Kuala lumpur: Companies involved in midstream and downstream production activities of Rare Earth Elements (REE) are now eligible for incentives under the Promotion of Investments Act 1986, including Pioneer Status and Investment Tax Allowance. The Ministry of Investment, Trade and Industry (MITI) highlighted that these incentives aim to boost high value-added activities, strengthening Malaysia's position as a global and regional hub for REE processing.

According to BERNAMA News Agency, MITI has confirmed that high-technology companies and SMEs may also qualify for special incentives under the same Act. This initiative is part of the ministry's efforts to attract strategic investments to develop the REE processing industry in Malaysia, particularly in Perak. MITI's objective is to ensure that the value add of these materials remains within Malaysia rather than being exported as raw materials.

Moreover, the ministry is actively pursuing cooperation with countries possessing advanced upstream-to-downstream REE technologies. This collaboration between the government and companies aims to create high-skilled job opportunities for locals and promises higher income. MITI emphasizes technology sharing and local vendor development as key requirements in collaborations with foreign expertise.

MITI's strategy is to transition Malaysia from a raw material producer to a significant player in downstream products like Malaysian-made super magnets. The ministry believes that the development of the local REE industry aligns with national policies such as the New Industrial Master Plan 2030 (NIMP 2030) and the National Advanced Materials Technology Roadmap 2021-2030 (NAMTR 2021-2030). A robust local mineral downstream industry will support NIMP 2030's action plans, particularly in advancing economic complexity and pushing for net zero.