KUALA LUMPUR: Malaysia is poised to enhance its rare earths sector with technical support from China. Officials have revealed that during a recent visit by Chinese President Xi Jinping, discussions surrounding collaboration in rare earth mining and processing took centre stage.
Potential Collaboration with China
According to Johari Abdul Ghani, Malaysia’s Natural Resources and Environmental Sustainability Minister, China has expressed its willingness to assist in developing Malaysia’s capabilities. However, the cooperation is contingent on involving only state-linked companies.
“Considering that technology safeguarding is of great importance to China, he (Xi) requested that the cooperation only involve government-linked companies,” Johari stated.
Malaysia’s Strategic Position
- China holds a dominant position in the global rare earths market.
- Malaysia boasts approximately 16.1 million metric tons of rare earth deposits, according to a 2019 estimate.
- The country has implemented a ban on the export of raw rare earths, focusing instead on processed materials to prevent exploitation.
RCEP Summit Planned
In another significant development, Malaysian Prime Minister Anwar Ibrahim is set to convene a summit of the Regional Comprehensive Economic Partnership (RCEP) this October. This summit aims to encourage regional cooperation and showcase Asia’s leadership in fostering economic openness—a stark contrast to rising protectionist sentiments globally.
The RCEP, which comprises 15 economies across the Asia-Pacific, was designed to lower tariffs and foster trade among member nations.
Conclusion
As discussions unfold, the coming months could be pivotal for Malaysia’s rare earths ambitions and its role in the larger regional economic landscape.