THE Government will expedite the development of its rare earth elements (REE) industry in close collaboration with state governments, as part of a broader drive to strengthen green economic growth and sustainability under the 13th Malaysia Plan (RMK13).
Presenting the five-year plan in Parliament on Thursday, Prime Minister Datuk Seri Anwar Ibrahim said the Government would prioritise the strengthening of the REE value chain and local technological capabilities in mining, refining and separation.
“Focus will be placed on developing local capacity through strategic international partnerships. The domestic supply of REE will be prioritised to support midstream and downstream industries,” he said.
He added that this would be supported by “talent development, modern infrastructure, comprehensive incentives, and more precise resource mapping.”
The green economy, he stressed, would remain a cornerstone of Malaysia’s development model, with a particular focus on carbon market facilitation, including the implementation of the National Carbon Market Policy, Emissions Trading Scheme (ETS), and incentives for carbon credit projects.
“Carbon capture, utilisation and storage (CCUS) will also be advanced as part of green investment and financing taxonomies,” said Anwar. “A pilot carbon capture project in the iron and steel sector will be launched in Kemaman, Terengganu.”
Access to green financing, he added, will be expanded to support decarbonisation efforts across key national industries.
In addition, Malaysia will increase the utilisation of agricultural waste to drive the circular economy and create new value chains. This will be complemented by a strategic expansion of waste-to-energy plants, developed in partnership with the private sector.
“To reduce reliance on landfills, waste-to-energy infrastructure will be extended,” said Anwar. “At the same time, biodiesel blending depots in Sandakan, Lahad Datu and Bintulu will be upgraded to support the use of low-carbon alternative fuels and help cut greenhouse gas emissions.”
In the water sector, the Government will continue to implement the 2040 Water Sector Transformation Plan (AIR2040), aimed at turning the water industry into a dynamic and sustainable economic driver.
“Priority will be given to developing and innovating local water technologies through strategic collaboration in research, development, commercialisation and innovation (RDCI),” said Anwar.
Under AIR2040, efforts will also continue to reduce raw water consumption and non-revenue water (NRW), alongside the sustainable expansion of water reuse technologies.
“These steps align with our goal to strengthen the resilience and sustainability of water supply and wastewater service providers, ensuring long-term viability of national water services,” he added.
RMK13 charts Malaysia’s development path from 2026 to 2030 with a strong emphasis on sustainable industrial growth, energy transition, and environmental resilience. - July 31, 2025
