Malaysia seeks foreign partnerships to develop rare earth sector
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Minister of Investment, Trade and Industry Tengku Zafrul Aziz said Khazanah is engaging with Chinese companies to explore opportunities in downstream rare earth development.
PHOTO: REUTERS
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KUALA LUMPUR - Malaysia is open to foreign companies establishing joint ventures with local firms to develop rare earths in the country, state media reported on Oct 22, citing the trade minister.
The South-east Asian country has some 16.1 million tonnes of rare earth deposits, according to government estimates, but lacks the technology to mine and process them.
Malaysia is aiming to develop midstream processing capabilities in a sector dominated by China, which earlier in October tightened its restrictions on rare earth exports
Reuters reported exclusively earlier in October that the Malaysian government was in talks with China on rare earths processing, saying its sovereign wealth fund Khazanah Nasional would partner with a Chinese firm to build a refinery in Malaysia.
In his 2026 government budget speech to Parliament on Oct 10, Malaysian Prime Minister Anwar Ibrahim said RM10 million (S$3.06 million) would be allocated to continue the mapping of rare earth resources, with Khazanah looking to develop downstream activities in the sector through international collaborations.
Malaysia’s Minister of Investment, Trade and Industry Tengku Zafrul Aziz said Khazanah is engaging with Chinese companies to explore opportunities in downstream rare earth development, state news agency Bernama reported on Oct 22.
“We want to invite companies to come and invest here, and we want to get more Malaysians involved, not just in terms of the supply chain but also in terms of economic interests, meaning having some equity and shareholding as well in this venture,” he was quoted as saying.
Malaysia’s ban on companies from exporting raw rare earths to prevent the loss of resources will effectively compel firms to set up operations within its borders, Datuk Seri Zafrul added.
However, he said the Trade Ministry had yet to receive proposals to set up new processing facilities in the country.
Mr Zafrul also said the government will not prevent Australia’s Lynas Rare Earths, which has a processing plant in Malaysia’s central state of Pahang, from exporting to markets of its choice. REUTERS
