FGV Annual Report 2015

12 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Market Landscape Commodity markets depressed due to slowing global economy Gross Domestic Product (GDP) in major economies show a stagnant to declining trends Top traded commodities prices are currently in downtrend while the outlook is marginally positive Opinion about current economic condition 2011 2012 2013 2014 2015f 2016f GDP Growth (%) China India United States Malaysia World 7.4 6.9 2.8 2.5 BMI Research data and consensus & Asian Development Bank 4,000 3,000 2,000 1,000 0 2012 2013 2014 2015 2016 2017 2018 Commodity Prices cocoa (USD/tonne) palm oil (MYR/tonne) soybean (Usc/bushel) wheat (Usc/bushel) corn (Usc/bushel) coffee (USD/tonne) crude oil (USD/bbl) sugar (Usc/lb) China industrial output • China industrial output lowest in 6 months indicating global demand slowing down Global trading • “Trade is currently significantly weaker than it normally would be under the growth forecasts”- MD Maersk IMF • Revising down global real GDP growth outlook from 3.3% to 3.1% OECD 1 • Lowered its FY15 global economy forecasts for a second time in three months, from 3% to 2.9% 1 OECD – The Organisation for Economic Corporation and Development BMI Research data