Our Strong Leadership Paves The Way ANNUAL INTEGRATED REPORT 2022 23 Chairman’s Statement BUILDING A SUSTAINABLE FUTURE Looking ahead, we are cautiously optimistic about the global outlook, especially with a recession looming, persistent inflationary effects and ongoing geopolitical uncertainties. Global GDP is expected to moderate to 2.7% in 2023, while Malaysia’s GDP growth is forecast at 4% to 5%, according to the Ministry of Finance. The palm oil sector is, however, expected to remain resilient despite expectations of the CPO price softening to around RM4,000 per MT in 2023. For the Group, besides ongoing productivity and efficiency improvements in the Upstream business, we will continue to leverage our research and development capabilities to enhance existing processes, create new revenue streams and product offerings. Our Downstream and Sugar businesses will prioritise operational excellence initiatives while penetrating new markets and business channels. Meanwhile, our Logistics business will continue to expand capacity and utilise technology to serve customers effectively. Lastly, we will explore other segments which we believe hold great potential for FGV, especially given the existing capabilities and assets that we possess. We also have a strong pipeline of ESG initiatives lined up which include developing a Greenhouse Gas (GHG) inventory and reduction plan in line with our net zero ambition, alongside other programmes to reduce our impact on the environment. In the social context, we will formally adopt policies on respecting and protecting child rights as well as gender equality and women’s empowerment. We will also strive to have the Withhold Release Order (WRO) issues by the United States (US) Customs and Border Protection (CBP) modified. Our independent assessor has concluded its on-site assessment, and we are currently implementing its recommendations and anticipate submitting the final report to the US CBP soon. Effective governance practices are critical for the success and sustainability of FGV. The formation of a Risk Management Committee is one of the steps towards achieving this goal, as it provides oversight and assistance in identifying and managing potential risks as well as promoting greater transparency and accountability. In addition, we continuously review our policies to ensure compliance with current laws and guidelines. We are also set to conduct a recertification audit for SIRIM Berhad’s ISO 37001. These measures demonstrate a commitment to responsible and effective governance, which can ultimately benefit both the Company and its stakeholders. Bronze medal in Integrity, Governance & Anti-Bribery Award 2022 from Institut Integriti Malaysia Strongest Adherence to Corporate Governance 2021 category at Alpha Southeast Asia’s 12th Annual Institutional Investor Awards ASEAN Corporate Governance Disclosure Award 2021 and ASEAN Asset Class Award 2021 based on the Minority Shareholder Watch Group ASEAN Corporate Governance Scorecard From an overall sustainability perspective, we will advocate shared responsibility in promoting sustainability. We believe that all stakeholders have a role to play, especially the government, which can facilitate the creation of an enabling environment for sustainability to be embedded in business operations. This is where FGV will continue engaging with the government to introduce more ESG-friendly incentives and policies, while forging new relationships with relevant parties to address environmental, social and other sustainability issues. IN APPRECIATION As we advance responsibly, our achievements are attributed to the efforts of many, including the past and present Board of Directors. On behalf of Warga FGV, I would like to extend our heartfelt gratitude to our former Chairman, Dato’ Dzulkifli Abd Wahab, who handed over the reins to me on 1 April 2023, after two years of exceptional service at FGV. We wish him every success in his future endeavours and appreciate his unwavering commitment and dedication to the growth and success of FGV. Dato’ Dzulkifli’s visionary strategies and insightful guidance have played a crucial role in shaping our corporate culture, fostering innovation and driving sustainable growth. It has been an immense honour for all of us at FGV to have had the opportunity to work with Dato’ Dzulkifli. I am deeply grateful to have been entrusted with the responsibility of continuing the invaluable legacy left by Dato’ Dzulkifli, and will devote my utmost commitment to lead and steer FGV forward. I would like to take this opportunity to express my gratitude to our Non-Executive Director, Datuk Dr. Zunika Mohamed, who served with us until 11 March 2022. I also warmly welcome two new Non-Executive Directors who have joined the Board, Datuk Yatimah Sarjiman who joined us on 8 April 2022, and Encik Azmin Che Yusoff on 13 September 2022. The Board now has a total of eight Directors, three of whom are women, upholding the best practices outlined in the Malaysian Code on Corporate Governance. Our Board members bring a wide range of skills, capabilities and depth of experience that will hold FGV in good stead going forward. I would also like to extend my sincere appreciation to my fellow Board Members for their immeasurable support, guidance and foresight. To the FGV Management Team and employees, thank you for your relentless dedication and commitment towards achieving our vision, and your efforts to reflect our PRIDE values. It is you, our employees, who have enabled FGV to record its historic achievement this year and I hope that you will continue to execute your duties to the best of your abilities. Lastly, I would like to extend my appreciation to the Federal Land Development Authority (FELDA) and its settlers, and our valued stakeholders; Thank you for your trust, loyalty and belief in us. We look forward to achieving more and capitalising on present opportunities to pave a brighter tomorrow for everyone. Dato’ Shahrol Anuwar Sarman Chairman (Interim)
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