FELDA’s social development programme, in the last 50 years, laid the foundation for the business growth and via FGV the seeds of growth for the next 50 years are being sown.
Robust protocols have been put in place to ensure we continue to develop a profitable business model. To meet these targets, FGV has come up with a four-step roadmap. The initial thrusts of this roadmap are to further optimise existing businesses and partnerships in the first three years.
FGV, early this year, adopted a new business model upon signing a land lease agreement (LLA) with Felda to lease 355,864 hectares of plantation estate in Malaysia for up to 99 years. The deal not only made FGV the world’s largest oil palm planter but gave it control over cost of fertiliser application and replanting of estates. This means that we are now able to directly drive improvements in its operational efficiency.
Under the plan, FGV aims to position itself as a global leader in palm, top three in rubber and sugar and top three in the industrial fats segment.
To fast track this, mergers and acquisitions are being pursued with opportunities in South-East Asia and Africa being reviewed for upstream expansion. Where possible, we hope to replicate the unique Felda scheme in countries like West Africa, Myanmar and Cambodia.
We are also improving our operational efficiency and going on an aggressive replanting programme to replace mature oil palm trees, while being on the lookout for available estates with younger aged palm profiles.
Another key area in FGV’s vision to be a global leader is the transformation of our people. FGV has identified the need to attract, nurture and retain talent as one of our core tasks in moving onwards. We are engaging greater diversity in the talent pool and putting in place well planned development programmes to become a breeding ground for agri-leaders.