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OPINION | Dear PMX, lets take a walk down memory lane…the Perwaja Steel fiasco
26 May 2026 • 8:00 AM MYT
The Unspinners
You have fiercely opposed Perwaja Steel which reportedly became a central point of contention between you and then-PM4.
Apparently, when the Asian Wall Street Journal (AWSJ) exposed the billions in losses in Perwaja Steel, you confronted the then PM, PM4.
According to reports, you reportedly stormed into the office of PM4 with a copy of the AWSJ, - set out ad verbatim here as per the report - reminding PM4 that the government could not cover up the fiasco.
Perwaja scandal was, at that time in the mid 90s, Malaysia's biggest and most well-known financial scam and was the central piece of your anti-corruption campaign.
You, attributed the dismal performance of Perwaja Steel to poor management and irregularities in the payment and award of contracts.
Do remember that in 1996, it was you who made public an audit report on the alleged irregularities at Perwaja Steel.
Perwaja Steel was established in 1982 to spearhead Malaysia's heavy industrialization drive and reduce reliance on imported steel. Its core objective was to create a fully integrated steel mill to supply high-grade, value-added steel for the automotive, engineering, and construction sectors, positioning the nation as an industrialized economy by 2020.
Perwaja failed primarily due to massive mismanagement, severe financial irregularities, and a lack of proper economic planning, including the absence of a localized raw material ecosystem.
Key reasons for the collapse include:Perwaja used an experimental Direct Reduction (DR) technology that relied on local gas but required specific foreign iron ore. When this failed, they were forced to buy imported scrap steel, exposing them to volatile global currency and metal prices.
Hundreds of millions in funds were misused or paid to non-existent entities, culminating in billions of ringgit in debt.
The project was heavily shielded as a national prestige project, allowing mismanagement and debt to accumulate unchecked before the company eventually collapsed with over RM 10 billion in liabilities.
Perwaja was a classic build a "brand" purely as an aesthetic exercise first and then forcing an ecosystem to fit in.
Which you are now doing with the EV cars.
Do not justify and say the same would not happen to the EV cars.
You, of all people, experienced the 1st hand how forcing an ecosystem into a brand failed and collapse.
The signs are all there with regard to the government’s decision on the development and growth of the EV cars in Malaysia.
Do you want to preside and walk through the same path for EV cars as what you went through with Perwaja?
You have fiercely opposed Perwaja Steel which reportedly became a central point of contention between you and then-PM4.
Apparently, when the Asian Wall Street Journal (AWSJ) exposed the billions in losses in Perwaja Steel, you confronted the then PM, PM4.
According to reports, you reportedly stormed into the office of PM4 with a copy of the AWSJ, - set out ad verbatim here as per the report - reminding PM4 that the government could not cover up the fiasco.
Perwaja scandal was, at that time in the mid 90s, Malaysia's biggest and most well-known financial scam and was the central piece of your anti-corruption campaign.
You, attributed the dismal performance of Perwaja Steel to poor management and irregularities in the payment and award of contracts.
Do remember that in 1996, it was you who made public an audit report on the alleged irregularities at Perwaja Steel.
Perwaja Steel was established in 1982 to spearhead Malaysia's heavy industrialization drive and reduce reliance on imported steel. Its core objective was to create a fully integrated steel mill to supply high-grade, value-added steel for the automotive, engineering, and construction sectors, positioning the nation as an industrialized economy by 2020.
Perwaja failed primarily due to massive mismanagement, severe financial irregularities, and a lack of proper economic planning, including the absence of a localized raw material ecosystem.
Key reasons for the collapse include:Perwaja used an experimental Direct Reduction (DR) technology that relied on local gas but required specific foreign iron ore. When this failed, they were forced to buy imported scrap steel, exposing them to volatile global currency and metal prices.
Hundreds of millions in funds were misused or paid to non-existent entities, culminating in billions of ringgit in debt.
The project was heavily shielded as a national prestige project, allowing mismanagement and debt to accumulate unchecked before the company eventually collapsed with over RM 10 billion in liabilities.
Perwaja was a classic build a "brand" purely as an aesthetic exercise first and then forcing an ecosystem to fit in.
Which you are now doing with the EV cars.
Do not justify and say the same would not happen to the EV cars.
You, of all people, experienced the 1st hand how forcing an ecosystem into a brand failed and collapse.
The signs are all there with regard to the government’s decision on the development and growth of the EV cars in Malaysia.
Do you want to preside and walk through the same path for EV cars as what you went through with Perwaja?
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