KUALA LUMPUR: The Malaysian government announced it has no plans to establish a new regulatory entity for the rare earth element (REE) industry, citing the adequacy of the current legal framework and the Federal Constitution. Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad stated that the development and regulation of the mineral material fall under the jurisdiction of state governments.
According to BERNAMA News Agency, Minister Nik Nazmi emphasized the government’s encouragement for local industries to become competitive in the REE market, spanning from upstream to downstream activities. The aim is to reduce reliance on foreign countries in this strategic sector, which is integral to international geopolitical competition. Speaking at the Dewan Negara during the winding up of the Supply Bill 2025 for his ministry, Nik Nazmi noted that a special task force has been created to address issues and set the direction for the industry’s development.
Addressing a separate issue, Ni
k Nazmi commented on the proposal for the federal government to mediate in the Kedah state government’s claim against Penang over the conservation costs of the Ulu Muda Kedah forest. He stressed the need for a holistic approach, given that river basins often cross state borders. He mentioned the lack of legal provisions for joint river basin management in Malaysia, unlike Australia, where such measures are legislated. The minister called for further discussions to find a mutually beneficial solution for water supply management between the states.
In related news, Deputy Minister of Housing and Local Government Datuk Aiman Athirah Sabu revealed that 31 out of 155 local authorities have implemented a policy allocating one percent of public service employment opportunities to Persons with Disabilities (PwD). This initiative has resulted in the appointment of 18 PwDs as council members and 146 PwDs as employees across various capacities within local authorities. The government supports these efforts to foster an
inclusive and equitable public service environment.