According to reports by the Malaysian newspaper The Oriental Daily, on July 17 local time, the Special Select Committee on International Trade and International Relations of the Malaysian Parliament issued a statement indicating that the committee is reviewing whether the rare earth supply agreement signed between Australian rare earth company Lynas and the United States will have an impact on Malaysia's foreign policy and strategic mineral sectors.
Lynas is one of only two major rare earth mining companies outside of China. It operates mines and processing plants in Western Australia, as well as facilities in Malaysia. The company also plans to build a magnet factory. Earlier this year, Lynas signed a binding letter of intent to supply rare earth oxides to the U.S. Pentagon over a period of four years.
Since April this year, 57 non-governmental organizations in Malaysia have launched a joint petition opposing the agreement between Lena and the US Department of Defense on rare earth supply. They are concerned that this could lead to rare earth processing businesses within Malaysia being directly linked to foreign military supply chains, and have called for Prime Minister Anwar to intervene.
On Thursday, a special committee for international trade and international relations was convened by the Malaysian Parliament to discuss this matter. The statement indicated that the committee heard reports from government officials, non-governmental organizations, and senior representatives of Lynas, in order to thoroughly examine Lynas’ role in the US defense supply chain and its impact on Malaysia.
The statement indicates that this meeting was held to examine and assess the impact of the US-Australia supply agreement, as this agreement could affect Malaysia’s international image as a staunch supporter of Palestine. After the hearing, the committee advised the government to formulate clearer policies regarding foreign investment, in order to protect the country’s interests and sovereignty. The committee also urged the government to make an official statement on this matter within two weeks.
Before this hearing took place, more than 20 Malay social organizations submitted a memorandum, urging stricter oversight over the country’s rare earth supply chain. They also opposed the supply agreement between Linas and the Pentagon, as the United States had provided military support to Israel during the war in Gaza.
Malaysia, a country with a Muslim population, does not have diplomatic relations with Israel and has long been supportive of Palestine on the international stage. After the outbreak of a new round of Palestinian-Israeli conflict, Malaysia increased its criticism of Israel.
Last week (July 6th), over 20 non-governmental organizations held a peaceful rally near the Malaysian Parliament House, calling for a halt to the supply of rare earth oxides used in weapons by Lynas to the United States. They demanded that the government intervene to prevent this practice from contributing to genocide.
