Malaysian Trade Minister Debunks Rumors of Exclusive Rare Earth Supply Deal with US

KUALA LUMPUR, Malaysia. August 3, 2025 – In a recent press conference, Malaysia’s Minister of Investment, Trade and Industry, Tengku Zafrul Aziz, firmly denied reports suggesting that the country is obligated to supply rare earth elements (REE) exclusively to the United States.

The clarification came amid swirling speculation, potentially linked to ongoing global trade tensions and references to U.S. tariffs under former President Donald Trump. Tengku Zafrul addressed the issue directly, stating that such claims are “wrong news” and emphasizing that no agreements exist mandating exclusive supplies to the US or any other nation.

Source: X


“There is no agreement which has supplied exclusively to the U.S. or any other country for that matter, not to our neighbors or to China or to US,” the minister said in the video clip shared on his official X account. He added that the U.S. had never made such a request, dismissing the rumors as “a lot of speculation.”

The video, posted on August 2, 2025, shows Tengku Zafrul responding to a reporter’s question during what appears to be a media briefing at the Ministry of Investment, Trade and Industry. He referenced an upcoming joint statement for further details and reiterated Malaysia’s commitment to its own standards, including halal certifications, without compromise.

Rare earth elements are critical for technologies like electric vehicles, semiconductors, and renewable energy systems. Malaysia, with significant REE deposits, has been positioning itself as a key player in the global supply chain, especially as the U.S. seeks to diversify away from reliance on China, which dominates the market.

The minister’s post, captioned “Malaysia wajib bekal Rare Earth Element (REE) ke US? 🇲🇾🔥” (translating to “Malaysia must supply Rare Earth Element (REE) to US?”), has garnered over 4,000 views and sparked discussions online. Replies ranged from supportive clarifications to skeptical comments, reflecting public interest in Malaysia’s trade policies.

Tengku Zafrul’s statement underscores Malaysia’s strategy to maintain open and balanced trade relations, avoiding exclusive commitments that could strain ties with regional partners. As global demand for REE grows, the government continues to promote sustainable mining and processing initiatives under its “MADANI Bekerja” framework.

For more updates, follow developments from the Ministry of Investment, Trade and Industry.

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