FGV HOLDINGS BERHAD | ANNUAL INTEGRATED REPORT 2023 59 GROUP BUSINESS REVIEW Outlook We remain cautiously optimistic that the global market will return to a more stable environment, especially in our focus markets of Middle East North Africa (MENA) and Emerging Asian countries in the coming years. On a longer term perspective, these markets are poised for above-average growth compared to the global average driven by rising income, positive population growth and shifts in food consumption patterns towards value-for-money products. Palm-based oils and fats products will remain a cost-effective alternative and are expected to see continued robust global demand growth of above 3% for the next few years. Our focus is on strategic market expansion and product diversification supported by a strong innovation culture and commitment to sustainability practices. We will continue to drive sustainability efforts in line with the Group’s Sustainability aspiration. In line with that, we have have embarked on the Resource Efficiency and Industry Symbiosis (REISO) initiative, aiming to minimise environmental impacts through resource minimisation and by-product reutilisation. We have completed assessments at our refineries across Malaysia, marking our commitment to environmental responsibility in operations. 2023 Initiatives • Acceleration of vegetable oil processing to strengthen our position as a leading vegetable-based oleo producer via the Hydrogenation Expansion Project at FGV’s oleochemical plan in US. Having halal and kosher products portfolio will allow TRT to expand into the food and personal care markets • Expansion of PKE locally to achieve growth in local PKE sales • Installation of the 750-fractionation plant to enhance production capabilities for high-margin product lines Oils and Fats Sales Volume (Million MT) 0.39 0.40 0.39 2023 2022 2021 Biodiesel Sales Volume (MT) 83,776 77,479 66,479 2023 2022 2021 Oleochemical Sales Volume (Million lbs) 263 282 326 2023 2022 2021 KEY GROWTH DRIVERS Operational Excellence Strengthening mid-office capabilities and employing automation and AI for predictive planning and operational optimisation Geographic Expansion 1 High-Value Products 2 Strategic Partnership 3 Product Development 4 Targeting high-growth markets in MENA and the US, while reinforcing brand presence in Southeast Asia and the Middle East Developing specialty fats such as cocoa butter substitutes and high iodine value products, and targeting the oleochemical market in the US with a focus on halal and kosher products Exploring strategic partnerships through joint ventures and mergers and acquisitions as growth catalysts, including collaborations for capacity expansion and acquisitions in Southeast Asia Prioritising new product development in oils and fats and animal feeds sectors 5
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