Malaysia is to ban exports of rare earths in a bid to boost the domestic industry

On Sept 12, Prime Minister Anwar Ibrahim reportedly said on Monday that Malaysia would enact a policy banning exports of rare earth raw materials to avoid mining and resource losses, making it the latest country to restrict shipments of critical minerals. According to 2019 data from the United States Geological Survey, Malaysia has only a fraction of the world's rare earth reserves, estimated at 30,000 tonnes. China is the largest source of rare earths, with reserves estimated at 44 million tonnes. Yet the decision comes at a time when the world is looking to diversify away from China. China is the world's largest producer of key rare earth minerals, widely used in semiconductor chips, electric vehicles and military equipment.

Anwar said the government would support the development of Malaysia's rare earth industry and the ban would "guarantee maximum returns for the country". He did not say when the proposed ban would take effect. Anwar said the rare earth industry is expected to contribute 9.5 billion ringgit ($2 billion) to Malaysia's gross domestic product (gdp) and create nearly 7,000 jobs by 2025.