BANGI: The Perikatan Nasional-led state governments (SG4) will look into the downstream processing of rare earth elements (REE) as a source of income.
Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar said the potential revenue from processing raw elements into their pure form, such as cadmium, is substantial.
"REE in their raw form have a very low value. When we process and convert them into more advanced forms, their value multiplies, especially when they become pure elements like cadmium and others.
"The price can increase by hundreds, even up to a thousand times. Therefore, we will certainly strive to make the processing of these elements a priority.
"Secondly, the use of these materials for planned industries, such as super magnets, EVs (electric vehicles), and so on, would be greatly beneficial. If downstream companies can enter and set up their factories where these raw materials and elements are found, it would be even better," he told reporters after an SG4 conference here.
Earlier, SG4 executive secretary Datuk Seri Takiyuddin Hassan said the four state governments, namely Kedah, Terengganu, Kelantan and Perlis, have established a company, SG4 Group Sdn Bhd, to drive development in their states.
He said each state will hold a 25 per cent share amounting to RM250,000 in the company, which was registered a few months ago.
The five focus areas include infrastructure and logistics; trade investment and industries; agriculture and food security; education and nation-building; and, new revenue streams.
Takiyuddin also cited REE and green technology as potential business opportunities.
Samsuri said, aside from government-linked companies, foreign companies have also submitted investment applications related to REE.
However, he said these were still in the early stages, such as in the exploration licences to process and to determine whether the relevant areas chosen have the resources.
"The data we receive from the Minerals and Geoscience Department is general. When we want to explore, say, the first 10ha, we need to first verify whether the designated plots actually have these resources.
"This is the stage we're at now, with not only GLC companies but also several other companies keen to invest in the states," he said.
Samsuri cited some countries that are keen to invest in the states in various sectors, including South Korea, Japan and China, but refused to reveal the potential investment amounts.
The sectors include heavy industries, the agro-industry, and agriculture, among others.
"The potential of the SG4 states is immense, encompassing new development areas such as natural resources and critical minerals, agriculture and food security, green technology and carbon credits, trade and eco-tourism, the halal industry, Syariah-compliant financial technology (fintech), and education.
"The development of the West Coast states, which are approaching saturation and facing resource constraints, creates opportunities for the SG4 states, which still have larger industrial zones and more cost-effective options to attract high-potential investments," he said.
He added that matters such as the targets of the states in the next few years will be detailed out in a workshop to be held later today.
Also present were the leaders of the other three states: Datuk Seri Muhammad Sanusi Md Nor (Kedah), Datuk Nassuruddin Daud (Kelantan), and Mohd Shukri Ramli (Perlis).