Government announces no intention for the establishment of a national rare earth corporation.

The Malaysian Ministry of Science, Technology, and Innovation has made a decision regarding the rare earth elements (REE) industry. During the debate on the 13th Malaysia Plan in the Dewan Negara, Deputy Minister Huang Tiong Sii announced the proposed establishment of a national corporation named the "Rare Earth Corporation Malaysia."

The proposed corporation, wholly owned by the federal government, is intended to work closely with state governments. According to Huang, this centralised national entity is expected to provide stronger regulatory oversight and boost investor confidence.

Opposition leader Hamzah Zainudin, who proposed the establishment of such a corporation last month, agrees. He believes that a centralised national entity would help combat illegal mining and attract investment in the critical minerals sector. He also suggested a fairer revenue-sharing model between the federal and state governments with the establishment of this corporation.

However, state governments view the proposal as an attempt to nationalise their natural resources. Robert Lau, a political analyst, described REE as "another golden goose" for the nation, with an estimated value of approximately RM1 trillion. The focus of the corporation is to tap into the rich mineral resources in Kelantan, Terengganu, and Kedah.

Despite the controversy, it is important to note that Putrajaya has no plans to enact new laws to govern the REE industry. The states will continue to manage their land and minerals under their respective state laws, as allowed by Putrajaya.

The decision was made after several rounds of engagements with state governments. Hamzah Zainudin thinks that a centralised national entity would help address the complexities of managing the REE industry across multiple states. He believes that this corporation will accelerate the development of Malaysia's REE industry, providing long-term benefits for the nation.

The Borneo Post reported Huang's statement, highlighting the potential for Malaysia to become a significant player in the global REE market. As the debate continues, it is clear that the establishment of the Rare Earth Corporation Malaysia could mark a significant step forward for Malaysia's REE industry.