Lynas warned in 2011 of risks of not engaging local support
Lynas Malaysia had been warned in 2011 that it risked jeopardising its operations as it had not engaged"meaningfully” with local environmental concerns., Lynas received a confidential report in 2011 from Australian advisory firm Futureye, which stated that the company was in “urgent need” of winning local support for its operations.
The firm also warned that unless Lynas began engaging with locals immediately, this outrage would spiral out of its control. “If Lynas is convinced that its political support in Malaysia is so unwavering that it will withstand deep and broad community opposition, then outrage management should be at most a peripheral strategy, aimed at diminishing the reputational cost of a company-government partnership that has largely ignored stakeholder concerns and intends to continue to ignore them," the report read.
Futureye also issued a warning on relying on the administration of former prime minister Najib Abdul Razak, which had come under scrutiny for alleged corruption.
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