Malaysia Reviews $96M Lynas-US Defense Deal Amid Palestine Stance Concerns

Published: Jul 22, 2026 18:10

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Malaysia is reviewing a supply agreement worth $96 million signed between Lynas Rare Earths and the US Department of Defense, after a parliamentary committee assessed whether the deal affects Malaysia’s stance in support of Palestine and its future rare earth policies. According to a previously issued statement, the Parliamentary Special Select Committee on International Relations and International Trade, chaired by Member of Parliament Wong Chen, convened on July 16 to discuss the role of the Australian company Lynas in the US defense supply chain. The committee heard submissions from government officials, non-governmental organizations, and senior executives of Lynas. The committee recommended that the government formulate a clearer foreign investment policy to protect Malaysia’s national interests and sovereignty, and clarify its position on this matter within two weeks. The committee said it called this meeting to examine and assess the impact of the supply agreement, which is allegedly affecting Malaysia’s long-standing stance in support of Palestine.

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