76 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION Group Business Review Logistics & Others INFORMATION & COMMUNICATION TECHNOLOGY Current Market Strengths • Good track record in handling end-to-end IT managed services or total IT outsourcing • SAP Gold Partner and Value Added Reseller • Local knowledge business process expert leader for big scale plantation sector • Own over 100 Intellectual Property (IP) rights, and seven patented IPs Through our ICT arm in FGV Prodata Systems, we have successfully established our branding as a prominent systems integrator and solutions provider in Malaysia, as well as strengthened our footprint in various ministries, Government agencies, GLCs, financial sector, education sector, O&G, defence and other sectors since 1995. We specialise in providing end-to-end ICT solutions into an efficient and cohesive system to suit our customers’ needs. Gaining our momentum to keep up with fast moving ICT advancement, several key strides were made in 2021, harnessing the growing demand for digital solutions. Our Warehouse Management System (WMS) went live on June 2021, and a Smart Plantation Management Solution (SPMS) 2.0 was deployed to utilise drone technology in enhancing FELDA’s plantation data collection and monitoring processes. As part of FGV’s direction towards growing our external customer base, we penetrated the O&G Sector through securing the Telecommunication Infra & System Maintenance (TISM) contract awarded by Petronas Refinery & Petrochemical Corporation (PRPC); as well as Tenaga Nasional Berhad’s (TNB) Installation of Advanced Meter Infrastructure (AMI) contract. Harnessing ICT as a catalyst for growth, we are also developing new business solution such as Software-as-a-Service (SaaS) to internal and external customers. Expansion plans are in the pipeline with the proposed formation of specialised ICT subsidiaries focused on the telecommunication and defence industries. Transport Volume (Million MT) 2019 2020 2021 6.02 5.72 5.71 TRANSPORT Current Market Strengths • Over 47 years of operations, and equipped with 549 units of mix fleet vehicles • Invested in enhancement of hardware and software with value added technology • Specialised in Project Cargo logistics with Multimodal Transport Operator (MTO) license, forwarding license, and special license by Tabung Haji to handle Hajj baggage for pilgrims Our transportation business via FGV Transport Services Sdn Bhd is instrumental to the Group’s aim to be a total logistics solutions provider in Malaysia, being the biggest palm products transporter in the nation with a growing fleet of liquid tankers, cargo trucks, and side curtains. In 2021, headway was made in venturing beyond established competencies that serve internal businesses to new integrated business solutions for a wider customer base. These included penetrating into the O&G industry and venturing into cold chain transportation services. The start-up of cold chain transportation services involving 10 refrigerated trucks deployed was rolled out in September 2021 to serve the FMCG market. Other achievements in further expanding the commercial viability of our business included being appointed as one of the logistics service provider in providing inward clearance and land transportation for Padiberas Nasional Berhad (BERNAS), handling freight forwarding for East Malaysia’s shipments of MSM Johor and securing a three-year contract as the logistics provider for delivery of Standard Malaysian Rubber (SMR)/Shrinkwrap for MARDEC Procession Sdn Bhd (MARDEC). Transport volume in FY2021 decreased slightly by 0.1% to 5.71 million MT compared to FY2020 due to lower CPO and Palm Kernel (PK) productions.
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