KUALA LUMPUR: The government will ensure the development of the rare earth element (REE) industry progresses, simultaneously encompassing the upstream and downstream sectors to meet industrial needs, said Economy Minister Rafizi Ramli. He stated that the strategy is aimed at enabling industry players, including international companies, to prepare and seize opportunities available in Malaysia. As part of this strategy, plans have been outlined to establish two processing plants in the next three years.

According to BERNAMA News Agency, Rafizi expressed hope that global investors, particularly those from Japan, would recognize Malaysia’s plan. He indicated that investments built around processing plants or downstream industries, like battery factories, require a timeline of two to three years to materialize. Rafizi emphasized the importance of this timeline for investment planning during his speech at a conference organized by the East Coast Economic Region Development Council (ECERDC).

Rafizi further highlig
hted Malaysia’s current lack of technological expertise in processing REE raw materials and the need to attract investments from advanced nations to develop this capability. He noted that the government’s policy of banning unprocessed REE exports is intended to boost national revenue from these resources. He acknowledged the challenge posed by state governments, which might advocate for the resumption of REE exports due to their reliance on industry royalties.

The Economy Minister also expressed concern that allowing exports could deplete Malaysia’s raw material reserves swiftly. Therefore, the federal government remains focused on establishing processing plants to prevent the exhaustion of these valuable resources.