In a joint statement today, the menteris besar of Kelantan, Terengganu, Kedah and Perlis – the states known as the “SG4″– said they were committed to ensuring that the country’s mineral wealth was developed responsibly.
They said they supported Putrajaya’s aspiration to develop a comprehensive upstream, midstream and downstream ecosystem for the REE industry.
“However, any national plan must take into account the rights and position of the resource-owning states and cannot proceed without formal engagement with the respective state governments,” they said, adding that the four states collectively hold 70% of the country’s REE resources.
“SG4 is committed to ensuring that this natural wealth is managed responsibly, sustainably, and delivers maximum benefits to the people and future generations.”
The statement was issued by Kelantan menteri besar Nassuruddin Daud, Terengganu menteri besar Ahmad Samsuri Mokhtar, Kedah menteri besar Sanusi Nor, and Perlis menteri besar Shukri Ramli.
They also reaffirmed their readiness to work with the federal government, but under fair and respectful terms.
“Nevertheless, we urge that past experiences concerning petroleum royalty agreements not be repeated in the REE industry. The management and distribution of revenue must be founded on the principles of transparency, fairness, and equitable profit sharing.”
Yesterday, the Kelantan government urged Putrajaya to disclose full details of the Malaysia-US trade pact, expressing concerns it could affect the rights of states rich with REE deposits.
Deputy menteri besar Fadzli Hassan said states like Kelantan, Terengganu and Kedah, which were rich in REE resources, should have been consulted before the deal was signed as it directly affected their control over their natural resources.
He described the lack of consultation as a departure from the spirit of federalism, and called for greater transparency and state involvement in future policy decisions.
Malaysia and the US signed a reciprocal trade pact on Oct 26 during the 47th Asean Summit in Kuala Lumpur to expand market access and strengthen cooperation on critical minerals and energy.
Under the deal, Malaysia agreed to refrain from banning or limiting exports of critical minerals or REE to the US, and to work with American firms to boost production capacity.