KUALA LUMPUR, Feb. 6 (Xinhua) -- Malaysia is not bound to export its rare earth elements (REEs) to the United States and remains committed to developing its own domestic capabilities in the REE sector, Natural Resources and Environmental Sustainability Minister Arthur Joseph Kurup has said.
In explaining Malaysia's obligations under the Agreement on Reciprocal Trade (ART) with the United States on Thursday, Arthur told parliament that the agreement did not stipulate any exclusive commitments, supply obligations, or market preferences that would bind Malaysia to export REEs to any particular country.
"The Malaysian government also wishes to stress that REEs have never been offered as a concession or quid pro quo in any trade or tariff negotiations with the United States," he said.
He explained that Malaysia continues to maintain a ban on the export of raw REEs to ensure that the strategic resource is not exploited without value addition and to encourage the development of the entire domestic industry value chain, including processing, research and development, and domestic product manufacturing.
Malaysia maintains a ban on the export of raw REEs to boost its domestic processing industry and ensure value addition, with a specific moratorium in place for 2025-2027. This policy, which began in 2024, forces local processing rather than exporting raw materials.
"This policy was formulated with due consideration for the country's long-term interests, the division of jurisdiction between the federal government and state governments, and the need to ensure that the development of the REE industry is carried out in a sustainable and responsible manner," he said. ■
