15/06/2013 (The Star) - Sime Darby Bhd is unlikely to demerge any of its core businesses anytime soon, said Sime Darby executive vice president group strategy & business development Alan Hamzah.

“It is not something you can rush into. If you look at crude palm oil (CPO) prices as well as the weak economic environment today it is not a great time to do this exercise,” he told reporters on the sidelines of Invest Malaysia 2013 on Friday.

Alan said the plantations-to-property group plans to spin off its key divisions when the time was right.

“We will consider this more closely over the next six months. Right now it is difficult to determine which division will go first and which will go last,” he added.

Alan said CPO prices would range between RM2,400 to RM2,600 in the second half of the year.

“It is difficult to estimate where CPO prices will go. CPO doesn't seem to follow fundamentals. This is something that puzzles us,” Alan said.

“There are many catalysts however, such as Ramadhan, which will push up demand and lower the stockpile,” he added.

Alan said the company is eyeing more landbank in Africa and South America.

"But we have to be careful and sensitive to the need of the government and the people there," he explained.

He added that the company was mulling over a third crop, for instance sugar, but would likely keep its focus on palm oil and rubber.

On its operations in Liberia, Alan said the company faced some bad press from non-governmental organisations but this was managable.

"The Liberian government is very supportive of our operation and at the moment we have started planting on 10,000ha," he said.