KUALA LUMPUR (March 12): The government is formulating a comprehensive strategy that includes exploring potential incentives to attract global industry players in the development of rare earth element (REE) resources within the country, according to Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad.

Acknowledging the involvement of countries like Vietnam and Myanmar in the REE industry, in areas encompassing mining and processing plants, Nik Nazmi expressed Malaysia's interest in venturing into the REE sector.

"There are a few global industry players who have expressed interest in operating in Malaysia, and the government is currently exploring potential incentives to encourage their presence here," Nik Nazmi said in response to a question from Tuan Ibrahim Tuan Man (Perikatan Nasional-Kubang Kerian) during ministerial question time in the Dewan Rakyat on Tuesday.

Responding to a supplementary question from Howard Lee Chuan How (Pakatan Harapan-Ipoh Timor), Nik Nazmi reiterated Malaysia's open stance in welcoming industry players from around the world to develop REE resources within the country.

"We already have Lynas, the second-largest rare earth processing plant globally after China, in Kuantan, and we are looking into potential improvements from a policy perspective," he added.

Nik Nazmi emphasised that the moratorium on exporting non-radioactive rare earth element (NR-REE) raw materials had been in force since Jan 1, with evaluations scheduled every six months.

He noted that the ministry had received a request from a state government to reconsider the moratorium. However, during a Cabinet meeting on Feb 21, Prime Minister Datuk Seri Anwar Ibrahim emphasised that state governments must adhere to the existing policy.

"Therefore, on March 6, the ministry issued a reminder letter to the state government, urging compliance with the ongoing moratorium on NR-REE raw material exports," he said.

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