KUALA LUMPUR: Economy Minister Rafizi Ramli has underscored the importance of Malaysia's east coast region in becoming a hub for large-scale industries and rare earth elements (REE).
Rafizi, speaking at the East Coast Economic Region Development Council (ECERDC) forum today, identified REE as a largely untapped resource with immense potential for economic growth over the next 10-15 years.
He said energy transition plans must be executed as a long-term strategy.
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He added that embracing energy transition is not simply about what the global dictates but is about building resilience and sustainability of our future.
Recognising the challenges within the industry, Rafizi said although Malaysia and its Asean counterparts have abundant REE deposits, the region lacks a fully developed value chain for downstream processing.
He warned the risks of inaction:
"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."
To counter this, the government plans to develop Malaysia's REE industry by establishing two processing plants within three years.
Rafizi emphasisrd the importance of investor confidence:
"Investors need to know that this is our plan to begin processing in three years because they need a lot of time to reconfigure their business plans.
"Memorandums of understanding (MoUs) have already been signed with South Korea. Japan is following soon and the MoU with Singapore is expected to be signed in two weeks," he added.
The ministry is also collaborating with state governments and the East Coast Rail Link to create a 10-15 year development plan for the region with the priorities of clean energy initiatives and development of carbon capture, utilisation and storage (CCUS) technology.
Rafizi said by aligning energy transition projects like CCUS with regional development, the government seeks to foster an inclusive and cohesive economic landscape.
The vision reflects a strategic shift to bolster Malaysia's position in clean energy and rare earth industries while ensuring equitable growth across the country.