MARA Corporation Sdn Bhd has come out in defence of the memorandum of understanding it signed with Lynas Malaysia Sdn Bhd on collaboration in several projects.

Its chairman, Akramsyah Muammar Ubaidah Sanusi, said contrary to reports that the MoU was inked without parent company Mara’s consent, the relevant stakeholders had been engaged on the matter beforehand, and that the document’s signing was in compliance with all the requirements of good governance.

He said the MoU was brought to the Mara Corp board on September 23, and approved in the presence of a Mara Council board representative.

“The approval was not conditional, other than an agreement that it be kept confidential and expedited, understanding the sensitivity of such an MoU as the parent company of Lynas Malaysia is listed on the Australian stock exchange.”

He said Mara chairman Dr Hasnita Hashim was privately briefed on the matter on October 2, and the Rural Development Ministry was given updates on Monday.

There is a pressing need for an entity like Mara Corp to catalyse Malaysia’s downstream rare earth industrial, research and technological capabilities, leveraging Lynas Malaysia’s presence, he said.

“We are determined to pursue this opportunity for the nation, beginning with the MoU and our participation in the 16th Rare Earth Conference commencing later this week in Kuala Lumpur.”

He said Mara Corp views the MoU as valid, and will honour it given that it is strategic to the country’s economic development.

“It also fulfils Mara’s mandate with its focus on potential growth areas for Malays and Bumiputeras, in line with the prime minister’s aspirations as expressed in the Shared Prosperity Vision 2030.”

Lynas Malaysia is the largest producer of rare earth materials outside China.

Rare earths are essential to high technology, present in items like permanent magnets, catalytic converters, batteries, electronic devices and water treatment chemicals, among others. – Bernama, November 6, 2019.