Malaysia rakes in RM421m from mining royalties, no export duty imposed

The Ministry of Natural Resources, Environment and Climate Change in Malaysia has revealed that there is no specific agreement in place for the mining industry between the federal government, state governments or mining operators. Despite this, the ministry has expressed its willingness to collaborate and offer advisory services to state governments for the development of the mineral industry.

The mineral industry’s development contributes directly to Malaysia’s national economy through royalty collection and mineral tenement approval payments made to state governments. In 2021, the state government collected royalties worth RM421 million for minerals and rock materials, including tin, gold, and kaolin. Currently, no duty is imposed on exported minerals.

The ministry’s roles are limited to regulating three areas: mining activities, processing, and export. This information came in response to a question from Perikatan Nasional’s Gerik MP Fathul Huzir Ayob, who asked if the ministry had agreements with state governments to cooperate on mineral extraction, similar to contracts with Petronas, specifically regarding tin, gold, kaolin, and lanthanides.

In addition to royalty collections, the government receives direct revenue through corporate tax levied on mining companies. For tin, cess collection is based on 40 sen per kilogram of tin concentrate exported. According to the records of the Lembaga Perusahaan Timah (LPT), tin cess collection in 2021 amounted to RM1,685,202.

Although no specific agreements currently exist for the mining industry, the Ministry of Natural Resources, Environment and Climate Change’s willingness to collaborate and provide advisory services to state governments demonstrates a commitment to the continued development of Malaysia’s mineral industry and its contribution to the national economy.

World News

Lee Shuyi

Lee is an expat writer living in Thailand. She specialises in Southeast Asian news for the Thaiger. When she's not writing, Lee enjoys immersing herself in Thai culture and learning Thai.

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