01/04/2012 (The Inquirer) - Sime Darby, the multinational Malaysian company which signed a 63-year concessional agreement with Liberia has promised to operate in the country with what it called “best practices” and adherence to “specific quality” to ensure the success of its operation.
 
Giving a presentation when a group of Liberian journalists visited the company's facilities in Malaysia last week, Mr. Mustamir Mohamed, head of Strategy and Business Development said the company remains committed to working for the Liberian project as it is a major focus on the continent. He said this will be done by training more Liberians to manage the project.
 
He said the Sime Darby project in Liberia is a “big investment” as if it is not done the right way; this might be a loss to the country.
 
He said the company is carrying out its planting “progressively” in Liberia and that the commitment of the company can be seen from what it is engaging in by operating a school, clinics, housing units and the provision of buses. He said all of those are part of the development plan of the company for the country, adding, that the company wants the people to “see something immediately.”
 
Asked whether the company was contemplating engaging in similar agreement in brother African countries, Mr. Mohamed said presently the company is concentrating on Liberia for a success story.

He said there is possibility to establish this in other African countries, but pointed out that for now, Liberia is the focus.Earlier; an expert and consultant on palm oil, Mr. Syed Mahdhar who gave the palm oil benefits and contribution to the Malaysian economy, said the industry is contributing immensely to the economy of that country. He said the industry contributes about five to six percent of Malaysian Gross Domestic Product (GDP) and provides employment to 1.4 million workers in the related industry.

Of this, Sime Darby is listed as one of Malaysia's largest companies in terms of market capitalization in the tune of US$17.6bn, as of 20 January 2012. It has a workforce of 1000,000.

On the controversy of land, the expert said this is not unique to Liberia. But he pointed out that in doing so, one must be clear and transparent, as there should be no need for 'cheating.' He added that in such situation, there should be proper education as this is the best way the change of mind can be set. He said this should be approached from a win-win situation. Mr. Mahadhar likened this to marriage where there must be “mutual agreement.”

The palm oil expert who traced the plant from West Africa, said Liberia has the capacity and wealth and should look at it from “food security,” as palm oil is the “most productive oil.” He said it is a small holders business. He said it eradicates poverty and narrow income gap between town and rural dwellers.   

In 2009 the government of Liberia and the company signed a concession agreement that covers 220,000 hectares of land in Bomi, Gbarpolu, Bong and Grand Cape Mount Counties, to grow 80% Oil Palm and 20% Rubber crops. Following this, it has utilized 1,180 hectares of land to oil palm development area, but has reestablished its nursery comprising of 1.4 million seedlings already waiting to be planted.

Even though it hasn't started reaping dividends of the initial investment, the company speaks to the fact that its investment spending has hit some US$35 million plus, but looks into the future with hopes of investing 3.1 Billion within fifteen years. This venture does have visible structures in place; where housing complexes are being established.

As a development structure put into perspective, out of every 3, 500 hectares, 3,000 will be used to establish crops development area; whereas, 500 hectares will be set aside for housing units for the workforce. 

The company began its first operation in Grand Cape Mount and is right now hoping to clear old rubber trees planted by the B.F. Goodrich and Guthrie Rubber Plantation in Bomi where it can move the 1.4 nursery seedlings into the fields for planting.

Presently, it caters to both employees and contract workers along with their dependents, as well as residents in the Project Affected Communities (PAC) when it comes to getting treated for various curable illnesses. And all these are being done at three clinics in the local communities, with one on the Plantation Bomi Estate (Married Camp), one at Lofa Estate and the other at Nimba Point.

Construction works for the first estate at 'Mantabo' which is still being carried out does form part of the company's monthly expenditure; along with the clinics, salary issues for 2, 700 employees and contract workers.

Sime Darby is a wholly-owned subsidiary of the Sime Darby Group, one of Southeast Asia's largest multinational conglomerates. Based in Malaysia, the Sime Darby Group operates more than 600 companies in 22 countries around the world and employs about 100,000 people. It has Oil Palm plantations in both Malaysia and Indonesia with a total area of more than 500,000 hectares.