KUALA LUMPUR: Malaysia and the United States (US) have signed a memorandum of understanding (MoU) to strengthen cooperation in developing and securing global supply chains for critical minerals.
A statement released by the White House said the MoU, signed by Prime Minister Datuk Seri Anwar Ibrahim and US President Donald Trump here today, seeks to boost investment and ensure long-term resource stability.
The pact marks a new phase in the partnership between both nations to diversify critical minerals supply chains, promote sustainable mining and processing and encourage investment between US and Malaysian companies.
“The purpose of this MoU is to strengthen cooperation between the participants on critical minerals supply chains development and expansion,” it said.
The MoU also aims to promote trade and investment in exploration, extraction, refining, manufacturing and recycling.
Under the pact, both governments agreed to share knowledge, technical expertise and international best practices to increase Malaysia’s competitiveness in the minerals sector and support joint projects that advance secure and responsible supply chains.
The MoU also opens the door for more US investment in Malaysian mineral assets and industries linked to green technology, rare earth elements and advanced materials.
In a separate joint statement today, Malaysia agreed not to ban or restrict exports of critical minerals or rare-earth elements to the US.
It will also work with US firms to develop these industries and ensure that no restrictions are imposed on the sale of rare-earth magnets to American companies.
Meanwhile, cooperation under the MoU will include “meetings, workshops, seminars and information exchanges with the private sector, universities and other stakeholders” to promote technology transfer and capacity-building.
It further outlines a commitment to streamline regulations and promote good governance, with both sides pledging to take steps toward faster project approvals, fair treatment of investors, and sustainable project management.
To prevent market manipulation and ensure fair pricing, Malaysia and the US will also coordinate to protect their critical minerals markets from “non-market policies and unfair trade practices”.
Both nations are also committed to developing high-standard marketplaces backed by a pricing framework that includes price floors or similar measures.
Officials from both countries will meet quarterly to discuss trade and investment opportunities and review ongoing projects under the MoU.
The agreement, which takes effect immediately, is not legally binding but establishes a framework for cooperation based on mutual trust and shared goals.
“Cooperation under this MoU is subject to the availability of funds and will be carried out in accordance with each country’s laws and regulations.
“The United States and Malaysia believe this cooperation will increase the resilience and sustainability of critical minerals supply chains in both countries,” it said.
© New Straits Times Press (M) Bhd
