Saturday, March 3, 2012

A company is not going to last long without a good support from the society, Lynas and BN, do you hear me?

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

RUNTUH! (Collapse)

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.

2 comments:

  1. Yes totally agreed. Government will only seek for the huge profit by supporting this project in short term, but it was neglected the other factors like environment issues and other healthy issue which will cause the people stay in unhealthy place and affect the future of society in long run.
    If the government is still insist to continue this project, it will let the history repeats itself like the case of 30 years ago in Perak. Even there is a license to prove there is no harm to people, but people still do not trust, because no one can answer the question of how to dispose of this huge amount of garbage after producing the rare earths in more secure way for environmental protection.

    From Lydia

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  2. Exactly Lydia. What happen 30 years back should be a good reason for the government to stop Lynas. It's a disaster for the people, while the government enjoy the profit and their life without even worry what happen to the people surrounding them.
    Just because of the disaster happened in 30 years back, people protest today. If government had shown his ability in management of the waste disposal 30 years ago, the protest won't even happen today because people will trust it. But in fact, what does government show to people? Just poor management, low credibility and low transparency.

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