17/05/2010 (Bernama), Kuala Terengganu - TDM Bhd, a Terengganu state government owned company is planning on raising the production capacity of each hectare of palm oil estate owned by it to raise the company's profit level.

Its Chief Executive Officer, Badrul Hisham Mahari said, as part of its plan, the company will bring down the cost of producing per tonne of fresh fruit bunches and also expand its land ownership from the current 35,000 hectares in Terengganu.

"Towards this, our focus will be to work the oil palm plantations in Kalimantan where 700 hectares have already been planted with oil palm while by end of the year, the planted area will cover 2,000 hectares.

"We are aiming to increase our plantation acreage while reducing the cost of production," he said at a press conference following the company's annual general meeting here on Monday. Also present was TDM Chairman, Senator Datuk Roslan Awang Chik.

Badrul Hisham said while the company had been offered land measuring 40,000 hectares in Kalimantan, it would only develop between 20,000 hectares and 25,000 hectares over a 15-year period with production expected for 25 to 30 years.

"This is because the 40,000 hectares of land offered include marshland, areas containing coal, gold and others which would be partly taken back by the government," he said.

On its medical services business, he said it was also expanding and currently had three specialist hospitals, namely Kelana Jaya Medical Centre, Kuantan Medical Centre and the Kuala Terengganu Specialist Hospital.

Roslan said TDM was also paying attention to the health business in view of the demand for medical services.

The company, despite the uncertain and challenging world economy and domestic market, recorded a pre-tax profit of RM77.49 million for 2009. Its plantation sector contributed 79 per cent of the income.