Malaysia, Japan Strengthen Rare Earth and Energy Cooperation
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Malaysia, Japan Strengthen Rare Earth and Energy Cooperation

Malaysia and Japan have agreed to cooperate in rare earth supply chains, energy security and advanced technologies following Malaysian Prime Minister Anwar Ibrahim’s three-day visit to Japan, where he held talks with Japanese Prime Minister Sanae Takaichi.

According to a joint statement issued after the summit, countries pledged to strengthen economic security cooperation amid growing concerns over the stability of global supply chains. The discussions emphasised critical minerals and rare earth resources as sectors that have gained strategic importance following China’s restrictions on rare earth exports.

Malaysia will continue working closely with Japanese organisations JICA, JOGMEC and JBIC to strengthen rare earth supply chains and resource development. Australia and France were identified as “like-minded partners” for future cooperation to improve policy coordination and streamline administrative procedures in the sector too.

Japan announced an offering of US$20 million for the Asian Development Bank’s Critical Minerals-to-Manufacturing Financing Partnership Facility; Malaysia welcomes the move as it aims to enhance its rare earth development capabilities.

For Energy cooperation, Malaysia reaffirmed its commitment to supplying Japan with liquefied natural gas, naphtha, urea and other petrochemical products. Malaysian energy giant Petronas recently signed a new 20-year agreement with Japanese company JERA to supply up to 2 million tonnes of LNG annually beginning in 2028.

Beyond energy and minerals, the two countries discussed collaboration in artificial intelligence, semiconductors and hybrid electric vehicles, reflecting efforts to expand bilateral cooperation into future-focused technology sectors.