He said Khazanah Nasional Bhd is already engaging with Chinese companies to explore opportunities in downstream rare earth development, Bernama reported.

“We want to invite companies to come and invest here, and we want to get more Malaysians involved, not just in terms of the supply chain, but also in terms of economic interests, meaning having some equity and shareholding as well in this venture,” he was quoted as saying.

Tengku Zafrul said Malaysia’s ban on exporting unprocessed rare earths, implemented to prevent the loss of resources, was intended to encourage companies to set up operations locally.

However, he said, his ministry had yet to receive any proposal to set up a new rare earths processing facility in the country.

He also clarified that Australia’s Lynas Rare Earths, which operates a processing plant in Pahang, would continue exporting to markets of its choice.

“We welcome all because, at the end of the day, Malaysia continues to remain neutral,” he said.

The nationwide moratorium on raw rare earth exports, enforced since Jan 1, 2024, aims at promoting domestic processing and downstream industries, capturing higher economic value, creating jobs, and facilitating technology transfer.