"Is there any obligation on the Malaysian authorities to renew...

 "Is there any obligation on the Malaysian authorities to renew it?"

If all license conditions have been adhered to FOSL renewal would just be a matter of paying the license renewal fee, much like a drivers license. The authorities would need just cause not to renew the FOSL.

An important detail among all of this politically motivated nonsense is that Lynas has had its FOSL renewed previously and issued license approvals to increase storage limits of WLP residue on site by the AELB. The precedence has been set and now, under instruction form the Minister, it appears the AELB has ordered Lynas to remove the residues from site.

As far as I am aware the PH government review committee, which was a committee formed by the cabinet or executive committee, did not raise any concerns with WLP residue storage on site and operational monitoring data proves there is no issues with site residue storage so what justification does the AELB have to revoke Lynas residue storage license that was previously issued and then add a condition that Lynas must remove the residues from Malaysia also? There are none. 

It appears to me the AELB, under instruction form the Minster, have abused their power. The first step in the process is to appeal the decision to the Minister as due process dictates. Essentially the Minister is reviewing her own decision so we all know what the outcome will be. Next step will be to appeal the ministers decision in the courts by applying for an injunction on the ministers decision to seek judicial review. The atomic energy licensing act does state that the ministers decision is final and can not be appealed in court however that is in direct conflict with Malaysia constitution and will not stand. 

No doubt this will be a long drawn out process which will not be in the long term interests of anyone IMO.