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Malaysia clarifies rare earth exports are not exclusive to US

Minister Arthur Kurup says REE exports are not limited to the US under any trade deal, reaffirming a ban on raw exports to boost domestic industry.

KUALA LUMPUR: Malaysia’s exports of rare earth elements are not exclusively tied to the United States.

Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup clarified that the Malaysia-US Reciprocal Trade Agreement contains no exclusive supply obligations.

“The Malaysian government also wishes to stress that REE has never been offered as a concession or quid pro quo in any trade or tariff negotiations with the United States,” he told the Dewan Rakyat.

He reiterated that Malaysia maintains a ban on exporting raw REE to encourage domestic value addition.

This policy aims to develop the full industry chain, including processing and manufacturing, in a sustainable manner.

Responding to a query, Arthur said the REE industry in Malaysia is still at an early stage.

He cited a lack of local expertise, technology, and processing plants as factors slowing industry development.

Mining permit matters, however, fall under the jurisdiction of state governments.

On a separate issue, Arthur provided updates on the National Groundwater Resources Mapping and Assessment Project.

The project is active in Kedah, Melaka, Sabah, and Kelantan, with completion dates ranging from 2025 to 2029.

Mapping in other states will proceed based on allocations under the 13th Malaysia Plan.

The project aims to assess groundwater potential to address future climate change impacts.

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