FGV Annual Report 2013

The Group’s commitment to quality excellence is also reflected in the various certifications earned by MSM Malaysia Holdings Berhad (MSM). Apart from quality management certifications from SIRIM and ISO, MSM’s products are certified halal and kosher. MSM is also accredited to the Hazard Analysis and Critical Control Point (HACCP) system, which is the universally recognised and accepted method for food safety assurance. In 2013, MSM was awarded the Food Safety SystemCertification (FSSC:2200) in recognition that stringent food safety standards are adhered to within the production process. Research and Development. There is no question that FGV’s competitive edge includes its significant research and development (R&D) capabilities. Through Felda Agricultural Services Sdn Bhd (FASSB), the Group is an industry leader in various R&D capabilities. Backed by over 40 years of R&D experience, we produce award winning oil palm planting materials cementing our position as the top seed producer in the country. Annually, FASSB produces about 60 million oil palm seeds and about one million ramets (clonal materials). Our Felda Yangambi brand has captured 35 percent of the planting material market. Besides the traditional breeding method, FSSB leverages on tissue culture at its facility in Nilai, Negeri Sembilan. Its plan to introduce a new hybrid planting material which involves a three-way cross of elite materials. Other scientific breakthrough includes a gene marker for Ganoderma, a basal rot disease affecting oil palm trees. FASSB also supports the Group’s downstream processes through formulation enhancement and product development. Executionenablers. Inchartingourstrategytoaccelerateimprovements, we have also identified key execution enablers such as communications, management discipline, governance quality, IT-enabled decision making, finance systems and planning and the introduction of change management programmes among others. In fostering transformational growth, an effective communications strategy is essential to engage effectively with stakeholders, both internal and external. Employee communications will be enhanced group-wide to win the buy-in and support of staff on the many transformation projects and organisation changes that will be occurring simultaneously. ACKNOWLEDGEMENTS It goes without saying that the way to success is through our employees and it has been my privilege to work with a great team. Our people are the ultimate source of competitive advantage and in these challenging times, our management and staff must be commended for their professionalism, adaptability and dedication. I thank all of you. Unquestionably that we have our work cut out for us. We are aware of the challenges ahead, but we need to look upon these challenges as an opportunity – an opportunity to break away from traditional structures that have out-lived its usefulness, embrace a more commercially- driven approach that is more in sync with today’s dynamic business environment, develop innovative products and services, expand our global foot-print and not least of all, an opportunity to create further value for our shareholders. These challenges will undoubtedly push the boundaries of our capabilities, especially those of our human capital who will play a pivotal role in shaping our corporate destiny. However, I am confident that these very challenges will drive our people forward, working closely as a team and creating innovative synergies in pursuit of a brighter future. FGV is definitely on the cusp of a new and brighter future. Our people have an important role to play in what could well be the making of one of corporate Malaysia’s greatest success stories. We owe that to the original settlers who brought us to where we are today. Most of all, we owe it to ourselves. Thank you. Mohd Emir MAVANI ABDULLAH Group President Chief Executive Officer CEO’s Review Ulasan Ketua Pegawai Eksekutif Felda Global Ventures Holdings Berhad 46