Categories: EconomyNews

East Coast could be rare earth hub in the future, says Rafizi

by SHAUQI WAHAB

ECONOMY Minister Rafizi Ramli said the East Coast region of Malaysia could play a pivotal role in hosting large-scale industries and becoming a hub for rare earth elements (REE).

Recognising REE as an untapped resource, he said it offers immense potential for economic growth over the next 10 to 15 years.

However, Rafizi said while Malaysia and its ASEAN counterparts have rich REE deposits, the region lacks a developed value chain for downstream processing, which the government aims to address through strategic partnerships and infrastructure investments.

“If we don’t do that, then the materials will be exported to China at a cheap rate, and our REE will be depleted quickly, where we will lose investment opportunities,” he said during his keynote speech in a forum of the East Coast Economic Region Development Council (ECERDC).

Hence, Rafizi added that the government wants to focus on developing Malaysia’s own REE industry with a plan to establish two processing plants within three years.

The Ministry of Economy is collaborating with state governments and the East Coast Rail Link (ECR) to develop a 10- to 15-year growth plan for the region.

Among the initiatives in the government’s effort for the region is in line with the switch to clean energy, as well as the development of carbon capture, utilisation and storage (CCUS) technology.

He said by aligning energy transition projects like CCUS with regional development, the government seeks to create a cohesive and inclusive economic landscape.

With abundant rare minerals and advanced storage facilities, he believes that Malaysia is poised to become a trusted partner for international companies seeking resilient supply chains.

“Investors need to know that it is our plan to begin processing in three years because they need a lot of time to reconfigure their business plans,” he said, adding that memoranda of understanding (MOUs) have already been signed with Korea and Japan, with a similar agreement anticipated with Singapore, aiming to position Malaysia as a key player in the international carbon storage market.

However, he stated that balanced regional development remains a priority, with the government focusing on leveraging the East Coast for new economic opportunities while maintaining growth clusters on the West Coast.

Zukri

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