MoU with Lynas without your consent? You attended board meet on decision, MARA chairman tells council

KUALA LUMPUR, Nov 5 — MARA Corporation Sdn Bhd today disputed MARA Council’s claim that the memorandum of understanding (MoU) with Lynas Malaysia Sdn Bhd had been inked without the approval of the council.

In a statement, MARA chairman Akhramsyah Muammar Ubaidah Sanusi stated that all relevant stakeholders had been engaged on the matter before the signing of the MoU, in compliance with all requirements of good governance.  

“The MoU was brought to the Board of MARA Corporation on 23 September, 2019 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 in the Australian Stock Exchange (ASX).  

“The Chairman of MARA was also later briefed on the matter in a private discussion on 2 October 2019. The office of the Minister of Rural Development has also been kept abreast of developments up to the signing of the MoU,” he said.

Akramsyah added that MARA Corp is “determined” to pursue Malaysia’s downstream Rare Earth industrial, research and technological capabilities starting with the MoU with Lynas Malaysia, and that it will also be participating in the 16th International Rare Earth Conference commencing later this week in KL.  

“MARA Corporation hereby considers the MoU as valid and will proceed to honor it as we see it as strategic to the economic development of Malaysia.

“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 Shared Prosperity Vision 2030 of the Government; in particular through the creation of new high-value jobs to the economy from this collaboration,” Akramsyah said.

The MARA Council had earlier said that the MoU was inked without its approval and that the council was in the process of reviewing MARA Corp and its subsidiaries’ future direction.

The MoU between Lynas Malaysia and MARA Corp is the start of a collaboration on several key projects, which will include attracting downstream industries and downstream education and training initiatives in Malaysia, commercialisation of NUF (Neutralisation Underflow Residue) residues from the Lynas Malaysia plant including making soil conditioner (fertiliser) products for Malay farmers as well as design and fabrication work related to the Lynas 2025 Project.