Malaysia will be better off to let Lynas process their rare earth in Australia.
One reason that Lynas has invested heavily in Malaysia to process their rare earth there instead of in Australia is to circumvent Australia's strict laws on pollution and environmental protection.
It will cost plenty for Lynas to comply but such costs should become part of the costs of producing rare metals and be priced into the end products instead of exporting the pollution from process tailings to other countries like Malaysia.
China and their people have paid dearly for the pollution damage to their environment and water resources over the years by being literally the only producer of rare metals for the world because other consumer countries had gladly let China do the rare earth processing and keep the pollution in China as well.
Do a search under "rare earth pollution" and the reasons will become more obvious why Australia is "pushing" players like Lynas to process their rare earth outside Australia if they are unwilling to comply with Australian