The United States and Malaysia have signed a Memorandum of Understanding (MoU) to enhance cooperation in the development and expansion of critical minerals supply chains. The agreement, signed on October 26, 2025, in Kuala Lumpur by U.S. President Donald J. Trump and Malaysian Prime Minister Anwar Ibrahim, aims to strengthen trade and investment between the two countries in areas such as mineral exploration, extraction, processing, manufacturing, recycling, and recovery.
According to the MoU, both governments seek to "cooperate in strengthening critical minerals resource sector governance, promoting partnerships between United States and Malaysian companies, and promoting trade with and investment between the United States and Malaysia to expand Malaysia’s integration into secure and reliable global supply chains." The document highlights the importance of critical mineral supply chains for supporting various stages from exploration to recycling.
The agreement outlines that both parties will share information, knowledge, and technical expertise on international best practices to increase the competitiveness of Malaysia’s critical minerals sector. They also plan to coordinate support for bilateral projects that advance secure and responsible supply chains. Mechanisms for cooperation may include meetings between government officials, workshops with private sector stakeholders and universities, joint geoscience work, information exchanges, as well as capacity-building activities.
In addition to these efforts, the MoU notes that both countries intend to streamline permitting processes related to regulatory practices and ensure fair treatment of investors. There is also a commitment "to work in good faith to strengthen the review on critical minerals tools and rare earth asset sales as determined by the respective parties’ authority/government."
To protect domestic markets from unfair trade practices or non-market policies, both governments will establish high-standard marketplaces where compliant participants can trade freely under a pricing framework that may include price floors or similar measures.
Implementation of this understanding involves quarterly meetings—either in-person or virtually—between working-level representatives from each country. These discussions will focus on new opportunities for trade or investment within critical minerals supply chains.
The MoU clarifies that all cooperation is subject to available funding but does not represent an obligation of funds nor is it legally binding. Either party may discontinue participation at any time by providing written notice via diplomatic channels; however, ongoing activities initiated before discontinuation are intended to continue unaffected.
President Donald J. Trump signed for the United States while Prime Minister Anwar Ibrahim represented Malaysia at the signing ceremony.
