FGV Annual Report 2012

A n n u a l R e p o r t 2 0 1 2 L a p o r a n T a h u n a n 13 ahead due to current low prices and the government’s recent establishment of Biodiesel Malaysia Sdn Bhd, a consortium to implement biodiesel initiatives, promises to improve CPO prices. Given that plantation is a long-term undertaking, prospects continue to be favourable. Malaysia’s Economic Transformation Programme (ETP) identified palm oil as a major component of Malaysia’s economy over the next ten years. The focus is on ensuring the productivity and sustainability of the industry by improving oil palm cultivation, productivity and enhancing utilisation of biomass. This is in line with the Government’s efforts to increase the total gross national income (GNI) contribution of the industry by RM125 billion to RM178 billion by 2020. FGV thus remains cautiously optimistic about its 2013 prospects. Yields are expected to show improvements throughout 2013 compared to 2012 with the end of the weather-induced tree stress. We have implemented and will continue with various efficiency- improvement initiatives to improve productivity and reduce costs. The dividend payment is expected to benefit approximately 180,000 shareholders including the majority of 112,635 settlers who are FGV shareholders. In addition, through a Settler Trust Fund, all settlers nationwide will share in the payment of final dividends on 20 percent of shares held by FELDA amounting to RM62.02 million. Together with RM40.13 million distributed to them from the interim dividend paid out in October 2012, the total proceeds to settlers from the Settler Trust Fund amount to RM102.15 million for fiscal 2012. A CLEAR FUTURE Going forward, concerns on CPO stock overhang continue to plague the industry. However, increasing demand in the months