By Aidila Razak
Who’s afraid of gunmen hiding in plantations? Clearly not the planters. In fact, as the fighting continues in the eastern tip of Sabah, oil palm planters and refiners say it is business as usual.
But it is best not to tempt fate. So in response to a Reuters article claiming that Lahad Datu refiners were preparing to shut down they say they are “monitoring the situation”.
On the other hand, Felda Global Ventures, whose mammoth 95,542-ha plantation Felda Sahabat is ground zero for part of the hostilities, has forced 10,000 of its staff to go on leave.
Even then, analysts say there’s nothing to worry about.
“It’s only a few hundred militants in a limited portion of the plantation. Unless you tell me there are thousands of militants now taking over the plantations, I believe it will be contained soon, and will hardly have an impact on an entire group’s earnings,” one analyst said.
The analyst in not alone. Research houses Maybank Investment, CIMB Research and AmResearch are similarly bullish.
The rest of us reading headlines of gunfights and bombs may be whipped into a patriotic frenzy, but not those rational, pragmatic business types. Nevermind the conflict nearby, the business community may as well be on an island in the sun.
Sipadan , Sabah
Speaking of islands in the sun, did you know that the islands in Sabah are still safe for your frolicking fun? That includes world-class dive spot Sipadan, just off Semporna where a dozen men were killed in the hostilities last Sunday.
The United States and the United Kingdom have issued warnings against nonessential travel to the east coast of Sabah but the Sabah Tourism Council says everything’s a-okay. Dive centres agree. As late as Tuesday, tourists were still heading out for dives.
What else can you do when you’re stuck near a conflict zone? Enjoy the sun and sea.
What this means for the Sabah tourism industry in the longer term remains to be seen. International Trade and Industry Minister Mustapa Mohamad expects it to be “slightly affected”.
Maybe tourists will soon forget the incident as they did the kidnapping of 21 of their fellow travelers from Sipadan by the Abu Sayyaf in 2000. Maybe those planning to build beach resorts in this part of Malaysia long-dubbed the ‘Wild East’ would soon forget the Lahad Datu standoff, too.
Elsewhere, in the world of markets, cool heads find it harder to prevail. Election jitters have been the mood du jour for a couple of months now.
It appears that nothing seems scarier to investors than the thought of a change of government. The more level-headed of pundits say that this is an unlikely outcome, but the more likely scenario is still putting investors in a spin.
Campaigning on a message of change, Pakatan Rakyat is tipped to shave off a little bit more of the ever-victorious BN’s winning majority. Analysts say if 2008—when BN lost two-thirds majority–is anything to go by, investors can look forward to a splitting headache.
And in the world of business and markets, this is scarier than a foreign guerilla army waiting in the bush.
You must be logged in to post a comment.