Deputy Minister of Investment, Trade and Industry Liew Chin Tong pointed out that the federal and state governments must seek new ways of cooperation to jointly and coherently develop the rare earth elements industry.
He said that according to the framework of the Federal Constitution 1957/1963, natural resources belong to the state governments, and therefore, stronger coordination between the federal and state governments is needed.
He believes that states should be encouraged to support industrialization rather than focusing only on extraction, while government-linked investment companies and government-linked companies must also be prepared to invest.
"It should be noted that China has become the largest rare earth refiner, while US companies have been closing down over the past few decades, as rare earth itself is not a highly profitable business. Therefore, building a complete supply chain is key."
He said this while delivering a keynote speech at the "From Mines to Magnets" policy brief launch organized by the Institute of Strategic and International Studies (ISIS) Malaysia.
Liew Chin Tong mentioned that Malaysia is determined to develop the rare earth industry comprehensively from upstream to downstream, and the government needs to play a leading role through industrial policy and international cooperation.
He said that for the government to effectively intervene, several measures must be taken, including building institutional and regulatory capacity to manage the sector, ensuring the industry's sustainable development, and meeting all safety requirements.
He said the government will provide appropriate incentives and capital to promote the industry's industrialization.
"It is essential to keep in mind the geopolitical and geoeconomic challenges of the industry and to build strategic international cooperation. However, we must remember that repeating past practices will not yield different results."
"A strong Malaysian rare earth industry will have global impact, and may even make Malaysia a more significant middle power, but we need to move forward more systematically."