KUALA LUMPUR: Malaysia is strengthening international partnerships in rare earth element (REE) processing as part of its economic diplomacy to mitigate geopolitical risks in global trade.
Deputy Investment, Trade and Industry Minister Liew Chin Tong said while Malaysia had been identified as having REE deposits, the country still lacked the expertise and technological capability to process them locally.
“Malaysia continuously leverages strategic cooperation with countries that have the technology and expertise in REE processing.
“Although we have deposits, we still do not yet have the capacity to process them ourselves,” he told the Dewan Rakyat.
Liew said advancing domestic research and development (R&D) was critical so that Malaysia could eventually produce high-tech products from its own raw materials.
“To this end, the government is exploring opportunities for cooperation with countries possessing advanced REE technology through high-level meetings, courtesy calls, trade and investment missions, free trade negotiations and bilateral engagements,” he said.
He was responding to Datuk Indera Mohd Shahar Abdullah (BN–Paya Besar), who asked how the government planned to use mineral deposits as a diplomatic tool to reduce the impact of geopolitical tensions on global trade.
Liew said a special task force on the development of the REE industry had been established to chart strategies and address issues, while the ministry chaired the technical committee on REE midstream and downstream development.
“These platforms also review aspects of investment, technology and incentives, including research, development, commercialisation and innovation for Malaysia’s REE industry,” he said.
Liew added that Malaysia had imposed a moratorium on raw REE exports to ensure that only processed materials could leave the country.
“At present, China controls around 90 per cent of global REE processing capacity, and rare earths have been used as leverage in trade wars.
“Malaysia is therefore in discussions with multiple countries, including China and the United States, to secure processing capability while building our own capacity,” he said.
© New Straits Times Press (M) Bhd
