The Edge Markets (06/03/2018) - KUALA LUMPUR (March 6): Felda Global Ventures Holdings Bhd (FGV) group president and chief executive officer Datuk Zakaria Arshad said today Malaysia should focus on other markets instead of focusing too much on the European Union (EU) market as the bloc moves to back a ban on using palm oil to make biofuels from 2021.

Zakaria said while Europe is a big palm oil export destination, FGV's exposure to the European market is only about 2% of its total revenue.

FGV is not dependent on a single market, he noted, adding that the group plans to expand into new markets and new products. Hence, spreading out its risks.

"The EU should have a proper discussion (with palm oil players) on its environmental concerns," he told reporters on the sidelines of the 29th Palm and Lauric Oils Conference and exhibition here today.

Zakaria believes that the EU ban on palm oil in biofuels is more for commercial reason, that is, to protect the bloc’s own industry rather than for environmental reasons.

He is also of the view that the impact of India's move to raise its palm oil import tax to the highest in more than a decade will be “temporary” on FGV.

"We are looking to focus on other countries such as Pakistan, Myanmar and China," he said.

He added that the group is now growing its presence and market share in Pakistan and Myanmar.

Zakaria noted that FGV has a lot of “potential” in Pakistan, explaining that the group has a refinery there, and it is among the biggest exporters into Pakistan.

It has been five years since FGV penetrated into Pakistan, and the market now contributes about 20% to 30% to its total revenue — making it one of FGV’s major customers.

Moving forward, Zakaria said the group plans to produce downstream products there.

FGV shares closed down one sen or 0.53% at RM1.89 today, with 4.75 million shares done, bringing it a market capitalisation of RM6.9 billion.

Read more at http://www.theedgemarkets.com/article/fgv-can-survive-without-eu-market