Breaking News: Malaysia Opts Against Single Entity Oversight for Rare Earth Industry, Denies US Supply Rumors

Published: Aug 20, 2025 10:09

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[Breaking News: Malaysia Rejects Single Entity Oversight for Rare Earth Industry] The Ministry of Natural Resources and Environmental Sustainability (NRES) is not planning to establish a central body to regulate the rare earth elements (REE) industry in Malaysia. This decision is primarily based on constitutional provisions and opposition from state governments. Acting Minister Dato' Sri Johari Abdul Ghani explained that several state governments expressed concerns during meetings, viewing the proposal as an attempt to nationalize state-owned mineral resources. Furthermore, Dato' Sri Johari refuted claims that Malaysia proposed to supply rare earth elements exclusively to the US as a bargaining chip in trade tariff negotiations, stating that the Minister of Investment, Trade, and Industry had already clarified that no such commitments were made regarding REE supplies in the tariff talks. When discussing negotiations with China, he noted that the current focus is on enhancing bilateral cooperation and promoting the development of Malaysia's rare earth industry across the entire value chain, including the construction of processing plants. He also mentioned that China remains cautious about whether Malaysian rare earth can meet the demands of its downstream industries.

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