KUALA LUMPUR: The United States and Malaysia aim to strengthen cooperation in developing critical minerals supply chain sectors between the two countries via the signing of a new memorandum of understanding (MOU).
Known as the “MOU between the Government of the US and Malaysia Concerning Cooperation to Diversify Global Critical Minerals Supply Chains and Promote Investments”, the agreement also aims to promote trade and investment between the two countries.
According to the MOU, published on the White House’s website, it aims to foster investment and trade between the United States and Malaysia in critical mineral resource exploration, extraction and processing, refining, manufacturing, and recycling and recovery.
It also aims to facilitate the transition into efficient and secure markets for critical minerals and rare earths to enhance the security and prosperity of supply chains for these resources in the United States and Malaysia.
The MOU also emphasised the importance of promoting extraction, processing, and recycling opportunities that adhere to the highest international standards.
At the same time, the United States was expected to share information, knowledge and technical expertise on international best practices, increase the competitiveness of Malaysia’s critical minerals sector and coordinate support for bilateral projects that advance secure, resilient and responsible critical mineral supply chains.
“Each participant may determine if a project is suitable for investment.
“Participants will work in good faith to prioritise investments from the US in critical minerals assets that may be sold in Malaysia or by a company headquartered in or incorporated in Malaysia,” the MOU read.
It also stated that the MOU commences upon signature by both participants and that it is not legally binding or affects any existing agreements between the participants.
“Either participant may discontinue cooperation under this MOU at any time, and shall provide written notice of such discontinuance to the other participant via diplomatic note.
“Discontinuation is not intended to affect the implementation of ongoing activities facilitated under this MOU prior to discontinuation,” it read.
The MOU was signed by US President Donald Trump and Prime Minister Datuk Seri Anwar Ibrahim at the sidelines of the 47th Asean Summit and Related Summits on Sunday (Oct 26).
