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Home / 2009 Annual Report: Chairman’s Statement

On behalf of the Board of Directors (Board), it is my pleasure to present the Annual Report and Audited Financial Statements of Malaysia Steel Works (KL) Bhd (“Masteel”) for the financial year ended 31st December 2009.


Masteel had not been spared by the impact of the financial crisis emanating from the US sub prime fall out. The crisis had resulted in the dramatic reduction of global liquidity and demand that had led to a substantial plunge in selling price and sale volumes for steel. The negative impact was most prominent during the first half of 2009.

Fortunately, global and domestic restocking activities for steel products commenced in earnest in July 2009 and consequently the company enjoyed better sale volume and margin during the second half of 2009. However, this recovery in earnings was insufficient to offset the weak performance of the 1st half of 2009.

On a positive note, Masteel has continued to manufacture higher quality products. Our efforts have culminated in gaining the endorsement from the Australian Certification Authority for Reinforcing Steels Ltd certifying that Masteel steel products conformed to the very stringent Australian Standard. This accolade had led to the signing of a RM120million off-take agreement with Stemcor UK for sale of steel bars to Australia.

Despite the difficult business environment this year, Masteel continued to improve its productivity and product quality to pave the way for better times ahead.


With strong growth being registered this year in Brazil, Russia, India, Indonesia and China as well as overall economic recovery in other Asian countries, the overall demand for Masteel’s steel products are expected to recover from the lows of 2009. The economy of United States of America have also continued to stabilise and register a positive growth which will further drive the global recovery. Owing to higher steel prices and better demand from the various stimulus packages that are being implemented by various governments, the performance of the company is expected to improve in 2010.


I would like to extend my sincere appreciation to the management and staff for their performance, dedication and hardwork. Last but not least, my heartfelt thanks to our valued customers, stakeholders, business, financial partners and the relevant authorities for their strong support and confidence they have had in the Group.



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