MALAYSIA COMMITS TO EXPEDIENT DEVELOPMENT OF CRITICAL MINERALS, RARE EARTHS WITH US COMPANIES - JOINT STATEMENT

By Kisho Kumari Sucedaram

KUALA LUMPUR, Oct 26 (Bernama) -- Malaysia has committed to the expedient development of its critical minerals and rare earths sectors in partnership with United States companies, including granting extended operating licences to create certainty for businesses to increase production capacity.

According to the Joint Statement on the US-Malaysia Agreement on Reciprocal Trade today, the White House said Malaysia has committed to refrain from banning or imposing quotas on exports of critical minerals or rare earth elements to the US. 

“Malaysia has committed to ensuring no restrictions are imposed on the sale of rare earth magnets to US companies,” it said. 

It also said that Washington and Putrajaya have committed to strengthening economic and national security cooperation, enhancing supply chain resilience and innovation, addressing duty evasion, and cooperating on investment security and export controls.

In addition, the White House said both countries take note of recent and forthcoming commercial deals between American and Malaysian companies, including the procurement of 30 aircraft plus a purchase option for 30 additional aircraft and the purchase of semiconductors, aerospace components, and data centre equipment with an estimated value of USD150 billion.

Others include the purchase of up to five million tonnes per annum of liquified natural gas estimated at up to USD3.4 billion per year, the purchase of coal and telecommunication products and services valued at USD204.10 million, as well as capital fund investments in the US of USD70 billion.

The joint statement said that both countries agreed to an Agreement on Reciprocal Trade to strengthen the bilateral economic relationship, providing exporters on both sides with unprecedented access to each other’s markets.  

“The agreement will build upon our longstanding economic relationship, including the US-Malaysia Trade Investment Framework Agreement signed in 2004,” it said. 

Besides that, the White House further said that Malaysia has committed to providing significant preferential market access for US industrial goods exports, including chemicals, machinery and electrical equipment, metals and passenger vehicles, and for US agricultural exports, including dairy, horticultural products, poultry, processed products, beverages, pork, rice and fuel ethanol.

It said Washington has committed to maintaining the reciprocal tariffs at 19 per cent, as set forth in Executive Order 14257 of April 2, 2025, as amended, on originating goods from Malaysia.

“The US also has identified products from the list set out in Annex III to Executive Order 14346 of Sept 5, 2025, Potential Tariff Adjustments for Aligned Partners, to receive a zero per cent reciprocal tariff rate.

“Malaysia has committed to address non-tariff barriers that affect bilateral trade in priority industrial areas.  Malaysia has also committed to address and prevent non-tariff barriers to US food and agricultural products in the Malaysian market,” it said. 

Additionally, the joint statement said the US Department of the Treasury and Bank Negara Malaysia are in discussion to finalise their mutual understanding on currency policy to support a fair economic relationship between both countries.

“In the coming weeks, the US and Malaysia will undertake domestic formalities in advance of the agreement entering into force,” it added.

-- BERNAMA