Our Strong Leadership Paves The Way 28 FGV HOLDINGS BERHAD Dato’ Mohd Nazrul Izam Mansor Group Chief Executive Officer STEPPING INTO A NEW FUTURE As we look ahead to 2023, I am cautiously optimistic regarding FGV’s performance as we have built good momentum over the past two years with many of our ongoing initiatives already yielding results. While the global economic outlook remains uncertain, Malaysia’s economy is anticipated to record moderate growth of 4% to 5%, supported by palm oil prices that are expected to remain rangebound. THE MOST IMPORTANT DEVELOPMENT FOR FGV GOING FORWARD IS TO STRENGTHEN AND IMPROVE OUR CORE PLANTATION BUSINESS AND, AT THE SAME TIME, TO BEGIN MAKING INROADS DOWNSTREAM IN PARTICULAR CONSUMER BUSINESS. The plan outlines a strategy that combines both organic and inorganic growth initiatives, aimed at safeguarding our core business while seizing new opportunities in all the businesses we are present in. This strategy is also underpinned by several key commitments, including modification of WRO issued by the US CBP, striving for RSPO certification of all 67 of FGV’s mills and its supply base, and our ambition to achieve net zero emissions. We are fully committed to achieve our goal of becoming a leader in research and development, continuously striving to improve our products and enhance our technologies, while also pioneering gender equality and diversity in the plantation industry. With regards to the outlook for our various business sectors, it will be both an exciting and demanding time for our employees as we implement the various strategies under BP25. Our Upstream business will be focused on improving yields, mill modernisation, bringing our manpower back to full strength and beyond, as well as accelerating replanting which fell behind during the pandemic. Also, in support of BP25, the Research & Development (R&D) Division will help create innovations to generate new revenue streams through agriproducts, high-value crops and consumer products beyond oils and fats. The Downstream and Sugar businesses will continue their market growth and product expansion both domestically and internationally, while focusing on driving operational improvements. Our Sugar Sector in particular, is expected to achieve a greater utilisation factor as MSM Johor ramps up its production in 2023. Our Logistics business will capitalise on new growth opportunities while we continue to explore opportunities present in Malaysia’s expanding food market. In terms of our ESG efforts, our Renewable Energy Division continues to search for more ways to contribute towards FGV’s decarbonisation efforts such as the circular economy and wasteto-wealth initiatives. We will also strive to modify the WRO issued Group Chief Executive Officer’s Review by the US CBP as we are currently implementing a remediation plan based on the independent assessor’s assessment. We anticipate submitting the final report to the US CBP soon. Furthermore, we will continue to obtain RSPO certification for our uncertified mills, which have completed all necessary preparations and are ready to commence the certification audit. ACKNOWLEDGEMENTS In conclusion, I would like to extend my gratitude to the Board of Directors for their wisdom and guidance, which have contributed to FGV’s outstanding performance this year. I would also like to sincerely thank Dato’ Dzulkifli Abd Wahab for his leadership and dedication during his tenure as Chairman of FGV. I express my gratitude to FELDA and other shareholders, customers, supplier, state governments and ministries for their loyalty, trust and support, which have made our achievements possible. To all FELDA settlers, suppliers and independent smallholders, thank you for your continued commitment to our long-standing partnership. It is our ability to work together and support each other that will help to produce win-win outcomes for the benefit of all stakeholders. I would also like to thank our dedicated employees and my Management Team, who have worked hard to meet our targets and drive our business forward. None of this would have been possible without your dedicated and sustained efforts. Terima Kasih! Looking ahead, we are advancing responsibly and we remain committed to future-proof our business by embedding all aspects of sustainability to build a better tomorrow.
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