PUTRAJAYA, MALAYSIA 11 DECEMBER 2025 – The East Coast Economic Region Development Council (ECERDC) today signed a Memorandum of Cooperation (MoC) with the Japan Organization for Metals and Energy Security (JOGMEC) to strengthen technical collaboration in the exploration and development of rare earth elements (REE) and other mineral resources in the East Coast Economic Region (ECER).

On 26 October 2025, during the ASEAN-related Summit Meetings in Kuala Lumpur, Prime Minister Datuk Seri Anwar Ibrahim reiterated that Malaysia is ready to deepen cooperation with Japan across the REE and critical-minerals value chain, welcoming Japanese participation from upstream exploration and mining to midstream refining and downstream high-value manufacturing.

Under the ECER Development Plan 2026 – 2030, mineral development remains a strategic sector to attract investments across the upstream, midstream, and downstream value chain. ECERDC has been championing the growth of the REE industry in ECER and is positioning the region as a key player in Malaysia’s evolving REE landscape, spearheading initiatives that could unlock the nation’s vast REE potential.

ECER is well-poised to attract investments through ongoing efforts in exploration, sustainable mining practices, midstream and downstream industrial development, and strategic partnerships with foreign investors. This is supported by the region’s resource strength: it is estimated that nearly 70% of Malaysia’s REE reserves are in ECER states.

Despite strong resource potential, detailed exploration including high-cost resource verification and evaluation remains a key industry challenge. Through this MoC, ECERDC will collaborate with JOGMEC, an incorporated administrative agency supervised by the Ministry of Economy, Trade and Industry (METI) of Japan, leveraging JOGMEC’s extensive global experience in REE exploration and resource evaluation.

The MoC establishes a flexible framework for cooperation focused on:

• Geological exploration and resource evaluation activities.
• Knowledge and technology exchange, capacity building, and analytical support.
• Coordination with federal, state, and local stakeholders to align implementation with regulatory and national policy goals; and
• Strengthening linkages between upstream exploration and midstream and downstream Opportunities.

Within this cooperation framework, ECERDC will facilitate and coordinate exploration activities with the state governments of Kelantan, Terengganu and Pahang to advance priority REE prospects in ECER. Initial work under this collaboration is set to commence in Kelantan in the near term, marking an important first step to strengthen upstream readiness through credible, sustainable, and investor-ready exploration outcomes. 

“ECER has both the resource base and industrial readiness to become Malaysia’s leading REE corridor. This cooperation with JOGMEC strengthens our upstream capabilities so we can grow responsibly and competitively while ensuring the ECER value chain is ready for long-term investment,” said Dato’ Baidzawi Che Mat, Chief Executive Officer of ECERDC.

The MoC comes at a pivotal time in building a full REE supply chain in ECER. In the midstream segment, Lynas Malaysia, already operating in and has expanded its annual production capacity from 7,200 MT to 10,800 MT/ annum, with further plans to process 5,000 MT/annum of heavy rare earths in the coming years. As Lynas prepares to process Malaysian-sourced REE, this MoC will help ensure sustainable exploration and mining practices are in place to fully materialise ECER’s upstream potential and support secure, high-quality feedstock for midstream growth.

On the downstream front, ECER’s REE journey is set to take a significant leap forward with the

planned establishment of a rare earth permanent magnet manufacturing facility in Kuantan, Pahang, to be developed through a partnership between Lynas Malaysia and JS Link of South Korea. The proposed 3,000-tonne neodymium-iron-boron (NdFeB) permanent magnet plant at an estimated RM600 million investments, is targeted to begin operations around 2027, marking a major turning point for ECER’s value chain. By anchoring magnet-making capabilities in the region, this facility is expected to boost downstream value capture and strengthen ECER’s

position as one of the few locations in the world with an integrated REE supply chain from sustainable upstream mining to advanced downstream manufacturing.

The MoC is effective upon signing and remains valid until 31 March 2028, providing a platform for joint activities based on mutual agreement and resource availability.