Prime Minister Datuk Seri Anwar Ibrahim announced in Parliament today that Malaysia and South Korea have agreed to work together on developing local rare earth production, dismissing claims that Putrajaya is bound by a trade agreement favouring the United States.
The Prime Minister’s remarks came amid criticism of the Agreement on Reciprocal Trade signed during the recent Asean Summit, with some alleging it limits Malaysia’s trade options.
“This is an important fact to highlight because some people claim we can only sell our rare earth to the US. That’s not true,” Anwar said during the Prime Minister’s Question Time.
He explained that, during recent negotiations in South Korea, he had directed government-linked companies (GLCs) to collaborate with Korean firms to establish an additional rare earth super magnet facility in Pahang.
“This initiative was launched after we signed the agreement with Donald Trump,” Anwar said, underscoring that Malaysia retains full flexibility in its trade partnerships.
The Prime Minister also revealed that Malaysia is exploring similar cooperation with China.
“The same happened with Premier Li Qiang. I proposed that Chinese investments collaborate with Khazanah Nasional Berhad on rare earth projects. So there is no question of any restriction,” Anwar added.
