ORA-12019: master table is a synonym to a remote object
Cause : An attempt was made to create a materialized view or a materialized view log on a remote synonym which is unsupported.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Do not create a materialized view or materialized view log on a remote synonym.
Well, the reason for above error is that i have taken the above script from a 11g database and running it on 10g database. 11g has bring some changes in password management. Below code is executed on 11g and user created successfully, which is expected result.