academy of science show of support for lynas, page-14

"Would siemens really want to set up shop after the issue of the tol? Maybe after the POL but no the TOL, thats 2 years of rubbish and perhaps the POL will never see the light of day. Why would Siemens want risk building a factory next to an idle lamp in 2 years time!!
Its a huge risk to assume it will all be plain sailing. I really hope it is and im long but if i was about to set up another million dollar business i doubt it.
I think malaysia has shot itself in the foot."


my initial reaction would be to wholeheartedly agree with you (as any right minded logical and rational person would) however on deeper contemplation, there are very serious caveats.

having observed the malaysia political dynamics for years, am of the opinion that the ruling political powers may not care about implications of their actions outside of the country as long as they remain in power to lord over the local population and are able to further their own personal agendas.

notice that the last aelb presentation was done in a mish-mash of english and malay? certainly not geared for foreign consumption so wasnt done to ensure that the foreign investment community is put at ease and properly informed as well.

google cost over-runs for pkfz and klia2, various other scandals involving government-linked-companies (GLCs), bank negara GBP forex scandal, uproar with the Felda Global Ventures IPO as to how its been structured and promoted - all these involve eye-watering amounts of money (hundreds of millions or even billions) that's been insinuated as having been wasted or have been/being covertly and dubiously directed elsewhere (malaysian public's money).

since protection of the malaysian public's money is not the primary concern of the politicians, there's zero chance of any urgency being put towards the issuance of the TOL and eventual POL to ease the financial implications of the delays on LYC.

having said all that, i still think the license will eventually be issued but at much greater cost to LYC than management had every envisioned.