Business Times Singapore · অর্থনীতি

Malaysia allows first export of unprocessed rare earths under new rules

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It is among the nations that are developing capacity for the minerals to reduce reliance on China

Published Thu, Oct 22, 2026 · 01:21 PM

[KUALA LUMPUR] Malaysia has given the go-ahead for a batch of unprocessed rare earths to be exported, the first approval under a new framework designed to permit testing and potentially encourage investments in local capacity.

A single export application for research and development purposes has been permitted by the Department of Mineral and Geoscience Malaysia, the Ministry of Natural Resources and Environmental Sustainability said in response to a Bloomberg query. It did not identify the applicant or provide details.

Rare earths are among the most critical raw materials on the planet, deeply embedded in the technologies that underpin modern life, including an array of key defence applications.

While China has long dominated their mining and processing, other nations including Malaysia are now stepping up efforts to develop their own capacity in a push to reduce reliance on Beijing.

At present, the South-east Asian nation hosts Australia’s Lynas Rare Earths, one of only two major producers outside China, with local conglomerates including Berjaya also exploring projects.

Among other overseas companies, France’s Carester plans to build a rare earths separation plant in the northern state of Perak with Malaysia’s ‌Malaco Mining Group, and more than a dozen US firms are also exploring local opportunities.

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Earlier in October, Malaysia released guidelines for the conditional export of raw rare earths, easing a moratorium that had been in place since 2024.

Under the revised framework, shipments of unprocessed materials can be permitted for research and development or processing, subject to conditions.

“The guidelines are open to eligible applicants, including foreign companies, subject to compliance with the relevant regulatory requirements,” the ministry said.