MALAYSIA is actively using its rare earth element (REE) deposits as a tool for strategic diplomacy, aiming to mitigate the impact of global geopolitical uncertainties on trade and industrial growth, Deputy Investment, Trade and Industry Minister Liew Chin Tong told Parliament on Wednesday.
Responding to a question from Datuk Indera Mohd Shahar Abdullah (BN–Paya Besar, Liew said the government continues to engage in strategic partnerships with countries that possess advanced technologies and expertise in REE processing.
“While Malaysia is known to have REE deposits, the country currently lacks the necessary expertise and technological capability to process these resources. Therefore, developing local R&D in REE technology must be expedited to allow Malaysia to benefit from high-tech product manufacturing using its own raw materials,” he said.
These efforts include high-level government meetings, courtesy visits, trade and investment missions, free trade agreement negotiations, and bilateral discussions with key trading partners.
A Special Task Force has also been established to oversee the national direction of REE industry development, covering investment, technology, and incentives linked to research, development, commercialisation, and innovation (RDC&I).
MITI chairs the Technical Committee on Midstream and Downstream Development of the REE Industry, and remains committed to attracting more investors across the REE supply chain.
He stressed that REE development aligns with national policies, especially the New Industrial Master Plan 2030 (NIMP2030) and the National Advanced Materials Technology Roadmap 2021–2030 (NAMTR).
These strategies collectively support the government’s push to advance high-tech industries and strengthen R&D, particularly in priority sectors.
“Under NIMP2030, the mineral industry is identified as a key sector for high-tech industrial growth, contributing directly to Mission 1: Advancing Economic Complexity and Mission 3: Push for Net Zero,” Liew added.
The government remains committed to optimising the processing of REE deposits as a means of creating new, strategic sources of national wealth. - August 27, 2025
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