What Benefit Do Malaysia Get From The Lynas Plant?

Quote CK Foo "Hey, we wont be jobless without this plant, Stop stating that how This bloody plant will boost Malaysian economy."Unquote

This is one of the most RIDICULOUS AND SELFISH statement made by a member of the Anti-Lynas clique.

If he is one of those 1,750 people directly or indirectly employed by Lynas and whose salaries or income are needed to put food on the tables for their families to survive, he would not make such an insensitive and hurtful statement.

Please read on:

What Benefit Do Malaysia Get From The Lynas Plant?

Even a primary school child should know that the construction of a multi-billion dollar industrial plant would bring enormous financial benefits to the local community as well as to the country.

Construction of the plant had provided a substantial boost to suppliers of commodities like concrete and steel and manufacturers of hundreds of other components. For example, the plant had used thousands of cubic metres of concrete—as well as 
• Thousands of tons of steel and miles of piping
• Hundreds of miles of electric wiring and hundreds of electrical components and all these are supplied by our local contractors.
The construction of the plant itself would had added hundreds of millions to the gross domestic product. 

Each year, the plant will generate billions in sales of the rare earth (economic output) and millions more in total labour income. These figures include both direct and secondary effects. The direct effects reflect the plant’s expenditures for goods, services and labour. The secondary effects include subsequent spending attributable to the presence of the plant and its employees as plant expenditures filter through the local economy (e.g., restaurants and shops buying goods and hiring employees). 

And the subsequent production of the plant is expected to be in the 

billions of ringgit and this is considered to be part of the country's gross 

domestic product (GDP). Billions more would be added to the GDP as a 

result of the spin-off effect.

Since the billions of dollars worth rare earth exports will be part of our export 

statistics, our exports and trade surplus will also increase by the billions.

And when our GDP is increased by the billions, the government will be 

allowed to print more billions of ringgit (CREATING MONEY OUT OF 

THIN AIR ) to pay for the schools, hospitals, subsidies and scholarships 

etc for the people, without any devaluation of our ringgit by the 


Key Facts
• Each year, the plant will generate millions to billions of ringgit as a spin-off effect in sales of goods and services in the local community and millions more in total labour income.
• Operation of the plant creates more than 350 highly paid permanent jobs. These jobs pay much more than those working the super markets or places like Kentucky Fried Chicken.
• The permanent jobs at the plant create an equivalent number of additional jobs in the local area to provide the goods and services necessary to support the plant work force (e.g., grocery stores, dry cleaners, car dealers). Even the sex workers in Kuantan would benefit!
• Construction of the new plant had created up to thousands of jobs at peak construction.
• Local contractors had benefited enormously from the construction of the plant, in terms of hundreds of millions of ringgit
• The yearly production of billions of ringgit of rare earth will add billions to our GDP and produce billions in export earnings (even though the money belongs to Lynas share holders, the national statistics will show up as our own in terms of GDP growth and export growth).


IS ABOUT 4 TO 8.. So although the Lynas plant gives direct employment to 

350 high paying jobs to the Kampong folks, THE ACTUAL NUMBER OF 


Why do we have to give Lynas the 12 yrs tax free incentive?

Quote Optiplex330: 

"Giving tax break is very common to entice people to set up business. If you are an Indian or Chinese your forebear coming from India or China know that very well. They were enticed to come to Malaysia to open up the country, and land were practically given free. 

Old people told me their land rental is a single pepper corn. Those who don't know about tax break know zero about businesses. Having said that, I think the maximum is 10 yrs so Lynas is unusual in that it is given 12 years.

A classic example: Businesses have to give Bumi 30% share but when Intel came to Penang, they were allowed SPECIAL treatment and don't have to give a single share to Bumi (may be this explain the extra 2 yrs tax break?). 

Why? This is because the government badly wanted Intel because when they come, they will bring along an entire electronic industry to Malaysia. 

So while government do not directly benefited from Intel, the follow on industry created by Intel greatly benefited Malaysia.

And also for this reason, those who think Lynas produces only about 300 jobs and no tax revenue for Malaysia are just being short sighted. They don't know that because of Lynas, a Green Technology industry could be born and Siemens is the 1st to announce coming precisely because of Lynas. 

But because of Anti-Lynas, Siemens may pull out so there go more jobs and tax revenue for Malaysia."

In Other Words, The Plant WILL Boost Local and Country's Economy.
The Lynas plant WILL provide substantial economic benefits during the decades of operation. 

The jobs, employee's taxes, and direct and secondary spending WILL strengthen the economy.


Dato' Dr Looi

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