Investors will shun Malaysia if Lynas treated like ‘pariah’, says PM

Mohd Farhan Darwis Lee Chi Leong Mohd Farhan Darwis, Lee Chi Leong Updated 4 years ago · Published on 26 Aug 2019 11:27AM · 2 Comments

Prime Minister Dr Mahathir Mohamad speaking at the World Tourism Conference in Kuala Lumpur today. He says if Malaysia treats Lynas badly, other companies will not want to invest in the country. – The Malaysian Insight pic by Seth Akmal, August 26, 2019.

FOREIGN companies will not want to invest in Malaysia if they feel they will be treated like Australian rare earth miner Lynas, Prime Minister Dr Mahathir Mohamad said today.

The country could lose large investments if the government were to fully give in to the demands of those who want Lynas’ rare earth processing plant in Gebeng, Pahang, to move out of Malaysia, he said.

“We invite them to invest in Malaysia and they produce waste, so we send experts to determine if the waste is dangerous and the experts confirm it is not, but those who still oppose Lynas want it to get out.

“This is a big investment that has created high-income jobs. It is an important investment to us, so, if we treat Lynas like a ‘pariah’ and ask them to get out, others will not want to invest in our country,” Dr Mahathir said at a press conference after launching the World Tourism Conference in Kuala Lumpur today. 

Lynas Corporation Ltd has invested more than RM3 billion on the Lynas Advanced Materials Plant (LAMP) in Gebeng since it began operations in late 2012 to process rare earth mined and brought in from Western Australia.

The plant reportedly needs RM500 million to sustain operations.

Lynas Corp chief executive officer Amanda Lacaze had said that 97% of the 650-strong workforce at the plant are Malaysian, while 70% of the company’s management here are also locals.

LAMP’s operating licence had been due for renewal on September 2 but was dogged by concerns about its waste management for low-level radioactive residue.

The Pakatan Harapan government, which had campaigned on environmental sustainability in business as one of its 2018 election promises, had initially laid strict conditions for the plant’s licence renewal.

Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin had been vocal in demanding that Lynas ship its waste out as a precondition to the renewal.

A few others in the government, however, including Dr Mahathir, have said Lynas should be allowed to operate and alternatives be found for its waste disposal as Australia had refused to take back the waste.

Earlier this month, Putrajaya gave LAMP a conditional six-month extension, which anti-Lynas activists have dismissed as being as good as allowing the plant to continue operations here beyond the period.

The conditions imposed involve moving the cracking and leaching process of rare earths abroad within four years so that waste production here would eventually be halted.

Lynas must also identify a site for and build a permanent disposal facility for wastes, and also provide official, written permission by the authorities of whichever country it plans to send low-level radioactive waste to.

It must also stop research and development on using low-level radioactive waste as a soil conditioner for agriculture. – August 26, 2019.

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Comments

  • Dear Tun, this is one area I beg to differ, the core issue here is the well being of the local folks living there and not how the foreign investors would look at us. Immediate impact would be current and future investment coming from Australia plus if any of its allies. Investors are first and foremost business minded people who wants higher returns of their business venture, period. As a nation criteria are those norms of a stable country, well set up infra structure, good work force not forgetting at cheap rates, incentives and exemptions where applicable. At the rate we are going we have already loose out to the likes of Vietnam and Indonesia thanks to the previous administration. If our package is right those investors wont shun away from us. Even if its effected our foreign investment per say, I personally dont think we Malaysian would die of starvation it may however had hiccups on the Government plans how to spur the economy via the gains of those investments. I fear more of the term Pariah is labeled at the PH Government by the effected local folks primarily and by us Malaysian at large for looking at the dollar signs more then the well being of Malaysian.

    Below my earlier comment also on TMI

    In the first place we shouldn't have inked an agreement with Lynas to begin with, thats history as the administrator then were inept. Now the Government of the day should take into account the well being of the local folks long-term health progression first and foremost regardless how big the foreign investment are. It's sad to hear that decisions were made based on the account of huge investment that can't be ignored. 15-20 years ago we never had Lynas thus 15-20 years ago that revenue stream wasn't there, PH Government is saying now that we have tasted the dollars are we can't say no to it?? It's purely down right to the political will and to turning your back to those voters is a sin. To Fauziah I throw this to you, if PH proceeds to allow Lynas to be in operation would you step down?? This is one investment agreement that we can revoke and it would not tarnish our image nor effect other investments other than perhaps from Australia. To those effected workers lets set up a focus working group to dealt and handle each and everyone of them post Lynas. 30-50 years from now the people who made the decisions on Lynas would probably at the old age or no longer around but the kids in the area and those un born child are going to face the effect and it will still be an issue then. Why make people lives difficult for the extra bucks of investment while you can make the right thing now.

    Posted 4 years ago by Teruna Kelana · Reply

  • The PM should put public health above all other considerations. Who are these experts? Were they independent? Have they published their findings? Investors note if governments are responsible and transparent as this encourages them to have confidence. Only investors who are looking to do business that is not allowed elsewhere with stricter environmental protection will invest elsewhere. Thats a good thing.

    Posted 4 years ago by Malaysia New hope · Reply