KUALA LUMPUR: The Federal Government must maintain its ban on raw rare earth element (REE) exports until Malaysia establishes a robust domestic processing value chain, a civil society group urged.
Persatuan Pengguna Luar Bandar dan Ekologi Malaysia (RURAL) secretary-general MS Anuar Mahmod said lifting the 2024 ban prematurely would damage national economic interests, allowing foreign markets to capture processing profits while Malaysia absorbs environmental costs.
"Malaysia possesses significant REE reserves, but we should not reverse a strategic policy before building downstream industries, local processing capabilities, and high-skilled jobs," Anuar said in a statement on Monday (Aug 3).
The statement follows reports that Putrajaya is considering relaxing the export ban.
Anuar warned that expanding mining without strict safeguards threatens ecologically sensitive regions, noting significant REE deposits lie within Permanent Forest Reserves. He urged the government to legally designate forest reserves, water catchments, biodiversity zones, and Indigenous lands as permanent "No-Go Zones" for mining.
To enforce this, RURAL called for statutory amendments to the Environmental Quality Act 1974, National Forestry Act 1984, and Town and Country Planning Act 1976. The group also proposed establishing a public National No-Go Zone Registry and expanding Ecological Fiscal Transfer (EFT) funding to compensate states for forest conservation.
Anuar stressed that any policy revision must undergo public consultation involving state governments, geologists, Indigenous groups, and environmental experts.
"Decisions involving strategic national resources must be guided by science and long-term national interest, not short-term market pressures," he said.
