GRANTED, according to Maybank that Cahya Mata Sarawak one of the biggest if not the biggest home bred conglomerate in the state has a poor corporate Environmental, Social and Governance score.
MY response to the entire piece of report is so what? What has this got to do with a potential investor wanting to invest in the company?
A lot actually, but the Malaysian investors are being blindsided because research house such as Maybank are not placing a Ringgit value to what can potentially happen to Cahya Mata shares if compliance remain low.
WHY is it important to place a Ringgit value on non compliance of the corporate ESG/Madani framework? Because the laws in the Western World are being changed to accommodate this framework. READ : Firms will be fined in Germany if they do not have a complete ESG framework.
YES, we won't be able to do business in most parts of Europe or even China, if we do not meet the requirements of the ESG framework.
RESEARCH house' should stop treating ESG as some type of new religion but address it for what is, a new form of capitalism.
