Penang Pressed To Clarify REE Position As InvestPenang Governance Faces Scrutiny
GEORGE TOWN: The Penang government has been urged to take a firmer and clearer position regarding rare earth elements (REE) activities to ensure Malaysia’s natural resources are not linked to international military and defence industries.
The matter was raised by Batu Lanchang assemblyman Ong Ah Teong during the debate on the Penang Governor’s address at the state legislative assembly sitting today.
According to him, Malaysia has long upheld peace and neutrality in international relations, making the possibility of local REE resources being connected to military purposes inconsistent with the nation’s principles.
“We are concerned if Malaysia’s natural resources are eventually used in warfare-related industries because this country has always upheld peace and regional stability.
“If our REE resources become linked to military assets or warfare technologies, it could negatively affect the country and a society that rejects conflict,” he said.
Ong Ah Teong said concerns grew after several civil society groups alleged that an REE processing company in Malaysia may have supply connections linked to the United States Department of Defense, commonly known as the Pentagon.
According to him, 57 activist groups in Malaysia had previously voiced opposition to claims that an REE processing company in Kuantan secured contracts associated with the US defence sector.
He added that environmental organisations and anti-war groups had also raised concerns that Malaysian REE resources could potentially be used in military technologies or defence equipment.
He argued that such a situation contradicts ASEAN’s long-standing Zone of Peace, Freedom and Neutrality (ZOPFAN) principle.
As a result, he urged the state government to provide an official explanation regarding Penang’s stance on REE industry development, including safeguards and monitoring measures implemented by the state.
At the same time, Ong Ah Teong also questioned governance issues involving InvestPenang following findings highlighted in the Auditor-General’s report.
He alleged that salary increments and bonuses for the agency’s chief executive officer were approved without formal approval from the board of directors.
According to him, the matter raised concerns regarding oversight procedures and transparency within the agency.
He noted that several assemblymen had previously requested details regarding salaries and bonuses involving state government-linked companies (GLCs).
However, nearly all 41 state GLCs submitted the requested information except InvestPenang, which claimed the information was protected under a non-disclosure agreement (NDA).
“The issue is that an NDA is not equivalent to the Official Secrets Act. So why does InvestPenang appear to be exempt from the assembly’s checks and balances?” he asked.
He also questioned the agency’s failure to provide complete reports involving overseas work missions.
According to him, overseas mission expenses by InvestPenang reportedly exceeded RM500,000 even though the agency receives RM18.5 million in state government allocations.
In addition, he claimed the agency’s KPI achievements did not accurately reflect actual investment inflows because the figures used were sourced from Malaysian Investment Development Authority (MIDA).
He said this raised questions about whether the agency’s role in attracting investments is genuinely effective or merely overlaps with MIDA’s functions.
He further stressed that the governance concerns raised do not reflect Penang’s CAT principles of Competency, Accountability and Transparency often promoted by the state administration.
At the same time, he questioned whether InvestPenang remains relevant given the apparent overlap with Malaysian Investment Development Authority while the state continues to operate under a deficit budget.
-wilayah.com.my
