64 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION MITIGATING THE YEAR’S CHALLENGES Challenges Action plans Outcomes COVID-19 disruptions resulting in supply chain inefficiencies and production disruptions • Established a COVID-19 task force to ensure stringent SOPs and multichannel communication with customers • Kept abreast on all developments related to shutdown, new regulations, new SOPs and consistent review of primary facilities to assure readiness across the supply chain As at 31 December 2021, all issues related to COVID-19 are handled in accordance to Kementerian Kesihatan Malaysia’s (KKM) and other relevant authorities’ instructions and SOPs, and these have increased the effectiveness in managing further spread of infection and possible prolonged production downtimes and business disruptions. In total, 73 projects under the Upstream Division were shutdown (mandatory & voluntary) due to Enhanced Movement Control Order (EMCO) and KKM orders Adverse weather conditions impacting harvest • Implemented innovative practices and planting techniques Our estates took these immediate approaches to mitigate adverse weather conditions: • Dry Weather: – Strengthen implementation of Good Agriculture Practice (GAP) especially during replanting – Moisture Conservation practices • Wet Weather: – Flexible harvesting arrangement for flood area – The estates practice diverting the harvesters to unaffected high ground areas and return to the affected area after the flood has receded – Bund construction for selected estates for flood mitigation Shortage of migrant and skilled labour • Implemented 3R (Recruit, Retain, Repatriate) and local workers recruitment drive • Increased mechanisation efforts, intensified crop recovery and followed GAP • Since December 2020, FGV has actively conducted a nationwide recruitment drive for local workers. As of December 2021, FGV has received more than 900 inquiries from locals and interview sessions are currently underway with close to 600 locals hired to-date • Mobilisation of general workers to prioritise on harvesting • Training of harvesters to increase the number of skilled harvesters • More effective estate micro management, tasking system implementation & ensure complete monthly harvesting (= 2.5 rounds per month) • Implementation of C1R2 (1 Cutter, 2 Carrier) harvesting system Group Business Review Plantation
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