Tengku Zafrul says Malaysia will ban raw REE exports, ensuring local processing, jobs, and tech growth under US trade deal.
PETALING JAYA: Malaysia will maintain strict control over critical minerals and rare earth elements (REEs) in its trade with the United States, Minister of Investment, Trade and Industry (MITI) Datuk Seri Tengku Zafrul Abdul Aziz said in Parliament today.
Responding to claims that Malaysia is allowing the export of raw critical minerals to the US for “quick profits,” Tengku Zafrul stressed that the government continues to prohibit the export of unprocessed REEs to ensure the growth of local downstream industries.
“This means value addition must occur in Malaysia. High-skilled jobs and processing technology must be developed locally.
“We will not allow cheap raw materials to be exported without creating industrial value in Malaysia,” he said.
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Tengku Zafrul added that the government encourages foreign investment and technology partnerships for REE mining and processing, aiming to build a more integrated domestic industry.
The minister highlighted potential tripartite collaboration between Malaysia, the US, and Australia in developing Malaysia’s local REE sector.
“All strategic resource development will occur under Malaysian law, on Malaysian soil, and under Malaysia’s sovereignty, not at the whim of foreign investors,” he said.
The minister also clarified that Malaysia’s policy is not to block trade permanently, but to prevent the export of unprocessed raw materials.
Once processed domestically, high-value downstream products may be exported as part of the global supply chain, ensuring high-skilled employment, technology transfer, and industrial value remain in Malaysia.
Tengku Zafrul said that all investments under the Agreement on Reciprocal Trade (ART) will adhere to Malaysian laws and policies, safeguarding strategic sectors while creating new opportunities for Malaysian workers and domestic industries.
