Siena:The government has not yet selected a location in Sabah as a living laboratory for the Low-Altitude Economy due to the necessity for a comprehensive assessment. The Ministry of Investment, Trade and Industry (MITI) indicated that any state might be considered based on specific needs, advantages, and readiness, with Sabah being a strong candidate.
According to BERNAMA News Agency, Sabah's potential applications include drone logistics to remote areas for delivering supplies, medicines, and medical samples, smart agriculture, infrastructure inspections, disaster management, and search and rescue operations. MITI stated that the government, through the National Aerospace Industry Corporation (NAICO) Malaysia, is developing a Low-Altitude Economy Roadmap to prepare the country for phased implementation up to 2040.
This roadmap involves creating an ecosystem and implementation model and identifying locations for living laboratories. The government is considering all states, including Sabah, for developing the Low-Altitude Economy and is exploring support and incentives for local companies and technology players to engage in pilot projects.
MITI was addressing a question from Mohd Kurniawan Naim Moktar on designating an inland district in Sabah as a Low-Altitude Economy living laboratory under the 13th Malaysia Plan, including potential incentives for local companies and technology players.
In a separate matter, MITI highlighted the government's commitment to developing a rare earth elements (REE) ecosystem to maximize the economic value of local mineral resources. This includes strengthening midstream and downstream activities like permanent magnet manufacturing, advanced materials, electronic components, and batteries.
Regarding the agreement between Lynas Rare Earths Ltd and the U.S. government, MITI explained that Lynas informed them of a commercial arrangement through its subsidiary Lynas LLC USA to finalize a materials supply agreement for advanced manufacturing. The supply of rare earth oxides is intended for research and development in the permanent magnet manufacturing industry.
MITI noted the technical difficulties in determining the direction of finished REE products or their end use due to diverse applications across industries and fragmented supply chains. The integrated development of REE resources is expected to create positive opportunities for Malaysia, aligning with the New Industrial Master Plan 2030 aspirations.
MITI was responding to Datuk Ahmad Amzad Mohamed @ Hashim's inquiry about the four-year rare earth supply agreement between Lynas and the Pentagon and its implications for Malaysia's strategic interests.