMEs. .
This report examines broader structural obstacles, support mechanisms, and the business environment impacting MSMEs. The analysis focuses on trade regulation such as Non-Tariff Measures (NTMs) and the impact on MSMEs —highlighting the need for greater regulatory convergence in ASEAN. Harmonising regulations, especially in the food sector, where NTMs are widespread, and streamlining these NTMs can boost MSME competitiveness and improve their market access..
This research was carried out by IDEAS researchers, incorporating significant insights and perspectives from domestic and international stakeholders, including policymakers and business associations, through roundtable discussions and consultations.
Brief IDEAS No. 41 –
Semiconductors: Navigating Supply Chain Resilience and Trade
Authors: Imran Said Shamsunahar, Alissa Marianne Rode and Sharanyah Nair
IDEAS’ paper, “Semiconductors: Navigating Supply Chain Resilience and Trade,” delves into the crucial relationship between multilateral trade integration and supply chain resilience, with the semiconductor industry in the limelight. The paper explores key challenges to supply chain resilience, with a particular focus on Taiwan’s and Malaysia’s respective positions in critical components and as key supporting players in the semiconductor supply chain. Additionally, it provides recent arguments on how multidimensional free trade agreements might enhance supply chain resilience.
As the semiconductor industry is one that is vastly interconnected with multiple countries producing key components of the supply chain, the recent push for more indigenous chip production capabilities to enhance supply chain resilience creates significant hurdles. While policymakers advocate for protectionist measures, industry experts caution against the feasibility of such plans as the challenges include high upfront investments, rising costs for consumers, lack of skilled labour, and security concerns arising from the geopolitical trade issues.
Striving towards resilience means that the robust relationship between Malaysia and Taiwan is one that must not be ignored. As Malaysia targets higher value-added activities and Taiwan continues to lead in semiconductor production, the paper suggests that trade openness, diversification, and collaboration can mitigate the impact of disruptions and enhance supply chain resilience.
Kertas kerja IDEAS, “Semikonduktor: Mengemudi Daya Tahan Rantaian Bekalan dan Perdagangan”, mengupas hubungan penting antara integrasi perdagangan multilateral dan daya tahan rantaian bekalan, dengan tumpuan utama kepada industri semikonduktor. Kertas kerja ini meneroka cabaran utama terhadap daya tahan rantaian bekalan, dengan fokus khusus pada kedudukan Taiwan dan Malaysia dalam komponen kritikal serta peranan mereka sebagai pemain sokongan utama dalam rantaian bekalan semikonduktor. Di samping itu, ia memberikan hujah terkini tentang bagaimana perjanjian perdagangan bebas multidimensi dapat meningkatkan daya tahan rantaian bekalan.
Industri semikonduktor yang sangat saling berkaitan dengan banyak negara yang menghasilkan komponen utama rantaian bekalan, kini menghadapi desakan untuk meningkatkan keupayaan pengeluaran cip domestik bagi meningkatkan daya tahan rantaian bekalan, yang menimbulkan halangan yang ketara. Walaupun penggubal dasar menganjurkan Langkah perlindungan, pakar industri memberi amaran tentang keberkesanan perancangan tersebut kerana cabaran yang dihadapi termasuk pelaburan awal yang tinggi, peningkatan kos untuk pengguna, kekurangan tenaga kerja mahir, dan kebimbangan keselamatan yang timbul daripada isu perdagangan geopolitik.
Berusaha ke arah daya tahan bermakna hubungan kukuh antara Malaysia dan Taiwan tidak boleh diabaikan. Tatkala Malaysia menyasarkan aktiviti bernilai tambah yang lebih tinggi dan Taiwan terus memimpin dalam pengeluaran semikonduktor, kertas kerja ini mencadangkan bahawa keterbukaan perdagangan, kepelbagaian, dan kerjasama dapat mengurangkan impak gangguan dan meningkatkan daya tahan rantaian bekalan.
Policy Ideas No. 79
Asserting Climate Change Leadership in ASEAN: Carbon Pricing for the Malaysian Steel Industry
Authors: Assoc Prof Dr Renato Lima de Oliveira, Dr. Pieter Stek and Raymond Phang
In response to alarming projections of a tripling of emissions by 2030 in Malaysia's steel sector, IDEAS’ report titled 'Asserting Climate Change Leadership in ASEAN: Carbon Pricing for the Malaysian Steel Industry,' advocates for the implementation of carbon pricing measures.
The report highlights the need for immediate action to curb emissions growth and align the steel sector with sustainability goals. It proposes a comprehensive strategy, including carbon pricing, coalition building, and support for renewable energy initiatives.
Read the report's findings and policy recommendations, and learn why proactive measures are essential to mitigate emissions growth and pave the way towards a greener and more sustainable future.
Sebagai respon kepada ramalan yang membimbangkan tentang peningkatan tiga kali ganda dalam pelepasan karbon menjelang 2030 dalam sektor keluli Malaysia, laporan IDEAS bertajuk 'Memimpin Perubahan Iklim di ASEAN: Penentuan Harga Karbon untuk Industri Keluli Malaysia,' menggesa pelaksanaan langkah penetapan harga karbon.
Laporan ini menekankan keperluan tindakan segera untuk mengawal peningkatan pelepasan karbon dan penjajaran sektor keluli dengan matlamat kelestarian. Ia mencadangkan sebuah strategi komprehensif, termasuk penetapan harga karbon, mewujudkan pakatan, dan sokongan untuk inisiatif tenaga boleh baharu.
Baca dapatan dan cadangan dasar laporan ini, dan ketahui mengapa langkah proaktif penting untuk mengurangkan peningkatan pelepasan karbon dan membuka jalan ke arah masa hadapan yang lebih hijau dan lestari.
Working Paper
Semiconductors: Navigating Supply Chain Resilience and Trade
Authors: Imran Said Shamsunahar, Alissa Marianne Rode, Sharanyah Nair
This brief is a working paper by IDEAS in relation to the semiconductor industry, its relationship with supply chain resilience and potential trade implications. The semiconductor industry stands as a foundation of modern technology, powering an array of electronic devices essential to daily life. With over 100 billion devices incorporating semiconductors, their presence underscores their pivotal significance in driving global value chains and technological advancement (SIA, 2023). The semiconductor supply chain operates within a highly complex web which incorporates players from all levels of the industry.
However, this complexity also presents challenges, including dependencies on specific nodes and geopolitical risks, exemplified by disruptions caused by the pandemic and rising trade tensions between the US and China. In navigating these challenges, policymakers must consider strategies to enhance supply chain resilience. This working policy brief explores the current thinking on semiconductor supply chain resilience, with a focus on Taiwan and Malaysia's roles within the industry. It highlights the challenges and potential benefits of trade agreements in bolstering resilience and underscores the importance of proactive measures to mitigate risks and foster a more resilient semiconductor ecosystem.
Brief IDEAS No. 39 -
Competitive Neutrality in the Malaysian Power Sector: Removing Barriers for a Greener and More Innovative Energy Industry
Authors: Renato Lima de Oliveira
This Brief IDEAS delves into Malaysia’s energy sector to determine the current challenges impeding the transition to renewable energy sources. Primary amongst these challenges is the lack of competition within the Malaysian energy sector and a failure to implement the principles of Competitive Neutrality as defined by the OECD.
This study explores the historical context of energy supply in Malaysia and the dominance of state-owned enterprises in the sector. It acknowledges that although this model of energy supply may have been effective in providing reliable and affordable traditional energy to Malaysian consumers it is not equipped to effectively transition toward renewable energy.
This report goes on to suggest policy reforms in two key areas that the author believes would promote the transition to renewable energy sources. Firstly, it advocates for a comprehensive reform of the electricity supply industry to augment the share of renewable energy and cultivate a more competitive market. Secondly, it recommends the implementation of the principles of Competitive Neutrality both broadly across government-linked companies (GLCs) and specifically within the electricity supply industry.
Read the full paper to discover how Malaysia can effectively transition toward renewable energy sources and achieve its goal of net zero emissions by 2050.
Kertas Polisi Ringkas IDEAS ini menyelidiki sektor tenaga Malaysia untuk menentukan cabaran semasa yang menghalang peralihan kepada sumber tenaga boleh baharu. Cabaran utama adalah kekurangan persaingan dalam sektor tenaga Malaysia dan kegagalan untuk melaksanakan prinsip Keberkecualian Daya Saing seperti yang ditakrifkan oleh Pertubuhan Kerjasama Pembangunan dan Ekonomi (OECD).
Kajian ini meneroka konteks sejarah bekalan tenaga di Malaysia dan penguasaan perusahaan milik kerajaan dalam sektor tersebut. Ia mengakui bahawa walaupun model bekalan tenaga ini mungkin berkesan dalam menyediakan tenaga tradisional yang boleh diharap dan mampu milik kepada pengguna Malaysia, ia tidak dilengkapi untuk beralih secara berkesan ke arah tenaga boleh baharu.
Laporan ini seterusnya mencadangkan pembaharuan dasar dalam dua bidang utama yang penulis percaya akan mendorong peralihan kepada sumber tenaga boleh baharu. Pertama, ia menyokong pembaharuan menyeluruh industri bekalan elektrik untuk menambah bahagian tenaga boleh baharu dan memupuk pasaran yang lebih berdaya saing. Kedua, laporan ini menyarankan pelaksanaan prinsip Keberkecualian Daya Saing secara meluas merentasi syarikat berkaitan kerajaan (GLC) dan khususnya dalam industri bekalan elektrik.
Baca kertas kerja dasar ini untuk mengetahui cara Malaysia boleh beralih secara berkesan ke arah sumber tenaga boleh baharu dan mdencapai matlamat pelepasan karbon sifar bersih menjelang tahun 2050.
ASEAN Integration Report 2023
Advancing Regional Integration: Priorities of the Youth in the AEC Blueprint 2025
Authors: Kirjane Ngu, Laura Zhang, Yvonne Tan, Melanie Chan, Julia Merican, Jazreen Harith, Sharmila Suntherasegarun, Sharanyah Nair, Imran Shamsunahar, and Manoj Joshi
The youth segment in ASEAN holds increasing significance, constituting 34% of the region’s total population. Consequently, the objectives of the ASEAN Community Vision (AEC) 2025 emphasise policies and initiatives geared toward the youth, aiming to equip them with the necessary tools and resources for their development. As part of the goals outlined in the ASEAN Community Vision 2025, there is a continued effort to promote youth participation and engagement in regional development. However, the uncertainty associated with the post-pandemic economy exacerbates their vulnerability, especially in navigating their education and employment prospects.
Given these circumstances, the ASEAN Integration Report 2023 monitors progress regarding the implementation of the AEC Blueprint 2025, evaluating the issues and pillars relevant and important to ASEAN youths in the context of a post-pandemic environment—specifically, Labour Mobility and Connectivity, Technical and Vocational Education and Training (TVET), Micro, Small and Medium Enterprises (MSMEs), and the Digital Economy. The report concentrates on the recent developments and advancements in each pillar, delving further into emerging challenges within these domains, taking into account the viewpoints of ASEAN youths.
This study was conducted by IDEAS researchers, with valuable input and insights from various stakeholders such as youth leaders, entrepreneurs, experts, and academic institutions from ASEAN through roundtable discussions.
Segmen belia di ASEAN memegang peranan yang semakin penting, menyumbang 34% daripada keseluruhan jumlah penduduk di rantau ini. Oleh itu, objektif Visi Komuniti ASEAN (AEC) 2025 menekankan dasar dan inisiatif yang tertumpu kepada belia, bertujuan untuk melengkapkan mereka dengan alat dan sumber yang diperlukan untuk pembangunan mereka. Sebagai sebahagian daripada matlamat yang terdapat dalam Visi Komuniti ASEAN 2025, terdapat usaha berterusan untuk mempromosikan penyertaan dan penglibatan belia dalam pembangunan serantau. Walau bagaimanapun, ketidakpastian yang berkaitan dengan ekonomi pasca-pandemik menambah kerentanan mereka, terutamanya dalam mengendalikan prospek pendidikan dan pekerjaan mereka.
Dengan keadaan ini, Laporan Integrasi ASEAN 2023 memantau kemajuan berkaitan dengan pelaksanaan Pelan Tindakan AEC 2025, menilai isu dan tunggak yang berkaitan dan penting untuk belia ASEAN dalam konteks persekitaran pasca-pandemik—khususnya, Mobiliti Tenaga Kerja dan Kesalinghubungan, Pendidikan dan Latihan Teknikal dan Vokasional (TVET), Perusahaan Mikro, Kecil dan Sederhana (MSMEs), dan Ekonomi Digital. Laporan ini menumpukan kepada perkembangan dan kemajuan terkini dalam setiap tunggak, meneroka lebih lanjut cabaran-cabaran baru dalam bidang ini, dengan mengambil kira pandangan belia ASEAN.
Kajian ini dijalankan oleh penyelidik IDEAS, dengan sumbangan dan pandangan yang berharga daripada pelbagai pihak berkepentingan seperti pemimpin belia, usahawan, pakar, dan institusi akademik daripada ASEAN melalui perbincangan meja bulat.
Policy Paper No 78 -
Solidarity Amidst Rarity: Reforms for Equitable and Sustainable Rare Disease Management
Authors: Professor Dr. Asrul Akmal Shafie, Kirjane Ngu, Dr. Tuqa Haitham Allayla, Yvonne Tan and Melanie Chan
Amidst the strides made by the Malaysian government in improving healthcare access, a silent struggle persists for rare disease patients. This study conceptualises the labyrinth of barriers in accessing healthcare for rare disease patients from a two-fold perspective: the shortcomings and challenges faced by the healthcare system and the capacity and struggles faced by the patients themselves.
In the latter part of the report, we delve into a set of recommendations structured around four pivotal pillars of reform. From short-term resource capacity building, mid-term financing frameworks and strengthened governance systems, to ultimately long-term social protection enhancements, these pillars have been stratified according to their policy complexities. Read the paper to better understand the plight of rare disease patients and their caregivers, and learn how Malaysia can move closer towards the attainment of inclusive healthcare access for all.
Di tengah-tengah usaha yang telah dilakukan oleh kerajaan Malaysia dalam meningkatkan capaian penjagaan kesihatan, pesakit penyakit jarang jumpa masih lagi menempuhi pelbagai cabaran dalam diam. Kajian ini meneliti kesukaran dalam mencapai penjagaan kesihatan bagi pesakit penyakit jarang jumpa daripada dua perspektif: kelemahan dan cabaran yang dihadapi oleh sistem penjagaan kesihatan dan kapasiti pesakit itu sendiri.
Di bahagian akhir laporan, kami telah mengkaji satu set cadangan yang dibina di sekitar empat tunggak penting reformasi. Daripada pembinaan kapasiti sumber daya jangka pendek, rangkaian kewangan dalam jangka sederhana dan sistem pentadbiran yang perlu diperkukuhkan, sehingga peningkatan perlindungan sosial jangka panjang, empat tunggak ini telah disusun mengikut kepelbagaian dasar mereka. Baca kertas kerja ini untuk memahami lebih lanjut tentang kesukaran dan cabaran yang dilalui oleh pesakit penyakit jarang jumpa dan penjaga mereka, dan ketahui cara bagaimana Malaysia boleh memperolehi capaian penjagaan kesihatan yang inklusif untuk semua.
Brief IDEAS No. 38 -
Belt and Road Initiative (BRI) Projects and Information Asymmetry: Engagements with Local Communities in Malaysia
Authors: Benjamin YH Loh, Imran Shamsunahar and Jazreen Harith
This policy brief is part of IDEAS' research project on the Belt and Road Initiative (BRI). It sheds light on Malaysia's participation in the BRI, a global program initiated by China to promote infrastructure development and enhance trade connectivity in developing nations.
Our stakeholder engagements focused on the local communities impacted by BRI-related projects, specifically the East Coast Rail Link (ECRL) and the Trans-Sabah Gas Pipeline (TSGP). This policy brief presents key findings highlighting how these communities perceive their roles within these federal development projects.
Drawing from the findings, this policy brief provides recommendations to address the challenges associated with federal project management in Malaysia. By implementing these recommendations, we aim to enhance community engagement and address information asymmetry within the context of the BRI projects.
Read the full policy brief to discover more interesting facts about the local response to the BRI in Malaysia.