FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 53 Outlook In line with the objectives of BP26, our focus is on implementing strategic initiatives to address current challenges and capitalise on opportunities. Key efforts include executing the Withhold Release Order (WRO) Remediation Plan, allocating a three-year project valued at RM605 million to improve worker accommodation, essential for compliance and worker welfare. Another priority is enhancing yield by closely monitoring crop harvesting, ensuring the suitability of planting materials to site conditions; reducing losses from pest and disease damage, and implementing Good Agricultural Practices (GAP). To achieve the targeted man-to-land ratio of 1:12, we will extend our mechanisation programme by utilising power barrows in hilly areas for FFB evacuation, anticipating significant productivity boosts. The replanting programme will be focused on correcting age profile and implementing precision agriculture techniques. A key objective is to improve the OER by enhancing mill process efficiency and process control, and maximising oil extraction from harvested FFB. Central to these plans is enhancing our labour strategy with the aim to reach 110% workforce strength. We are looking at accelerating the end-to-end recruitment process and implementing measures to improve living conditions for workers. We are focusing on recruiting migrant workers from India and Indonesia, as well as local workers at targeted locations in FELDA settlement areas and villages. Sustainability remains a top priority for FGV, as we integrate Environmental, Social and Governance (ESG) principles into our mill operations and adhere strictly to Clean Air Regulations, affirming our commitment to responsible plantation management. We will continue to expand our FFB supplier base while prioritising sustainability compliance. To ensure adherence to sustainability practices across our supply chain, we will provide capacity-building support and share best practices with FFB suppliers and dealers. Replanting remains a high priority for maintaining the productivity and sustainability of our plantations. In the reviewed year, we achieved felling of 16,547 Ha and replanted 19,862 Ha. We also applied 275,570 MT of fertiliser, covering 90% of the annual manuring programme. Despite facing numerous challenges in the replanting process, we are tackling these issues through our annual replanting work programme. This comprehensive initiative involves expanding the network of replanting vendors and implementing measures such as installing electric fencing and elephant trenches, among others. V Number of Estate Workers 27,946 Harvester: 11,098 General workers: 15,954 Others: 894 GROUP BUSINESS REVIEW Total Replanted Area 19,862 Ha (2022: 3,232 Ha) Average Oil Palm Age Profile 12.77 years (2022: 13.65 years) We have invested in mechanising harvesting and collection activities to boost efficiency and reduce labour dependence. In 2023, we continued the Mechanical Assisted Infield Collection (MAIC) using power barrows in hilly terrain, covering 20,000 Ha. Moreover, we are planning to extend mechanisation to include non-harvesting tasks, aligning with our commitment to achieving the targeted man-to-land ratio. On the labour management front, we temporarily halted the recruitment process in the third quarter of 2023 to further enhance our sustainability practices in source countries. This pause ensures that our recruitment aligns with the highest sustainability standards and FGV’s commitment to a ‘Zero Recruitment Fees’ policy. As a result of this initiative, a few recruitment agencies were suspended due to their failure to meet these stringent standards. By the end of 2023, we had reached 84% of our targeted workforce strength. Despite this, we observed a notable decrease in both abscondments and repatriations during this period, achieving approximately 94% labour strength in the Peninsular area. During the review period, FGV completed the reimbursement of recruitment fees to 20,153 active migrant workers with payments made in March, June, and September 2023, amounting to RM72.2 million. An appointed third-party assessor is currently conducting a verification assessment to review the implementation of FGV’s overall remediation plan.
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