“Penang Finds RM 87 [billion] Worth of Treasure” Or Did It?

“Penang Finds RM 87 Worth of Treasure” Or Did It?

6 Dec 2025 • 10:30 AM MYT


AM World
A writer capturing headlines & hidden places, turning moments into words

Photo by Mahmud Ahsan on Unsplash


A wave of excitement rippled across Malaysia. Penang’s state government announced a massive discovery: non-radioactive rare-earth deposits (NR-REE) across several hill zones, with an estimated value of US$21 billion roughly RM 87 billion. (Malay Mail)


That headline, plastered in mainstream outlets, triggered both euphoria and skepticism. For many Malaysians, still reeling from economic uncertainty, it felt like the windfall they’d been waiting for. For others, especially environmental activists and communities with memories of past mining disasters, it rekindled a familiar fear about hidden costs.


This story explores what this “treasure” really means: the promise it holds, the peril it carries, the social tensions it awakens, and the deep questions it forces Penang and Malaysia to confront.


A Glittering Promise


During the state legislative assembly session, Chow Kon Yeow, Chief Minister of Penang, revealed that preliminary surveys by the Department of Minerals and Geoscience Malaysia (JMG) had identified what might amount to 1.7 million metric tonnes of NR-REE deposits spread across hill areas such as Teluk Bahang, Balik Pulau, Bukit Mertajam and Bukit Panchor. (Malay Mail)


He said if verified, these deposits could inject new life into the state’s economy a major boon given Penang’s current financial constraint. Between 2020 and 2024 the state had drawn from its reserve funds to support welfare programs during the Covid-19 pandemic. (Malay Mail)


The “treasure” fits neatly into a broader global trend: rare earth elements powering high-tech devices, electric vehicles, green technologies, and advanced electronics. If Penang can process or export these minerals, it could position itself as a critical node in a high-value technological supply chain. The windfall might improve public infrastructure, create jobs, and transform the state’s economic trajectory.


That potential has not been lost on investors. The state government signalled openness to proposals from local and international parties to explore the REE deposits under a regulatory framework to be drawn up. (Malay Mail)


Echoes from the Past: Legacy of Risk


But before optimism takes root, caution flags have sprung up. Critics recall the shadowy legacy of REE mining in Malaysia most notably the environmental disaster linked to a REE plant in Bukit Merah, Perak, in the 1980s. Many residents near the plant reportedly developed cancer and children were born with deformities. (Malay Mail)


Activist groups such as Consumer Association of Penang (CAP) and Sahabat Alam Malaysia (SAM) have warned the state government to tread carefully. They argue that any rush to exploit REE must consider environmental, social and health impacts first. (Consumers Association Penang)


A report from the International Renewable Energy Agency (IRENA) is often cited by critics. According to IRENA, producing one tonne of rare earth elements can generate up to 2,000 tonnes of toxic waste, including hazardous wastewater and radioactive residues. (Consumers Association Penang)


Given that, many fear the decision to mine could leave long-term scars: polluted land, contaminated rivers, health crises, and social disruption risks that may far outweigh short-term gains.


Local Voices and Cultural Stakes


To understand the deeper weight of this discovery, one must step beyond economics and politics into culture and local identity.


George Town Conservation Development Corporation and local heritage stakeholders have previously pushed to preserve the historical and cultural landscape of Penang, which includes centuries-old shophouses, vibrant streets, and a layered multicultural past.


In recent months, as Penang undertakes several heritage-conservation and restoration projects, there is a growing anxiety among residents that mining operations and large-scale industrial activities could disrupt historic sites, natural beauty, and way of life.


Another dimension emerges from Penang’s archaeological heritage. Past local discoveries such as the 5,000-year-old human skeleton known as Penang Woman hint at deep-rooted prehistoric human settlements. (USM News)


If mining proceeds, will such sites be preserved or threatened? Will future generations regret the loss of irreplaceable historical layers in exchange for immediate financial gain?


The Hard Numbers and Uncertain Variables


On paper the value RM 87 to RM 100 billion looks compelling. But these figures rest on preliminary estimates. As Chow himself acknowledged, the resources are “potential” and the exact quantity and economic viability must be confirmed through detailed geological studies. (Malay Mail)


Moreover, the transition from deposits to usable resources involves heavy investment: from mining infrastructure, refining facilities, waste management systems, to regulatory compliance.


It is not unusual in global mining history for estimated deposits to shrink substantially after in-depth exploration. For Penang, reality could fall far short of promise.


Another critical variable is social license. Even if the minerals are abundant and economically viable, public opposition especially from local communities and environmental groups could stall or block development.


A Political and Economic Tightrope


For the Penang state government, this moment brings both opportunity and risk. On one hand, the REE deposits offer a path to fiscal recovery, economic growth, and job creation. On the other, rushing into exploitation could provoke public backlash, environmental degradation, and long-term liabilities.


Some analysts argue that Penang could explore a middle path: conduct comprehensive environmental impact assessments, engage public consultations, ensure transparency, set up waste-management protocols, and possibly negotiate benefit-sharing mechanisms with local communities.


This approach could transform the “treasure” into a tool for equitable development rather than a pitfall for profit-hungry developers. It might also help preserve Penang’s rich heritage natural, cultural and historical while tapping into new economic potentials.


What This Means for Malaysia and Beyond


If Penang proceeds wisely, this discovery could have ripple effects across Malaysia. It might encourage other states to re-evaluate their mineral potential. It could attract foreign investors interested in green technologies reliant on rare earths. It could tighten Malaysia’s role in global supply chains for electronics, EVs, and renewable energy infrastructure.


But if mismanaged, it could contribute to environmental damage, social displacement, and erasure of cultural heritage. The legacy of mining in Malaysia is still stained by past disasters.


International observers are also watching. The global demand for rare earths is rising amid the shift to sustainable energy and electrification. Countries with REE deposits may gain geopolitical leverage. For Malaysia, the stakes are high: it could mean billions in foreign exchange, or decades of environmental debt.


Treasure or Trap?


The phrase “RM 87 [billion] worth of treasure” captures both hope and irony. It speaks to dreams of prosperity, but also warns of hidden costs. For the people of Penang this “treasure” carries weight beyond economics it digs into identity, history, environment, and future generations.


If the state moves forward, it must do so with care. Transparent public consultations, robust environmental standards, strict regulation, and social fairness must be non-negotiable.


Indonesia and other neighbouring countries have suffered environmental tragedies when mining took priority over people and heritage. Penang cannot afford to repeat those mistakes.


For Malaysia as a whole, the discovery is a crossroads. The country could chart a path toward sustainable development or fall into the familiar trap of short-term gains at long-term cost.


RM 87 billion may sound like gold. But treasure is not just about numbers. It is about responsibility. The land, the people, the heritage, the future.


Penang has a chance to turn this “hidden treasure” into shared prosperity. But only if authorities, communities and investors collaborate. Only if they treat the hills not as vaults to be emptied, but as living landscapes to be respected.


The true value of this discovery lies not in immediate profit. It lies in whether Penang can use it to build a future that honors its past, protects its environment, and empowers its people.


If that happens, then the treasure will be realised not in ringgit, but in trust, dignity, and sustainable legacy.