Malaysia, Japan strengthen economic security cooperation

Malaysia and Japan have agreed to strengthen economic security cooperation, including the resilience of supply chains for critical minerals and rare earth elements. The agreement was conveyed during a meeting between Malaysian Prime Minister Anwar Ibrahim and Japanese Prime Minister Sanae Takaichi in Tokyo, Japan, on Wednesday (10/6). In a joint statement, both leaders expressed concern over various forms of economic coercion. They also highlighted the use of non-market policies and practices as well as arbitrary export restrictions that could negatively impact global supply chains. Both countries agreed to deepen cooperation to strengthen supply chain resilience, including for critical materials, and to promote transparent, secure, sustainable, and reliable supply chains among trusted partners. Both nations also agreed to expand cooperation with like-minded countries, including Australia and France, in the development of critical mineral supply chains. Malaysia welcomed Japan’s announcement of a $20 million contribution (approximately Rp356.7 billion) to the Critical Minerals-to-Manufacturing Financing Partnership Facility (CMM-FPF) launched by the Asian Development Bank (ADB). The facility is intended to strengthen critical mineral supply chains in the Asian region, including Malaysia. Anwar also welcomed the Resilient and Inclusive Supply-chain Enhancement (RISE) Partnership initiative spearheaded by the World Bank Group to strengthen critical mineral supply chains in ASEAN, including Malaysia.