KUALA LUMPUR: Clause 5.2.3 of the Malaysia-US trade agreement, which sets up a joint mechanism to assess foreign investments in rare earths and critical minerals, does not directly affect state revenues, including royalties or land premiums.
Natural Resources and Environmental Sustainability (NRES) deputy minister Syed Ibrahim Syed Noh clarified that the clause does not affect state control over minerals, which remain under state jurisdiction according to the Federal Constitution’s Ninth Schedule, List II.
