Aug 20 — Investors eyeing Malaysia’s rare earth elements (REE) industry must be prepared to share their technology and commit to the entire value chain if they wish to secure a foothold in the country Trade and Industry Minister Datuk Seri Johari Abdul Ghani
The minister said that Malaysia is moving away from the model of merely exporting raw recosystem that allows the nation to capture maximum value from its critical mineral deposits
“For us to obtain the full benefits from rare earths, we must establish activities not only in the upstream sector, where we export, but also across the upstream, midstream and downstream sectors,” Johari said
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Speaking to reporters after the ‘Invest in Perak Day’ programme at Hotel Casuarina Meru today, Johari said that REEs are increasingly vital for global technological advancement, making it imperative for Malaysia to maximize the economic opportunities presented by these re
The minister warned that companies seeking to invest in the sector must demonstrate a tangible commitment to the country. This includes bringing in proprietary technology and actively sharing knowledge with local stakeholders
“They must bring their technology, share it with us, and then be directly involved from the upstream through to the midstream and downstream sectors,” he said
Johari stated that Malaysia will prioritise investors who commit to technology transfer over those interested solely in extraction and export. He also signaled a cautious approach toward firms that refuse to share their expertise
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“If an investor comes and wants to be involved in the upstream sector, but does not want to share their technology, then we will have to think twice or even three times before proceeding,” he added
The overarching goal is to build a domestic industry capable of processing and adding value to minerals before they leave Malaysian shores
To support this, Johari noted that the government is working to establish robust regulations and legal safeguards to protect investors’ intellectual property, patents, and trade secrets, ensuring that technology-sharing agreements are enforceable
Looking at the regional landscape, Johari suggested that Perak’s early efforts in developing its REE potential could serve as a blueprint for other states with similar deposits, including Johor and Negeri Sembilan
He stressed that the true value of Malaysia’s REE re technology and a skilled workforce. Ultimately, the scale of further development will depend on attracting long-term partners willing to invest beyond the upstream stage
