KUALA LUMPUR, Feb 5 — Malaysia’s exports of rare earth elements (REE) are not limited to the United States despite the Malaysia-US Reciprocal Trade Agreement (ART), said Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup.
Arthur said the agreement does not stipulate exclusive commitments, supply obligations or market preferences that would bind Malaysia to export REE to any particular country.
“The Malaysian government also wishes to stress that REE has never been offered as a concession or quid pro quo in any trade or tariff negotiations with the United States,” he said when winding up the debate on the motion of thanks for the Royal Address for his ministry in the Dewan Rakyat today.
He said that in line with the national policy, Malaysia maintains a ban on the export of raw REE to ensure the strategic resource is not exploited without value addition, and to encourage the development of the entire domestic industry value chain, including processing, research and development, and domestic product manufacturing.
“This policy was formulated with due consideration for the country’s long-term interests, the division of jurisdiction between the federal government and state governments, and the need to ensure that the development of the REE industry is carried out in a sustainable and responsible manner,” he said.
Responding to an interjection by Fathul Huzir Ayob (PN-Gerik) on whether the government planned to open more REE mines in the near term, Arthur said the REE industry in Malaysia is in its infancy as the country is not yet ready in terms of expertise and technology to fully utilise REE resources.
In addition, he said the country does not have processing plants to extract high-value REE from local sources, thereby slowing industry development.
“At the federal government level, we set forward-looking policies relating to the REE industry. However, any specific matters on mining permits fall under the jurisdiction of state governments, which determine the sites permitted for mining activities,” he said.
Meanwhile, commenting on the National Groundwater Resources Mapping and Assessment Project, Arthur said it is ongoing in states including Kedah, Melaka, Sabah and Kelantan.
He said the project in Kedah was completed in 2025, while the endeavour in Melaka is set to be done this year. In Sabah and Kelantan, it will be completed in 2028 and 2029, respectively.
“Subsequently, the mapping project in other states will be implemented in stages, subject to approval of allocations under the Rolling Plan of the 13th Malaysia Plan (13MP),” Arthur said.
The National Groundwater Resources Mapping and Assessment Project focuses on assessing groundwater potential and identifying potential areas, as well as fields that can be developed to address the impact of global climate change.
