KUALA LUMPUR – Malaysia could attract investments of up to RM100 billion (S$33 billion) in the rare earth sector over the next 10 years, once the government makes clear how it intends to regulate the industry.
Speaking at the Malaysia Global Business Forum on Wednesday (July 10), Entrepreneurial Development Minister Mohd Redzuan Md Yusof said some investors were interested in the sector but were hesitant due to conflicting news about whether rare earth processing would be welcomed in the country.
“There has been some interest to invest in this country in the downstream sector by using the products from the rare earth. So there are inquiries but they made it clear they will only put in money once rare earth is regulated,” he said.
Australian firm Lynas, which has become a crucial global supplier of the metals amid the ongoing US-China trade war, has been operating an ore refining plant in Kuantan, Pahang, since 2012.
Environmental concerns meant it had initially faced losing its licence in September unless it shipped out 450,000 tonnes of waste material from the plant. However, in late May it was granted a reprieve by the Malaysian government and allowed to continue running while it works towards making its operations radiation-free in six years.
China controls over 70 per cent of the world’s production of rare earths and meets 80 per cent of US demand. In the face of possible supply threats, Lynas has become strategically important as the only major rare earth producer outside China, accounting for 12 per cent of global supply.
The highly sought-after minerals are used in high-tech electronics and military applications.
Not everyone in Malaysia’s administration shares Datuk Seri Redzuan’s support for the industry.
Lynas has faced sustained public protest in Malaysia for years, chiefly over concerns of radiation poisoning, and more recently contamination of the local water supply.
Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin and Deputy Minister in the Prime Minister’s Department Fuziah Salleh have maintained that licensing conditions still applied to Lynas and that it still has to ship out its waste.
In his keynote address at the forum, Mr Redzuan said local players should help the industry by explaining to the public that the minerals are not as dangerous as claimed.
He said the government already has policies in place to ensure scheduled waste from rare earth processing was properly disposed of, to protect the public’s health and the environment.
“The law is already in place. On the best practices, it is already there. We have crude oil refineries here and there are processes vetted by industry players.”
“They have to treat the waste. When treating crude oil, there’s a lot of toxic sludge and that is treated accordingly to best practices. So any investor who wants to participate in this industry must tell us how they will treat the waste.
“We have our own engineering practices to make sure that the waste treatment facility is constructed in accordance to best practices. This is done everywhere else in the world,” said Mr Redzuan.
The minister recounted how an American investor recently told him that Malaysia is strategically poised to take advantage of the US-China trade war, by providing rare earth products to the West.
“If we continue to champion rare earths, more will come,” he said.
He urged small and medium-sized enterprises (SMEs) to learn more about rare earths and train workers to handle the radioactive material. He said his ministry hopes for more investments on rare earth processing to increase the country’s exports and pad up its finances.
“The Malaysian government would like to see more investment in this sector… which in turn will create more jobs for young Malaysians,” said Mr Redzuan.
News appeared in The Straits Times JUL 10, 2019, 4:08 PM SGT https://www.straitstimes.com/asia/se-asia/malaysia-can-draw-up-to-s33b-in-rare-earths-investment-over-next-10-years-minister
Services
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
Upcoming Events
MGBF is hosting a networking session with Romania's global analyst, Radu Magdin, in Kuala Lumpur. Join the discussion on strategic shifts and conflict flash points that impact Malaysia’s international facing business.
Expanding on the Malaysian government's efforts to promote the country as a trade and investment destination of choice, MGBF will engage with the many industry leaders who announced multi-billion dollar commitments.
The global trend towards a sustainable future is driven by multiple forces. What does Malaysia have to do to achieve resilience at the corporate level while creating new business opportunities?
Special session: Cyberwarfare Waged on the Corporate Sector - Lessons from the Russia-Ukraine Crisis. Corporations are in a digital arms race that many don't realise. How does this relate to your organisation?
MGBF In The News
The classic knee-jerk reaction is to say, fire the coach, change the leadership of associations, and reduce the funding till they start performing better. This kind of negative reinforcement may work for kindergarten children, but we are dealing with high-performance adults – individuals much further along in their psychological and […]
Since its earliest tea plantations in 1929, Cameron Highlands has grown to become a key player in the agricultural landscape of Malaysia, producing 40 per cent of all vegetables grown. Despite Malaysia shifting its economic focus away from agriculture, the industry remains imperative for food security and the livelihoods of […]
Although at first glance the travel industry and the agricultural sector appear to have nothing in common, they actually share more than meets the eye. The economic benefits of tourism to the agricultural sector can be multiplied several times over. “Tourism brings the end consumers closer to the source, which […]
The Malaysia Global Business Forum (MGBF) recently held a high-level roundtable themed ‘Designing the Future of the Digital Economy’, attended by industry leaders and business associations. The guest of honour was Yang Berhormat Syerleena Abdul Rashid, the Member of Parliament (MP) for Bukit Bendera in Penang. The MP’s Special Session […]
The Malaysia Global Business Forum (MGBF) will be hosting a roundtable on ‘Designing the Future of the Digital Economy’ on 23 February 2023. It is the culmination of the first three MGBF Exclusive Roundtable Series titled ‘The Evolving Threat Matrix in the Digital Economy’ held throughout 2022. According to the […]
The Founding Chairman of the Malaysia Global Business Forum (MGBF), Nordin Abdullah, today spoke on Bernama TV’s leading English talk show, The Brief, hosted by Jessy Chahal, on the topic of a stable political reality and what that means for the Malaysian economy. Nordin said, “The first thing that it […]
More than 1,100 years ago, Muhammad ibn Musa al-Khwarizmi was developing the mathematical formulas that we know today as algorithms which now have become so intertwined with the business fortunes of global media giants and the very fabric of geopolitics. A series of recent high level international reports have revealed […]
KSK Land has been recognised by the Malaysia Global Business Forum (MGBF) for its role in attracting high net-worth individuals to Malaysia post-pandemic. The first challenge in investor attraction is “selling” the country. In the context of Asia, Malaysia is competing with some very established investment destinations. The second […]
Malaysia, in particular Kuala Lumpur, continues to position itself as a regional centre to do business, educate a family and enjoy a global lifestyle. One company, KSK Land, has taken the lead in positioning itself and the city of Kuala Lumpur as a property investment destination for the global citizen […]
The upcoming budget represents an opportunity to build resilience in the critical sectors that will form the backbone of the country’s future-facing economic ambitions. This however needs to be achieved in the context of managing the community sectors most impacted by COVID-19 over the past two years. The Keluarga Malaysia (Malaysian Family) […]
Malaysia Global Business Forum (MGBF) has moved to support the creative economy as the overall economy moves into a recovery phase following the COVID19 pandemic. As a step in the direction of normalcy, the MGBF has agreed to host the art exhibition “I Know You’re Somewhere So Far” by one […]
Congratulations to Datuk Seri Ismail Sabri Yaakob for taking up the mantle of the ninth prime minister of Malaysia. There is nothing normal about the situation; it could not have been scripted but it has kept the spectrum of media, mainstream and social, gripped. The first order of business for […]
In a stirring speech to the nation, President Joseph R. Biden, Jr. stamped his brand of leadership on the presidency, in his first act as the 46th president of the United State of America, it signaled several shifts. Perhaps the weather was foreboding with snow falling before the ceremony that […]
KUALA LUMPUR, 6 July 2022 – As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and the conflict between Russia and Ukraine, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. […]
KUALA LUMPUR, 23 June 2022 — Malaysia Global Business Forum (MGBF) ties up with scoutAsia to ensure that businesses are equipped with deeper regional insights. The past two years has seen a massive shift in the way businesses are conducted with digitisation, digitalisation and automation continuously being adopted to improve […]
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]
The Malaysia Global Business Forum (MGBF) has released a report following the roundtable on ‘Digital Resilience in the Corporate Sector’, which was recently held in Kuala Lumpur. In attendance as guest of honour was Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainul Abidin. The report recommended several critical development […]
Trade and investment delegations will trickle back over the next few months, but the second half of the year should see considerable return of business travellers. It was learnt that over 50 per cent of international business chambers and industry associations surveyed will consider sending exploratory teams to Malaysia during […]
