Mara Corporation has defended the Memorandum of Understanding (MoU) it signed with Lynas Malaysia Sdn Bhd for collaboration on several projects, including attracting downstream industries and downstream customers to Malaysia.

Mara Corporation chairman Akramsyah Muammar Ubaidah Sanusi said contrary to news reports that the MoU was signed without the consent of Mara Council, all relevant stakeholders had been engaged on the matter, and it was signed in compliance with all requirements of good governance.

In putting the record straight on the issue, he said the MoU was brought to the board of Mara Corporation on Sept 23, and approved with the board representative from the Mara Council in attendance.

"The approval was not conditional, other than it being agreed that it be kept confidential and be expedited, understanding the sensitivity of such an MoU as the parent company of Lynas Malaysia is listed on the Australian Stock Exchange.”

Akramsyah said the chairman of Mara, Hasnita Hashim, was also briefed on the matter in a private discussion on Oct 2, while the office of the Minister of Rural Development had been kept abreast of developments up to the signing of the MoU on Monday.

He said there was a pressing need for an entity like Mara Corporation to catalyse Malaysia's downstream rare earth industrial, research and technological capabilities, leveraging on Lynas Malaysia's presence.

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

Akramsyah pointed out that Mara Corporation considered the MoU as valid, and would proceed to honour it, given that it was strategic to Malaysia's economic development.

"It fulfills Mara's mandate also in focusing on potential growth areas for Malays and bumiputeras, in line with the Prime Minister's aspirations, expressed through the Shared Prosperity Vision 2030 of the government, in particular through the creation of new high-value jobs in the economy from this collaboration," he said.

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

Rare earths are essential inputs to high technology with key uses being permanent magnets, catalytic convertors, catalysts, batteries, electronics and water treatment chemicals.

The end users of rare earths include internal combustion, hybrid and electric vehicles, automation and defence systems, wind turbines and oil and gas.

- Bernama