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 33 Beyond Malaysia’s shores, we are exploring possibilities to acquire brownfield estates in Southeast Asia, even Papua New Guinea, with a view to plant not just oil palm but also other viable crops such as rubber and sugarcane. This is in line with our aim to grow our presence in these secondary crops as well as to address our strong dependence on palm oil. Our immediate target is to secure 150,000 hectares of land in the next five years so that by 2020, our operations will encompass one million hectares of plantations, including harvest from the settler estates. The geographical expansion may also include greenfield acquisitions in countries around the African tropical belt where we plan to implement the Felda settler-smallholder model. Altogether, we expect to spend 50 percent of listing proceeds to pursue strategic and geographical expansions of our upstream business. Bearing in mind that overseas forays present unique risks and may require to be effected through acquisitions and mergers with local partners, we have implemented robust protocols.These are designed to mitigate any risks as well as assess new investments to ensure strategic fit with our vision. Meanwhile, we are making good progress on the development of 40,000 hectares of land in East and Central Kalimantan through a 50:50 joint-venture with Lembaga Tabung Haji, Trurich Resources Sdn Bhd, where we have planted 24,860 hectares out of 42,000 hectares. Of these, 6,200 hectares are mature. We are also growing oil palm on another 14,385 hectares in West Kalimantan through our 95 percent owned PT Citra Niaga Perkasa which should be fully planted by 2016. untuk mengembangkan kehadiran kami dalam tanaman sekunder tersebut serta untuk menangani kebergantungan kami kepada minyak sawit. Sasaran segera kami adalah untuk mendapatkan 150,000 hektar tanah dalam tempoh lima tahun akan datang agar menjelang tahun 2020, operasi kami akan merangkumi satu juta hektar ladang, termasuk tuaian daripada ladang peneroka. Pengembangan geografi juga merangkumi pengambilalihan tanah yang belum dibangunkan (greenfield) di negara-negara di sekitar kawasan tropika Afrika di mana kami merancang untuk melaksanakan model peneroka-pekebun kecil Felda. Secara keseluruhannya, kami menjangka untuk membelanjakan 50 peratus daripada hasil penyenaraian untuk meneruskan pengembangan strategik dan geografi perniagaan huluan kami. Kami sedar bahawa penerokaan ke luar negara mempunyai risiko yang unik dan mungkin perlu dilaksanakan menerusi pengambilalihan dan penggabungan dengan rakan kongsi tempatan, oleh itu, kami telah mewujudkan beberapa protokol yang mantap. Protokol-protokol ini direka untuk mengurangkan sebarang risiko serta menilai pelaburan baru bagi memastikan kesesuaian yang strategik dengan visi kami. Sementara itu, kami sedang mencapai kemajuan yang baik bagi pembangunan40,000hektartanahdiTimurdanTengahKalimantan menerusi usahasama 50:50 dengan Lembaga Tabung Haji, Trurich Resources Sdn Bhd, di mana kami telah menanam 24,860 hektar daripada 42,000 hektar. Daripada jumlah ini, 6,200 hektar adalah tanaman matang. Kami juga sedang menanam kelapa sawit di 14,385 hektar di Kalimantan Barat menerusi 95 peratus pemilikan PT Citra Niaga Perkasa yang akan ditanam sepenuhnya menjelang 2016.