KUALA LUMPUR (March 21): Malaysia establishes a Parliamentary Caucus for Critical Minerals to develop policy recommendations for the exploration, extraction, processing, recycling and diplomacy of critical minerals to build and ensure Malaysia’s competitive advantage in the global market.

The establishment came amid growing importance of critical minerals, especially rare earth elements, and while other countries have begun to introduce significant legislation aimed at securing their supply chain and increasing their strategic autonomy, said Ipoh Timor Member of Parliament (MP) Howard Lee in a statement on Thursday.

Lee has been elected as chairperson of the eight-member caucus in its first meeting in Parliament on Thursday.

“Crucial for a wide range of strategic sectors, including electronics, renewable energy systems, defence technologies and electric vehicles, the strategic management of these minerals is increasingly recognised as a global strategic priority,” he said.

Citing the US and the EU as example, Lee said these advanced economies have launched initiatives to reduce dependency on foreign critical minerals, outlining their national security implications.

Lee said Malaysia, with its abundant critical mineral resources and strategic location in Southeast Asia, is poised to become a key player in the global critical mineral supply chain.

However, to realise this status, Malaysia must address current policy and regulatory shortcomings, he said, and this requires legislative alignment and support, namely from both the upper and lower houses of the august Parliament.

Hence, a group of members from the both houses of Parliament came together to establish a caucus concerning critical minerals, Lee added.

The caucus also aims to increase awareness, strengthen discourse, and deepen understanding of all matters related to critical minerals among MPs and the general public, while advocating for a legal and regulatory framework that advances Malaysia’s critical mineral sector and ensures environmental sustainability and national security.

It also wants to enhance Malaysia’s role in global mineral security partnerships and forums to establish the country as a reliable partner in the critical mineral domain; and ensure the development of an inclusive sector by engaging various stakeholders and supporting innovation and skill development in the sector.

“The caucus will begin its work immediately, starting with engagement and courtesy visits to related ministries and state governments,” said Lee.

“Overall, the establishment of this caucus is determined to provide a strategic platform for Malaysia to navigate the complexities of the global critical mineral landscape, enabling Malaysia to leverage its resources for economic growth, sustainability and geopolitical positioning,” he added.