Opposition proposes national entity to manage RM800b rare earth wealth, prevent illegal mining losses

KUALA LUMPUR, Oct 12 — The opposition has suggested the creation of a national entity to oversee rare earth elements (REE) as a vital resource for Malaysia's future, beyond its petroleum economy. Opposition Leader Datuk Seri Hamzah Zainudin highlighted the necessity of this entity to prevent the sale of the $800 billion worth of REE without added value, or the loss of these materials due to illegal mining.

Addressing the Supply (Budget) Bill 2027 in the Dewan Rakyat, he proposed Reenas to handle REE management from exploration to downstream product processing. Hamzah also emphasized Malaysia's need to transition from merely supplying electricity to foreign data centers to becoming an Asean energy powerhouse, emphasizing the export of clean energy, regional grid infrastructure ownership, and energy technology development.

He urged the government to consider nuclear power reactors to ensure a stable electricity supply, with a clear roadmap and timeline for implementation. In the tech sector, Hamzah suggested the establishment of a National Sovereign Data Centre and an Artificial Intelligence (AI) Governance Bill to protect the country from data breaches, stressing that sensitive government data should be stored locally with encryption keys held by local agencies.

He welcomed the continuation of social assistance programs but proposed a Micro, Small and Medium Enterprises (MSME) Incentive Fund under the Social Security Organisation (Perkeso) and corporate tax relief for employers who increase workers' wages. Hamzah acknowledged the challenges of Malaysia's new RM2,000 minimum wage, proposing a shared cost transition period for MSMEs until company productivity supports the new wage level.