KUALA LUMPUR: The critical minerals boom in Malaysia is expected to positively impact the local real estate market, according to Juwai IQI co-founder and group chief executive officer Kashif Ansari.
He said that this surge will increase demand for industrial space and land in regions with mineral reserves, stimulate new residential and commercial developments, and enhance property values.
Kashif said the increased need for industrial space is the most direct real estate impact.
"As Malaysia ramps up its role in refining and processing critical minerals, companies will need factories, warehouses, and logistics hubs.
"The new mining and processing investment will also spur residential and commercial real estate development in key regions. We especially expect this in Pahang, Perak, and Kedah because they have rich deposits of critical minerals," Kashif said.
Kashif said that nearly all homeowners will also benefit as the regions involved in the critical mineral supply chain see their economies boom.
This will create local wealth and boost incomes and opportunities nationwide by enriching the national accounts, he said.
"We expect to see a direct impact on property values. When Malaysian families find they have more money in the bank, they will want to buy bigger and more convenient homes," he said.
"So, in general, we believe that the critical mineral opportunity will drive real estate development and boost property values. That will be a win for Malaysians."
Kashif said that this will be good for households in the B40, especially those who take some of the high-paid jobs in this growing industry.
"They should see the biggest impact in terms of increasing household income and better housing affordability," he said.
According to an analysis released by the firm, Malaysia's reserves of rare earth elements have the potential to generate high-paying jobs and boost export income as companies worldwide seek new suppliers.
It stated that the market for minerals is currently worth RM1.4 trillion.
"That is already massive, but it's just the beginning. By 2040, this market will swell to RM3.4 trillion, fuelled by the need for materials that power electric cars, wind turbines, and solar panels," Kashif said.
Kashif said that according to the company's analysis, the shift to green energy is driving a surge in demand for critical minerals, presenting significant opportunities for Malaysians.
He said that the green transition offers a chance to strengthen Malaysia's economy, given the country's rich reserves of critical minerals.
He noted that Malaysia's strategic location, industrial capabilities, and mineral wealth position it well to capitalise on this growing demand.
"By expanding its role in processing and manufacturing these minerals, Malaysia can create new jobs, drive economic growth, and ensure that the country remains competitive on the global stage."
Kashif said that government initiatives like the New Industrial Master Plan 2030 are instrumental in making this a reality.
However, he cautioned that increasing exports of critical minerals comes with risks, particularly the potential for environmental damage if the industry is not managed sustainably.
With smart investments and a focus on sustainability, he believes Malaysia could play a leading role in the global green energy revolution, creating a brighter and wealthier future for its people and local workers.
"The average income of Lynas employees is four-times larger than the local average in Pahang,'' he said.