KUALA LUMPUR (Aug 7): The government is confident the initiatives to restructure FGV Holdings Bhd’s (FGV) board of directors and the steps taken to introduce the Strategic Plan 2020 (SP20) will rehabilitate and grow the group’s business and share price.
Deputy Economic Affairs Minister Dr Mohd Radzi Md Jidin said the initiatives will be able to rehabilitate the group in stages.
“This will also restore investor perception towards FGV and bring positive impact on the share price,” he said in the Dewan Rakyat today.
Mohd Radzi was responding to a question from Wan Hassan Mohd Ramli (PAS-Dungun) on the efforts of the government to revive the settler’s shareholdings in FGV for the original objective of raising their economic status.
He said the restructuring of the FGV board over the past several years have seen Felda, the largest shareholder, receiving two seats to look after its interests and those of the settlers.
The deputy minister said the board also included experts in the fields related to FGV’s business, among them Datuk Dr Salmiah Ahmad (research and development), Dr Mohamed Nazeeb P. Alithambi (agronomy), Datuk Mohd Anwar Yahya (auditor) and Dr Nesadurai Kalanithi (biochemist and molecular biologist).
“These measure will enhance the role of (corporate) governance and contributions from the board of directors in the group’s rehabilitation.
“Industry players and economic experts have been positive on these initiatives,” he said.
Meanwhile, Mohd Radzi said SP20 was expected to improve business operations and shape a more realistic direction for the group based on existing market conditions through four core pillars of effective core operations, improving business value chain, balancing the business portfolio, and optimising finance and human capital.
Among the strategic plan’s main targets will be increasing the production of fresh fruit bunches, lowering operation costs, sustainable replanting programmes, mechanisation of plantations, rationalising the number of factories and improved product marketing.
“SP20 also aims to grow the group’s oleochemical business and strengthen operations in the US and main export markets. It plans to expand the sugar business, dispose of non-core assets, reevaluate existing investments and joint-ventures, improve the logistic business’ portfolio and add value to shareholders,” he added.