Wan Fayhsal urges government to review Lynas’ operating approval

KUALA LUMPUR – Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal has urged the government to review Lynas’ approval to operate in the country, due to the company’s rare earth industry model, which has left behind more than one million tonnes of radioactive material.

He said that through the Reciprocal Trade Agreement (ART) between Malaysia and the United States (US), Malaysia needs to build a sovereign, safe and ethical rare earth industry.

“Malaysia does not reject the rare earth industry, but rejects exploitation, and also questions the special treatment given to Lynas, which has enjoyed tax exemptions for 12 years, but at the same time only employs 855 workers as of June 2025,” he said in a debate session in Parliament recently.

Wan Fayhsal noted that since 2012, Lynas has produced over 1.8 million tonnes of radioactive waste without a permanent disposal plan in place.

He explained that although the Permanent Disposal Facility (PDF) was announced in 2023, its progress was only 32% at that time and has now only reached 72%, far behind the target of 82%. Despite this, Lynas’ operating license is being considered for renewal until March 2026, he added.

“For 12 years, the Lynas model has only left us with over one million tonnes of radioactive waste, while permanent disposal is still not fully completed. Profits are taken out, risks are left with our people.

“Today, with the influx of new investment from the US through ART 2025, Malaysia cannot repeat the same mistake. We must build a sovereign, safe and ethical rare earth industry.

“This is our stance, pro-investment, but firmly defending national sovereignty,” he said during a debate session in Parliament recently.

In his Facebook post, Wan Fayhsal also put forward several suggestions for the country’s rare earth industry, including imposing a temporary moratorium until the permanent disposal of Lynas is completed and audited by an independent body.

The government also urged the introduction of a national Rare Earth Act to control ownership, technology and waste.

“An international environmental audit in Gebeng, with local research and development (R&D) as the backbone of the industry, in addition to environmental restoration funds, must be financed by foreign companies.”

He also called on the government to ensure that all trade, export and investment agreements in the rare earth sector never sacrifice Malaysia’s economic sovereignty and environmental security.

“This reform is not anti-investment… it is pro-Malaysia,” he said. – November 27, 2025