FGV Annual Integrated Report 2019

71 ANNUAL INTEGRATED REPORT 2019 03 S E C T I O N YSP OBJECTIVES: Young Shapers Programme FGV introduced the Young Shapers Programme (YSP), an initiative that is expected to positively impact the Group. Launched in May 2019, the YSP will develop and drive a group of young talents, aged 35 and under, to create a culture of performance excellence. A total of 36 Shapers have completed the six-month programme, which consisted of five modules and involved creating and presenting a project paper while receiving pointers and guidance from the Group’s Senior Management. The indirect skill sets acquired by the YSP candidates through this experience included business communication skills and thinking skills. At the conclusion of the programme, 15 Shapers were awarded scholarships by Asia Metropolitan University to pursue the Executive Master in Business Administration (MBA). We are optimistic about the results and plan to organise this programme again in the future. BUILDING FOR THE FUTURE Scholarships FGV continues to prepare for the future by grooming leaders of tomorrow and nurturing potential talents for the Group. Since 2006, we have awarded scholarships to deserving students to pursue their A-levels. The scholarships are further extended to cover their degree programmes in the United Kingdom should they meet the requirements set by the Group. We currently support 34 scholars locally and overseas through our Scholarship Programme and now have 51 recipients serving the Group. Worker Requirement and Retention As of December 2019, FGV employed a total of 31,074 migrant workers, mainly from Indonesia, Bangladesh and India, which was approximately 85% of our full worker requirement. We have until April 2020 to fully utilise our workers quota issued by the government. In line with the RSPO’s initiative for worker welfare and human rights, we provide our workers with the required living standards in compliance with the Workers’ Minimum Standards of Housing and Amenities Act 1990. As of end- 2019, we completed 319 blocks of workers' housing. In keeping with our commitment to respect workers’ rights, 130 estates in Peninsular Malaysia, Sabah and Sarawak are installed with safety boxes where workers can keep, and have access to, their passports at all times. • To equip participants with practical knowledge of project management. • To enhance participants with leadership in project management. • To prepare participants to be future project leaders with strategic thinking and business acumen. • To produce game-changing business improvements for FGV. Cost Optimisation In 2019, FGV successfully conducted a review of employee benefit policies with the view of optimising them from a cost perspective given the exacting business challenges faced by FGV. The review also ensured that benefits remained competitive and complied with relevant laws and regulations. The revisions were approved by the Board on 9 December 2019 and took effect from 1 January 2020. FGV also carried out a Special Mutual Separation Scheme with the aim of optimising manpower, improving efficiency and increasing productivity of employees. This exercise also included retrenchment due to divestment of non-core businesses. In total, 1,377 employees left the organisation though this scheme. In line with our manpower cost rationalisation initiative, the total number of employees is now 17,104. The turnover recorded for 2019 was 15.1%. As a result, the Group was able to reduce staff cost by 7.1% in 2019 compared to 2018. MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS