Midstream, Downstream REE Production Companies Eligible For Incentives
KUALA LUMPUR, Dec 8 (Bernama) -- Companies involved in midstream and downstream production activities of Rare Earth Elements (REE) are eligible to be considered for incentives under the Promotion of Investments Act 1986, namely Pioneer Status and Investment Tax Allowance.
The Ministry of Investment, Trade and Industry (MITI) said companies that carry out high-technology activities as well as small and medium enterprises (SMEs) may also be considered for special incentives under the same Act.
“These incentives aim to encourage the development of high value-added activities to strengthen Malaysia’s position as a global and regional REE processing hub,” it said in a written reply to Dewan Negara published on the Parliament website today.
MITI said this in response to a question from Senator Datuk Shamsuddin Abd Ghaffar regarding the ministry’s efforts to attract strategic investments to develop the REE processing industry, particularly in Perak, and the measures to ensure that the value add of these materials can be retained within the country instead of being exported merely as raw materials.
MITI also informed that Malaysia is also actively exploring cooperation opportunities with interested countries that possess the latest upstream-to-downstream REE technologies.
“Cooperation between the government and existing companies has created high-skilled job opportunities for local citizens and in turn promises higher income.
“Such technology sharing and the development of local vendors are among the key requirements emphasised by MITI in establishing any form of collaboration with foreign expertise,” it said.
MITI said that the government’s objective is to elevate Malaysia from being solely a producer of raw materials to becoming a major player in the production of downstream products such as Malaysian-made super magnets.
“MITI is of the view that the development of the local REE industry is important and aligned with the implementation of national policies, particularly the New Industrial Master Plan 2030 (NIMP 2030) and the National Advanced Materials Technology Roadmap 2021–2030 (NAMTR 2021–2030).
“A local mineral downstream industry that is viable and holistic will support the implementation of action plans under NIMP 2030, especially in achieving Mission One: Advancing Economic Complexity and Mission Three: Push for Net Zero,” it said.
-- BERNAMA