FGV Annual Report 2020

In Conversation with Group Chief Executive Officer Q 10 What is your outlook and prospects for the Year 2021? With the ongoing COVID-19 pandemic, it is hard to predict the outlook for next year. However, there is cause for optimismwith forecasts of CPO prices hovering above RM3,000/ MT next year. Equally encouraging are the weather conditions that have resulted in improved harvests, after a 4% contraction of FFB in 2020. These gains, however, can be affected by reduced demand from the hospitality, restaurant and catering industry (HoReCa) should the COVID-19 pandemic continue. For FGV, HoReCa customers are a significant market for our palm oil and consumer products. Post pandemic, I am confident FGV will be well positioned to benefit from the development of our Consumer Products, Integrated Farming and Renewable Energy businesses. They are market-driven businesses and not subject to commodity price volatility. For our plantations, we will continue to address sustainability matters that are vital to meet our CSPO production targets. Based on our current momentum, we are committed to achieve 100% Traceability to Plantations by our mills in 2021. We also look forward to the renewal of our RSPO certification schedule and the lifting of restrictions on our exports by the US Customs and Border Protection. Additionally, as part of our commitment to address climate change, we are making efforts and initiatives to minimise our environmental impact which includes the development of Greenhouse Gas (GHG) inventory. 46 FGV HOLDINGS BERHAD Annual Integrated Report 2020