GEORGE TOWN, May 11 — The Penang government has been urged to take a clear stance to ensure that rare earth elements (REE) from the state are not used for weapons-related purposes.

Ong Ah Teong (PH-Batu Lanchang) said it is inappropriate for Malaysia’s natural resources to be channelled into warfare when the country has long upheld the principles of peace.

“We are deeply concerned that if REE from Penang is misused, it could potentially trigger unforeseen conflicts and bring negative implications to the country, particularly to a population that values peace,” he said when debating the Penang Yang di-Pertua Negeri’s speech at the state legislative assembly today.

He said that last month, 57 activist groups in Malaysia raised concerns over the alleged supply of REE to the United States Department of Defense (Pentagon).

“They had voiced their opposition against the company processing REE in Kuantan which allegedly has secured a contract to supply REE to the Pentagon,” he said.

He added that environmental activists and anti-war groups had also raised concerns that REE from Malaysia could be used for weapons-related purposes.

“This situation clearly contradicts Malaysia’s and Asean’s policy, which upholds the principle of the Zone of Peace, Freedom and Neutrality (ZOPFAN),” he said.

Ong called on the state government to provide an updated report on the REE issue in Penang during the winding-up session.

On another matter, he raised concerns over governance issues involving InvestPenang, citing findings by the Auditor-General.

He said it was revealed that salary increments and bonuses for the chief executive officer were approved without the approval of the board of directors.

“Previously, questions had been raised by state assemblymen regarding the salaries and bonuses of GLCs,” he said.

He added that almost all 41 government-linked corporations (GLCs) had submitted relevant information to the House, except InvestPenang, which claimed the information was subject to a non-disclosure agreement (NDA).

“The question is that an NDA is not the same as the Official Secrets Act (OSA),” he said.

“What makes InvestPenang different from other GLCs to the extent that it can bypass the checks and balances of this House?” he asked.

He said InvestPenang also failed to provide complete reports on overseas visits.

“For the information of the House, InvestPenang’s expenditure on overseas missions exceeded half a million ringgit while InvestPenang receives a government allocation of RM18.5 million,” he said.

Ong said InvestPenang’s KPI achievements do not reflect actual investment inflows, as the Auditor-General’s findings indicated that reported figures were sourced from the Malaysian Investment Development Authority (MIDA).

He urged the state government to clarify the matter, saying InvestPenang’s governance does not reflect the state’s CAT (Competency, Accountability, Transparency) policy principles.

He also questioned whether InvestPenang was still necessary given its overlapping functions with MIDA and the state operating under a deficit budget.