A successful company cannot just stand there alone. It needs very much support from the society and other parties. And as the company succeeds, it needs to contribute to the society as an appreciation, at the same time, gaining its reputation and more supports from the society, or the public.
For instance, a public listed company needs shareholders and investors to invest their money to fund the company, in order to make sure the cash flow to be healthy. If one day, the company lost its reputation and ALL of the investors leave the company, the company is left empty at the end, or just bankruptcy.
For another instance, a retail products company needs support from buyers like us, to spend our money to buy their stock, like Nestle Milo, Cadbury Chocolate, HTC smartphone, Apple Ipod, Samsung TV. These companies need buyers to inject money into the company by buying the products from them. If the company’s turn to be bad reputation, like the case happen in KFC, many Malaysians start to boycott by not having meal there anymore. This causes a big problem to KFC Holding Bhd. It has lost the society support. Luckily, it apologized at the last second.
For one more example, an infrastructure company needs support from government, who provides projects and contracts to the company. Because only government can approve those contracts. However, government needs support from the public, to ensure the infrastructure built benefits the people. Like Gamuda, it was awarded the project to build double-lane railway from North to South. This is good. But it might be bad for those who stay near to the railway because the they need to move. However, compensation needs to be done to the residents. If majority of the people disagree and never support the project, it won’t work. Just like the Jalan Petaling and Jalan Sultan, the Government want to acquire all the land from the owner to build subway. Why is it necessary? That raised quite a big wave of protest among government. This is feedback from society. People don’t support, the company which going to take this project won’t alive.
Same thing to Lynas. It’s not even a local company. It’s from Australia. How is it possible for a company from Australia, dispose its waste in our country? What’s worse is, the company pays the Government, people pay the health. What is government going to do for the people? The people protest, government being dumb.
As investors, we all know that a company couldn’t survive too long without support from the society, although it is supported from government, ONLY Government. And do remember, Government is supported by people, and it can be pulled down by people too. Without support, the Government is just like the Stadium Terengganu, we called it
We, investors know that, we should just invest in strong fundamental companies. We won’t support any company like this Lynas, which is disposed from Australia, and disposing waste in Malaysia, that is supported the current government, which will also be disposed by the people in next GE.
I don’t see you Lynas, and byebye BN.