FGV Annual Report 2013

The total production of refined sugar rose 4.2 percent to 938,203 tonnes, representing 57 percent of Malaysia’s entire production of granulated sugar. Total sales volume increased by 1.6 percent to 952,740 tonnes, of which 76.6 percent was sold locally with the remainder exported, mainly to the Asia Pacific region. MSM’s export growth is supported by the many quality certifications it has earned from internationally recognised bodies such as SIRIM and ISO. In 2013, MSM was awarded FSSC : 2200 (Food Safety System Certification) as a globally accepted assurance that international food safety standards are adhered to within the production process. In laying the foundations for a new phase of growth, a sum of RM85 million has been allocated for various infrastructure and facility enhancement projects. The production capacities of its refineries in Prai, Penang and in Chuping, Perlis have increased to 87 percent and 95 percent respectively. This will see the annual production capacity of these two refineries increasing to 1.2 million tonnes by the end of 2014, making the Group one of Asia’s top five suppliers of refined sugar. Other improvement initiatives include the upgrading of processes and the expansion of various facilities and the rationalisation of MSM’s distribution channels. An Enterprise Resource Planning (ERP) initiative was rolled out in 2013 to enhance resource management and equip our human resources with the relevant technical and managerial skills essential to propel the business to the next level. Looking beyond organic growth, MSM is planning a vigorous programme of strategic acquisitions, mergers and joint-ventures to grow its business. From its position of strength in the sugar refining business and exploiting the synergies of belonging to the FGV Group, MSM has plans to expand its business to cover the entire supply chain. Upstream, a feasibility study has been conducted to determine the viability of establishing sugar plantations in the ASEAN region, particularly in Myanmar where margins are higher. We are also looking at various options to expand downstream either through acquisitions or in joint-ventures with prospective foreign sugar producers in ASEAN as well as Brazil. Moving forward, the prospects for the Sugar Cluster remain bright. Global demand is set to grow by between 25 percent and 27 percent over the next five years, driven by increasing consumption in Africa and Asia. CEO’s Review Ulasan Ketua Pegawai Eksekutif SUGAR GULA Felda Global Ventures Holdings Berhad 36