REFLECTIONS FROM THE TOP SEC 3 24 Financial and Capability Building GROUP CHIEF EXECUTIVE OFFICER’S REVIEW During the review period, our Saji refined cooking oil maintained its position as the leading cooking oil brand in Malaysia with a market share of 44.7%. Despite increased competition, we successfully improved the market share of Seri Pelangi margarine to 49.0%. Moreover, our efforts to expand internationally in the oil and fats business achieved a 14% growth in export sales volume, amid the price drop. The appointment of 11 new regional distributors has also made significant positive impact with our local expansion programme in line with our Business Plan. As part of the Near Region Initiative under the Sugar business, we introduced a new 50 kg breakbulk product to enhance our penetration in the export market. In our Logistics operation, the Sahabat Bulking Installation has received approval from Bursa Securities to manage the Port Tank Installation for CPO. Product and Market Penetration In 2023, we launched several new products to address the evolving needs of our customers. These include the krimer pekat in various sizes, coconut cream reformulation, and ketupat mini under the Saji brand. Additionally, the introduction of Premium Gula Super, significantly contributed to the increase in domestic refined sugar sales volume. Expanding our offerings under the Bright Cow brand within the Dairy segment, we introduced Acerola Yoghurt in two flavours, pineapple and coconut gula melaka, and broadened our range of single-serve yoghurts with mango peach, mixed berries, and strawberry flavours. Furthermore, we enhanced our dairy lineup by introducing new options for Ultra High Temperature (UHT) milk, now available in full cream and chocolate flavours. New Growth Areas Our Palm Kernel Shell (PKS) operations have attained Green Gold Label certification, while our sludge palm oil has been certified by both the National Italian Scheme and the International Sustainability and Carbon Certification. These milestones affirm our commitment in promoting renewable energy sources to reduce our environmental footprint. The rectification of boiler issues in MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor) is expected to increase total refinery capacity utilisation, enhancing productivity and efficiency in our Sugar operation. We have also constructed a new warehouse with a 10,000 MT capacity, which aims to reduce external warehouse reliance and support operational enhancements at the MSM Johor. In our bid to further our sustainability commitments, we introduced our first 100% Electric Vehicle (EV) van for last-mile deliveries of our sugar products in the Klang Valley. We have also acquired 54 units of Euro 5 Prime Movers for general cargo and CPO tankers from Volvo Trucks Malaysia. These vehicles comply with rigorous international emission standards, promoting improved fuel economy and a cleaner fleet. These efforts support Malaysia’s 2050 carbon-neutral goal and reflect our continuous commitment to innovation, sustainability and operational excellence across our business. Strengthening Financial Sustainability In 2023, FGV upsized its Sukuk Murabahah programme to RM3.0 billion in nominal value. The proceeds have been utilised to fund the Group’s capital expenditure and working capital. Malaysian Rating Corporation Berhad has also assigned a rating of AA- with a stable outlook for FGV. Our sustainability endeavours play a pivotal role in fostering longterm financial stability and business resilience. This involves executing the 12 key areas under the WRO remediation plan. The formation of a Sustainability Steering Committee, chaired by myself, and the WRO Task Force underscores our commitment to oversee sustainability issues and working towards lifting the WRO suspension imposed by the US CBP. Furthermore, we advocate sustainability by encouraging stakeholders across our value chain to adopt similar practices. In addition, we are implementing our Climate Action Plan and expanding the sustainability certification programmes to the stakeholders to support our sustainability efforts. Regular assessments and audits ensured our practices met global standards and expectations. More information on FGV’s Sustainability Initiatives can be found in the Sustainability Report 2022/2023. Improving Employee Skills and Well-being We invested in ongoing learning and development to keep our workforce adaptable and proficient with industry trends and innovations. Employees are encouraged to contribute ideas for process improvement and efficiency gains. To attract and retain the right talent to drive our strategies forward, we undertook a compensation review to stay market-competitive and developed an Employer Value Proposition. Our succession planning now includes tailored learning, coaching and mentoring to strengthen the future leader pipeline. We are committed to Diversity, Equity, and Inclusion (DEI), especially in empowering women at work. This has led to a 2% rise in female representation at the middle management level. We are bringing in a consultant to support our Gender Equality and Women’s Empowerment (GEWE) Committee to develop and execute strategies for continued improvement in this area. Following an 81% Employee Engagement Survey (EES) score in our previous assessment, we have identified three key areas of improvement. These areas include resetting the organisational culture, integrating EES scores into management performance indicators, and implementing performancebased rewards and recognition programmes. These products are currently accessible in various modern trade and general trade outlets nationwide.
RkJQdWJsaXNoZXIy NDgzMzc=