Kuala Lumpur: Malaysia is positioning itself to become a key player in the rare earth elements (REE) value chain, amid a shifting geopolitical landscape and the ongoing trade war between the United States and China. Ministry of Science, Technology and Innovation (MOSTI) Minister Chang Lih Kang stated there is growing interest from both Western and Chinese investors to collaborate with Malaysia in the sector, underscoring the country’s strategic value and potential in rare earth processing.

According to BERNAMA News Agency, Chang mentioned that international stakeholders, including President Xi Jinping of China, have expressed a keen interest in supporting Malaysia’s development of processing technology for rare earth elements. Chang highlighted that developments in this area are progressing as anticipated, reflecting both the pace and direction desired by Malaysia.

To further facilitate industry development, Chang revealed that the government is in the process of amending the Atomic Energy Licensing Act 1984 (Act 304). The current legislation limits industrial licenses to a three-year period, which Chang described as insufficient to support the sustainable growth of the REE industry. The proposed amendments, particularly concerning Section 16(6) of the Act, aim to extend the licensing period and are expected to be tabled this year.

Chang also emphasized the importance of accelerating development in Malaysia’s midstream and upstream REE sectors. He stated that the window of opportunity for Malaysia is limited, making it crucial for the nation to maximize its current resources and capabilities. Earlier in his talk, Chang revealed that Malaysia possesses an estimated 16 million tonnes of unprocessed REE deposits, valued at over RM800 billion.