At a meeting of the national economic action council today, Anwar said there should be collaborations with international experts aimed at developing the entire industry chain within the country.

“Strengthening enforcement is crucial to prevent resource exploitation, which could reduce government revenues and impede the growth of the rare earths elements industry,” he said, Bernama reported.

In a social media post later, he said the government was reviewing the New Deal for Business initiative to position Malaysia as a preferred business destination. “It was a vital step given our current standing in the global competitiveness index,” he said.

Rare earth elements are valuable for use in high technology products such as smart phones, computer disk drives, digital cameras, computer monitors and catalytic converters in cars.

China accounts for about 80% of the world’s supply of rare earths.

Mining and processing of rare earth elements have been controversial in Malaysia since the Australian firm Lynas set up the world’s largest single rare earths processing plant in Gebeng, Pahang, for export to Asia, Europe and the United States.

In the past former Bentong MP Wong Tack and former Kuantan MP Fuziah Salleh had been vocal against Lynas on environmental grounds.

Last month, the Lynas chief executive, Amanda Lacaze, said the company was “looking at the future with great enthusiasm” because Anwar’s government “truly understands the importance of rare earth in the 21st century”.

Malaysia has valuable deposits of rare-earth minerals in Terengganu, Kelantan, Pahang, Perak, and Kedah, according to the Malaysian industrial development authority.

Last year, environmentalists cautioned the Kelantan government that mining rare earths elements would disrupt the flora and fauna found in the state’s forests.