KUALA LUMPUR: The setup of SG4 Group Sdn Bhd by the four Perikatan Nasional-led state governments is a strategic move to harness the vast potential of rare earth elements (REE), says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
"The formation of SG4 Group Sdn Bhd serves a clear purpose, particularly in tapping into REE as an export commodity," he told reporters today after launching the International Legal Conference on Online Harms at the Kuala Lumpur Convention Centre (KLCC).
He said that while global REE prices have dropped by 70 per cent due to stockpiling and market dumping by certain countries, the potential for growth remains significant.
He added that the SG4 states would have their own strategies for venturing into REE but will still operate within the federal government's tax ecosystem for exports.
SG4, comprising Kedah, Terengganu, Kelantan, and Perlis, previously announced plans to explore downstream processing of REE as a new revenue source.
SG4 executive secretary Datuk Seri Takiyuddin Hassan had said the company will spearhead development in the member states.
Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar had highlighted the potential revenue from refining raw REE into pure elements like cadmium, noting that their value can increase exponentially when processed.
"The value of REE in its raw form is low, but when processed into pure elements like cadmium, the price can rise by hundreds or even a thousand times. Therefore, processing these elements will be a key focus," he had said.
At today's conference, Zahid was joined by Minister in the Prime Minister's Department (Law & Institutional Reform) Datuk Seri Azalina Othman Said.
The two-day event starting today is organised by the Legal Affairs Division (BHEUU), Communications Ministry, and Malaysian Communications and Multimedia Commission (MCMC) in collaboration with the United Nations Children's Fund (UNICEF), United Nations Office on Drugs and Crime, the police, and Human Rights Commission of Malaysia (Suhakam).
It aims to gather input from stakeholders, including the public, on a proposed law to ensure online safety and address cyberbullying, with provisions for a kill switch.