KUALA LUMPUR, Sept 5 — Perikatan Nasional’s formation SG4 Group Sdn Bhd to oversee rare-earth elements (REE) in the states under the coalition was commendable, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said today.

However, he reminded the coalition that commercial mining of REE would still be subject to federal government’s tax and regulatory oversight.

"I see the setup of SG4 Group Sdn Bhd as having a good purpose. There is a lot of potential to tap into REE as an export.

"As we know it, the global market prices for REE have dropped by 70 per cent which has been caused by the dumping of REE materials in the global market with the stockpiles produced by certain exporting countries.

"So, even though its prices have dropped 70 per cent, its potential is still huge,” he told reporters after the official launch of the International Legal Conference on Online Harm 2024 at the Kuala Lumpur Convention Centre here.

On Monday, informal PN adviser Tun Dr Mahathir Mohamad announced the creation of SG4 Group, with Kedah, Kelantan, Perlis, and Terengganu each owning a quarter stake.

The former prime minister also said the company will focus on five key sectors including economy and industry, green technology, infrastructure and logistics, trade and investment, and agriculture and food security, as well as education and human capital.

Dr Mahathir said each participating state will appoint its board of directors to oversee the company’s operations.