Kuala lumpur: Malaysia is open to foreign companies establishing joint ventures with local firms to develop rare earth minerals in Malaysia. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz highlighted the country's competitive advantage, citing its estimated rare earth element (REE) deposits of 1.6 million tonnes.

According to BERNAMA News Agency, Malaysia seeks to involve more Malaysians not only in the supply chain but also in economic interests, including equity and shareholding in ventures. Although the Ministry of Investment, Trade and Industry (MITI) has not yet received proposals for new REE processing facilities, the nation is keen on engaging in midstream processing activities instead of merely exporting raw materials, which hold lower economic value.

Malaysia's decision to impose a moratorium on the export of unprocessed rare earth materials from January 1, 2024, aims to encourage the establishment of domestic processing and downstream industries. This move is designed to capture higher value, create jobs, and facilitate technology transfer within the country.

Tengku Zafrul emphasized that the ban on raw REE exports effectively requires foreign companies to set up operations in Malaysia. He noted that MITI allows any country to develop their industries locally, with no restrictions on foreign involvement. The initiative is expected to generate quality employment, open new supply chain opportunities, and increase government revenue through taxation.

Khazanah Nasional Bhd is reportedly engaging with Chinese companies to explore opportunities in REE downstream activities. Tengku Zafrul mentioned Lynas, a fully private company already operating in Malaysia, which exports to South Korea, Japan, and the United States, underscoring Malaysia's neutral stance on international trade.

Addressing ASEAN's fragmented policies on REE and regional strategies, Tengku Zafrul stated that negotiations on national and economic security issues are typically bilateral. He emphasized the importance of protecting national interests while sharing challenges and solutions within the ASEAN framework, particularly concerning Priority Economic Deliverables under the Economic Pillar.