KUALA LUMPUR, Dec 8 — Companies involved in midstream and downstream production activities of rare earth elements (REE) are eligible to be considered for incentives under the Promotion of Investments Act 1986, namely Pioneer Status and Investment Tax Allowance.
The Investment, Trade, and Industry Ministry (Miti) said companies that conduct high-technology activities, as well as small and medium-sized enterprises (SMEs), may also be eligible for special incentives under the same Act.
“These incentives aim to encourage the development of high-value-added activities to strengthen Malaysia’s position as a global and regional REE processing hub,” it said in a written reply to Dewan Negara published on the Parliament website today.
Miti was responding to Senator Datuk Shamsuddin Abd Ghaffar's query on its efforts to attract strategic investments to develop the REE processing industry, particularly in Perak, and on measures to ensure that the value added to these materials is retained within the country rather than being exported merely as raw materials.
It added that Malaysia is also actively exploring cooperation opportunities with interested countries that possess the latest upstream-to-downstream REE technologies.
“Cooperation between the government and existing companies has created high-skilled job opportunities for local citizens and, in turn, promises higher income.
“Such technology sharing and the development of local vendors are among the key requirements emphasised by Miti in establishing any form of collaboration with foreign expertise,” said the ministry.
The government’s objective is to elevate Malaysia from being solely a producer of raw materials to a major player in downstream production, such as Malaysian-made super magnets.
“Miti is of the view that the development of the local REE industry is important and aligned with the implementation of national policies, particularly the New Industrial Master Plan 2030 (NIMP 2030) and the National Advanced Materials Technology Roadmap 2021–2030 (NAMTR 2021-2030).
“A local mineral downstream industry that is viable and holistic will support the implementation of action plans under NIMP 2030, especially in achieving Mission One: Advancing Economic Complexity and Mission Three: Push for Net Zero,” it said.
