Wan Fayhsal said if the conditions remained, it would be better to shut Lynas down and Malaysia need not be involved in rare earths processing.

“What we want is to relax the conditions so that we, too, can become players in this sector,” he said when debating the Supply Bill 2023 in the Dewan Rakyat today.

“I hope the processing sector can help the country become one of the major producers of rare earths for industrial use.”

Wan Fayhsal described the conditions as “a step backwards” for the government.

“We know that this rare earths problem is not just about science, but also geopolitics and the economy,” he said.

On Feb 14, Lynas’ operating licence in Malaysia was renewed for three years effective March 3, but the company will be prohibited from importing and processing rare earths after July 1.

Subsequently, science, technology and innovation minister Chang Lih Kang said the government may revoke the Australian company’s licence it if failed to comply with the conditions.