MALAYSIA’S rare earth elements industry is being developed through a strategic partnership between the federal and state governments, underpinned by respect for jurisdictional authority, good governance, and sustainability, Deputy Minister of Natural Resources and Environmental Sustainability Syed Ibrahim Syed Noh said.
Syed Ibrahim told the Dewan Rakyat that the federal government, through his ministry, maintains continuous bilateral discussions with state governments to steer the development of the REE sector.
These discussions are conducted under the National Minerals Council (MMN), which serves as the principal platform for aligning policy, governance, and industry direction between federal and state authorities.
“Through this mechanism, any policy or initiative related to REE development is discussed inclusively, taking into account the views and interests of state governments as the authorities over land and minerals,” he said in response to a question from Afnan Hamimi Taib Azamudden (PN-Alor Setar).
Highlighting the operational framework, Syed Ibrahim explained that the federal government, through the Department of Minerals and Geoscience (JMG), provides technical support, national guidelines, and standard operating procedures for REE mining.
State governments retain control over tenure approvals, licensing, enforcement, and revenue collection in accordance with their respective legal provisions.
“This approach ensures there is no overlapping of authority and respects the division of powers between the federal and state governments,” he said.
He added that the federal government also engages in bilateral consultations with states to ensure the REE industry is developed comprehensively across upstream, midstream, and downstream stages.
This ensures that producing states benefit not only as mining sites but also gain economic advantages, investment opportunities, and the growth of supporting industries.
“By doing so, states hosting REE operations are not merely extraction sites but active participants in the broader economic and industrial benefits of the sector,” Syed Ibrahim said, emphasising the inclusive and sustainable vision guiding Malaysia’s rare earth development strategy. - February 9, 2026
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