Malaysia is making moves to deepen its rare earths industry, with Opposition leader Datuk Seri Hamzah Zainuddin calling on the country to diversify its resources beyond petroleum. He proposes a national rare earth entity modelled on Petroliam Nasional Bhd (PETRONAS).
The Malaysian Government has noted that the country’s rare earth resources could exceed RM800 billion ($281 billion). However, there has been no call to action to develop these resources quickly.
In the Budget 2027 meeting on 12 October, Hamzah said that the government should look at how to develop the country’s rare earth resources in order to generate broad national benefits.
This comes as part of a wider move for the government to create greater economic value and develop its domestic resources, as a way to guide economic growth and service the country’s rising debt.
Lynas Rare Earths (ASX:LYC) is most known for its rare earth operations in Malaysia. Its advanced materials plant supplies separated rare earth materials to customers worldwide, with concentrate and mixed rare earth carbonate from the company’s Mt Weld Project in Western Australia.
In line with this push toward rare earths, His Majesty Yang di-Pertuan Agong Sultan Ibrahim has acquired a 2.25% stake in Southern Alliance Mining (SGX:QNS), acquiring the shares from Managing Director Dato’ Sri Pek Kok Sam.
The share transfer comes as the company pushes to strengthen its presence in Malaysia’s rare earths sector through its 40% interest in MCRE Resources, acquired in September 2025.
In addition to its MCRE share, Southern Alliance Mining is now pursuing additional opportunities for its rare earths portfolio. These include the proposed acquisition of PSSB, which has a stake in the Labis Rare Earth Project in Johor, Malaysia.
Malaysia also turns to nuclear
Alongside the government’s push in the rare earths space, Hamzah has also called for the incorporation of nuclear reactor development into national energy planning, joining a growing cohort of countries pushing greater nuclear adoption, as previously reported.
MyPOWER has been appointed as Malaysia’s designated Nuclear Energy Program Implementing Organisation from November 2024, coordinating plans as the government evaluates its options on nuclear energy.
Write to Amy Rotman at Mining.com.au
Main image: MCRE Resources
