At a press conference in Parliament today, opposition leader Hamzah Zainudin said the proposed corporation – wholly owned by the federal government – could work closely with state governments to tap into the country’s rich mineral resources, particularly in Kelantan, Terengganu, and Kedah.

Hamzah added that the move would not only attract investment in the critical minerals sector but also provide a fairer revenue-sharing model between the federal and state governments.

The Larut MP said a centralised national entity would provide stronger regulatory oversight, boost investor confidence, and help combat illegal mining.

“This should be a national corporation that collaborates with state governments to generate profits and accelerate rare earth mining,” he said.

“When the federal government works with the states, there must also be equality among all participating states.

“We need a clear national mechanism to ensure better coordination, fair profit-sharing, and long-term sustainability.”

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

As demand rises, they have become a globally strategic resource attracting interest from international investors.

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 US.