Malaysia seeks foreign expertise to unlock RM747bil rare earth potential

KUALA LUMPUR: Malaysia is seeking foreign investment and technology transfers to develop its abundant rare earth industry, which is estimated to be worth RM747.2 billion. Investment Minister Datuk Seri Johari Abdul Ghani emphasized the need for strategic partnerships with advanced nations to bolster Malaysia's processing and manufacturing capabilities, especially in high-value industries.

The country boasts approximately 16.2 million tonnes of non-radioactive rare earth resources, with industry development projected to generate 4,000 jobs. Johari outlined plans to create an integrated rare earth ecosystem, covering mining, processing, and finished product manufacturing. He stressed the importance of leveraging strategic cooperation and technology transfers from partners with expertise in rare earth processing to strengthen domestic capabilities and position Malaysia as a significant player in the global critical minerals supply chain.

This approach aligns with the New Industrial Master Plan 2030, which seeks to bolster industrial capabilities and attract high-value investments. Johari cited Australian-owned Lynas Malaysia Sdn Bhd, which has operated a rare earth processing facility in Pahang since 2012. The company invested RM3.8 billion in Malaysia between 2008 and 2025 and contributed an estimated RM4.81 billion to the country's GDP between 2013 and 2021, according to company data.

Johari addressed concerns about Lynas's four-year rare earth supply arrangement with the United States Department of Defense, explaining that it was a commercial arrangement managed by Lynas LLC USA for research and development in the permanent magnet manufacturing industry.