KUALA LUMPUR, 26 October 2025 — The United States and Malaysia have taken a major step toward strengthening global supply chain resilience with the signing of a new Memorandum of Understanding (MOU) on critical minerals cooperation, deepening bilateral trade and investment in the strategic resource sector.
The MOU, titled “Memorandum of Understanding between the Government of the United States of America and the Government of Malaysia Concerning Cooperation to Diversify Global Critical Minerals Supply Chains and Promote Investments,” was signed by U.S. President Donald Trump and Prime Minister Datuk Seri Anwar Ibrahim on the sidelines of the 47th ASEAN Summit and Related Meetings in Kuala Lumpur on Sunday.
Strengthening Supply Chain Security
According to the MOU, published on the White House website, the agreement aims to foster trade and investment between the two nations across the entire critical minerals value chain — including exploration, extraction, processing, refining, manufacturing, recycling, and recovery.
It seeks to diversify and secure global critical minerals and rare earth supply chains, ensuring both economic prosperity and industrial resilience for Malaysia and the United States.
The document underscores the importance of adhering to high international standards in extraction, processing, and recycling, reinforcing commitments to environmental responsibility and ethical sourcing.
“Each participant may determine if a project is suitable for investment,” the MOU stated.
“Participants will work in good faith to prioritise investments from the United States in critical mineral assets that may be sold in Malaysia or by a company headquartered in or incorporated in Malaysia.”
Technology, Expertise, and Bilateral Investment
Under the MOU, the United States will share information, technical knowledge, and best practices to help strengthen Malaysia’s competitiveness in the global critical minerals sector.
It also paves the way for joint research, innovation, and industrial partnerships, designed to enhance Malaysia’s position as a regional hub for clean energy technologies and sustainable mineral production.
The MOU’s scope includes coordination for projects that “advance secure, resilient, and responsible critical mineral supply chains,” while allowing both governments to evaluate investment suitability independently.
Although not legally binding, the agreement is expected to serve as a policy framework to facilitate cooperation, transparency, and mutual growth between both countries.
Flexibility and Continuity
The MOU will take effect upon signature and will not override any existing bilateral agreements between the two governments.
Either participant may discontinue cooperation at any time by issuing a written diplomatic note, though the MOU clarifies that ongoing projects initiated prior to such discontinuation would continue unaffected.
A Strategic Milestone in ASEAN’s 2025 Agenda
The signing of the MOU coincided with the 47th ASEAN Summit, hosted by Malaysia at the Kuala Lumpur Convention Centre (KLCC), where regional leaders convened to discuss economic resilience, sustainability, and energy security.
The agreement reflects a broader U.S. strategy to strengthen partnerships in Southeast Asia amid rising demand for critical minerals — materials essential to manufacturing electric vehicles, renewable energy systems, and advanced electronics.
Source: The Star
