Kuala lumpur: Malaysia's exports of rare earth elements (REE) are not confined to the United States despite the Malaysia-US Reciprocal Trade Agreement, according to Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup. Arthur clarified that the agreement does not impose any exclusive commitments, supply obligations, or market preferences that would limit Malaysia's REE exports to any specific nation.
According to BERNAMA News Agency, Arthur emphasized that REE has never been used as a bargaining chip in trade or tariff negotiations with the US. He made these remarks while concluding the debate on the motion of thanks for the Royal Address for his ministry in the Dewan Rakyat. Malaysia continues to uphold a ban on the export of raw REE to prevent exploitation without value addition and to support domestic industry development, including processing, research, and product manufacturing.
Arthur highlighted that the policy aligns with national interests, jurisdictional divisions between the Federal and state governments, and the sustainable development of the REE industry. In response to a query by Fathul Huzir Ayob (PN-Gerik) about potential new REE mines, Arthur noted that Malaysia's REE industry is still in its nascent stages, lacking the necessary expertise and technology for full resource utilization.
Arthur added that the absence of processing plants for high-value REE extraction from local sources hampers industry growth. While the Federal Government sets broad policies for the REE industry, specific mining permits fall under state jurisdiction, which dictates permissible mining locations.
Arthur also addressed the ongoing National Groundwater Resources Mapping and Assessment Project, which is being carried out in states such as Kedah, Melaka, Sabah, and Kelantan. The Kedah project was completed in 2025, while Melaka's project is underway and expected to finish this year. Projects in Sabah and Kelantan are in early stages, with completion anticipated in 2028 and 2029, respectively.
The National Groundwater Resources Mapping and Assessment Project aims to assess groundwater potential and identify areas for development to counter the impacts of global climate change that could affect Malaysia in the future. Future mapping projects in other states will proceed in phases, contingent on funding approvals under the Rolling Plan of the 13th Malaysia Plan.