KUALA LUMPUR: Malaysia is seeking greater foreign investment and technology transfers to develop its rare earth industry and tap mineral resources estimated to be worth RM747.2 billion.
Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani said strategic partnerships with technologically advanced countries were needed to strengthen Malaysia's rare earth processing and manufacturing capabilities, particularly in high-value industries.
He said Malaysia had an estimated 16.2 million tonnes of non-radioactive rare earth resources, with industry development expected to create 4,000 jobs.
Johari said the government aimed to develop an integrated rare earth ecosystem covering the entire value chain, from mining and processing to finished product manufacturing.
"Malaysia needs to leverage strategic cooperation and technology transfers from partner countries with expertise in rare earth processing," he said in a parliamentary reply.
He said such cooperation would strengthen domestic capabilities and position Malaysia as a key player in the global critical minerals supply chain.
The approach was in line with the New Industrial Master Plan 2030 (NIMP 2030), which aims to strengthen the country's industrial capabilities and attract high-value investments, he added.
Citing existing investments, Johari said Australian-owned Lynas Malaysia Sdn Bhd had operated a rare earth processing facility in Gebeng, Pahang, since 2012.
Lynas invested RM3.8 billion in Malaysia between the 2008 and 2025 financial years, while contributing an estimated RM4.81 billion to the country's gross domestic product between 2013 and 2021, based on company information, he said.
Johari was responding to Datuk Ahmad Amzad Mohamed @ Hashim (PN-Kuala Terengganu), who asked about the government's position on Lynas's four-year rare earth supply arrangement with the United States Department of Defense and its implications for Malaysia's strategic interests.
On the agreement, Johari said Lynas had informed the government that it was a commercial arrangement managed by its American subsidiary, Lynas LLC USA.
He said the company indicated that the rare earth oxides were intended for research and development in the permanent magnet manufacturing industry.
Johari acknowledged that determining the ultimate use of rare earth materials was difficult because global supply chains were fragmented, with products frequently changing hands between manufacturers and suppliers.
© New Straits Times Press (M) Bhd