Lynas Contribute Significantly To Our Country and Local Economies

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 (which have been made by some of the protester)

• 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 labor income. These figures include both direct and secondary effects. 

The direct effects reflect the plant’s expenditures for goods, services and labor. 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.

And when our GDP is increased by the billions, the government will be allowed to print more billions of ringgit to pay for the schools, hospitals, subsidies and scholarships etc for the people, without any devaluation of our ringgit by the foreigners.

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 labor 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 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 contracters had benefitted 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).

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.