MARKET DEVELOPMENT
Felda is Committed to Sustainable Palm Oil Business
Felda is Committed to Sustainable Palm Oil Business
24/12/2013 (The Star) - The Felda Group, the world’s largest oil palm plantation operator comprising 500,000ha of settler-owned land managed by the Federal Land Development Authority (Felda) and 360,000ha operated by Felda Global Ventures Holdings Bhd (FGV), remains committed to sustainable practices in its palm oil business.
In a statement yesterday, FGV president and chief executive officer Mohd Emir Mavani Abdullah said FGV appreciated sustainability as a holistic concept, which encompasses three key elements – the people, the planet and profits.
“For this, we strive to strike a holistic balance between the social, environmental and economic needs of the country and the people. This is achieved by addressing the necessity for social development of the people, conservation and management of the environment, and ensuring progress of the nation as a whole via economic development.”
The group said the success of the Felda scheme had helped eradicate poverty. The group has efficaciously ensured that the income levels of the scheme’s settlers have remained well above the national poverty line. As a result, the national poverty rate has been reduced from 60% in 1956 to less than 3% today.
Through the Felda Investment Cooperative that was established in 1980, profits from the business accrued to the shareholders were eventually distributed to the settler members as dividends, at an average of 15% per annum.
Further growth in the business of FGV has enabled the group to provide employment for 23,000 people and provide sustenance to about two million people. A fifth of Felda’s employees are settler descendants.
Felda, as the major shareholder of a 38% stake in FGV, set up the Settlers Trust Fund with 20% of its total shareholding. The 112,635 settlers remain the biggest beneficiaries of this trust fund, and although the shares are owned by Felda, any cash dividends declared with respect to the 20%, or 730 million shares, will accrue to settlers.
Where profits are concerned, the Felda Group has been recording profitability from as far back as the late 1980s when its plantation operations began to reap profits.
“FGV, set up in 2007 and listed on Bursa Malaysia in 2012, has been sustainably profitable. Most recently, we achieved a 77% higher pre-tax profit for the second quarter ended June 30, 2013 compared to the corresponding quarter of 2012,” Emir said.
“FGV’s commitment to sustainable development resonates with the Felda Group’s commitment to developing a sustainable future. We believe there is no alternative to sustainable development, and thus, are committed to a journey of continuous sustainability,” he added.
In a statement yesterday, FGV president and chief executive officer Mohd Emir Mavani Abdullah said FGV appreciated sustainability as a holistic concept, which encompasses three key elements – the people, the planet and profits.
“For this, we strive to strike a holistic balance between the social, environmental and economic needs of the country and the people. This is achieved by addressing the necessity for social development of the people, conservation and management of the environment, and ensuring progress of the nation as a whole via economic development.”
The group said the success of the Felda scheme had helped eradicate poverty. The group has efficaciously ensured that the income levels of the scheme’s settlers have remained well above the national poverty line. As a result, the national poverty rate has been reduced from 60% in 1956 to less than 3% today.
Through the Felda Investment Cooperative that was established in 1980, profits from the business accrued to the shareholders were eventually distributed to the settler members as dividends, at an average of 15% per annum.
Further growth in the business of FGV has enabled the group to provide employment for 23,000 people and provide sustenance to about two million people. A fifth of Felda’s employees are settler descendants.
Felda, as the major shareholder of a 38% stake in FGV, set up the Settlers Trust Fund with 20% of its total shareholding. The 112,635 settlers remain the biggest beneficiaries of this trust fund, and although the shares are owned by Felda, any cash dividends declared with respect to the 20%, or 730 million shares, will accrue to settlers.
Where profits are concerned, the Felda Group has been recording profitability from as far back as the late 1980s when its plantation operations began to reap profits.
“FGV, set up in 2007 and listed on Bursa Malaysia in 2012, has been sustainably profitable. Most recently, we achieved a 77% higher pre-tax profit for the second quarter ended June 30, 2013 compared to the corresponding quarter of 2012,” Emir said.
“FGV’s commitment to sustainable development resonates with the Felda Group’s commitment to developing a sustainable future. We believe there is no alternative to sustainable development, and thus, are committed to a journey of continuous sustainability,” he added.