Investors don’t want to be scuppered by individuals with malicious intent

 

It is not just foreign investors who take a keen interest in the ongoing controversies in Malaysia, but local investors and businesses will also harbour many concerns as a result of the “Allah” socks issue.

The investor, either local or foreign, who is keen to pour money into a business, looks for stability. Both want a stable government, and relatively harmonious, community relations in the country.

The investor does not want to invest millions of ringgit, only to risk a government takeover or be crippled by some policy which will affect the smooth running of his operation.

Nor does he want his business to be scuppered by individuals with malicious intent.

Investors welcome governments which lend their support, and not hinder them. Delays to their applications to build or approve the necessary permits mean they lose money.

Investors fear threats which they have no control over, such as demands to boycott their activities, because of a perceived insult, as in the recent socks scandal.

All investors want their employees to work in a safe and secure environment and that is why the recent threat to torch the factory of KK Mart’s vendor in Batu Pahat forced the owner to temporarily halt operations, for fear that his workers’ lives will be put at risk. Moreover, his workers would not knowingly come to work, with the possible threat looming over them.

Effect on PRC companies

It was alleged that the socks were imported from China. In future, will PRC companies be more wary of exporting to Malaysia as they do not wish to be embroiled and dragged into the ongoing saga and then risk their global reputation?

Stability takes many forms and one of these is linked to the exchange rate. Investors are in the business to make profits. They do not want to lose money because of widely fluctuating exchange rates.

Investors, both local and foreign may want to diversify and expand their markets. They want a skilled workforce, attractive tax initiatives and a government which offers relatively flexible policies which will help further their own development.

The choice of location to build their business, good infrastructure and a chance to capitalise on the workforce, are all important considerations for the investor.

The risk of investing in a country where the day-to-day operations may be scuppered by threats which are race or religion based cannot be overlooked. Time costs money.

Would they risk everything?

There are people who strongly believe that KK Mart, in particular its owner, KK Chai, would deliberately insult Islam by selling socks which have “Allah” imprinted on them. They are woefully naïve, or simple, or both.

Did it ever cross their minds that Chai and other non-Malay businessmen have plenty to worry about, rather than sow discord in the population? Malaysians are aware of the heightened sensitivities of many Muslims in Malaysia. The socks scandal has reached international shores and many foreigners wonder why a nation can be divided, and distracted, by five pairs of socks.

Chai took over 20 years to build his business. His hard work and sacrifice prompted him last year to think about listing his company on Bursa Malaysia. Why would he compromise his effort and investment by selling these controversial socks? Why should he commit business suicide?

Hence, to allege that he deliberately insulted Islam is misleading and erroneous. It gives the wider albeit ignorant sections of the public the wrong impression.

Undermining the workers

Chai would not dream of jeopardising the hard work of his team. Why would he endanger the lives of his workers? Why destroy his reputation? Why risk the safety of his employees? A happy workforce is a more productive company.

If it transpires that quality control was sorely lacking in the socks division, then Chai will have to improve on this, but to demand a boycott of KK Mart, will only undermine the employment prospects of his workforce.

These are difficult times. The cost of living crisis is not over. What Raya cheer will there be for his Muslim workers, if business drops, and KK Mart is forced to close some outlets, or lay off its workers?

Chai has already apologised for something which many of us believe he did not commit. It is hard to believe that he knowingly sold the controversial socks in order to “insult Islam”. Only a buffoon would dare to sell them during Ramadan, the most holy month in the Muslim calendar.

Spreading panic

The socks issue appeared fishy from the start but the damage caused by Umno Youth chief Dr Akmal Saleh’s rhetoric has only spread panic and confusion.

The calls to boycott KK Mart have caused more hatred and the arson attacks on KK Mart outlets are frightening. These have undermined the stability of both the government and the country. The business world in Malaysia is spooked.

To the extremists, violence is a means to an end; but violence in the name of any God, is wrong. - FMT

The views expressed are those of the writer and do not reflect those of MMKtT.