KUALA LUMPUR: Developments involving the rare earth elements (REE) industry must provide tangible, broad-based benefits to local communities, says Deputy Natural Resources and Environmental Sustainability Minister Syed Ibrahim Syed Noh.
He said the entire value chain must encompass both upstream and downstream activities, so that producing states are not merely used as mining sites.
“They must enjoy economic benefits, attract investment opportunities and foster the growth of supporting industries.
“We must ensure the focus is not solely on exports but on building a comprehensive ecosystem,” he said during Question Time in the Dewan Rakyat on Monday (Feb 9).
He added that state governments hold authority over licensing, enforcement and revenue collection related to rare earth elements, while the federal government, through the Minerals and Geoscience Department, provides only technical support and national guidelines.
“This approach ensures there is no overlap or conflict between the two levels of government, while respecting the separation of powers between the federal and state administrations,” he said.
He also said the National Minerals Council serves as the main platform to coordinate policies, strategic direction and governance of the minerals sector between the federal and state governments.
This mechanism, he said, ensures that any REE-related developments are discussed inclusively among all relevant stakeholders.
“The industry can develop more effectively through close cooperation between the federal and state governments, guided by the principles of mutual respect, good governance and sustainability, in line with the spirit of federalism,” he said.
Syed Ibrahim was responding to a question from Afnan Hamimi Taib Azamudden (PN–Alor Setar), who asked about strategic engagements between the federal and state governments to ensure the REE industry is developed in line with the spirit of federalism.
