FGV Annual Report 2015

40 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 What 2016 has in Store In the near term, FGV is looking forward to a recovery in crop prices from the low levels experienced in 2015. This trajectory will be supported by the growing consumption and production trend for commodities across the globe. We are aware of the headwinds that could be in store within the sector and have laid down the building blocks that will sustain us through these challenging times. In 2016, we will continue to aggressively execute our Transformation Programme in order to deliver long term value to our Stakeholders. To mitigate some of the risk factors, we continue to focus on efficiency gains. Improving yields is critical as the margins are challenged as a result of fluctuaction and volatility of CPO prices and the US dollar. On a regulatory note, environmental pressures from the developed world and large-scale customers, such as Unilever and Procter & Gamble, could take greater precedence. We believe that this could mean a more stringent operating environment in terms of sustainable palm oil. Already the industry is having to deal with issues like deforestation, indigenous community, native land, conservation and illegal migrants. In addition to sustainability measures, the Group’s growth will be subject to tighter regulations by authorities and Stakeholders across the globe. Fully aware of the cyclical nature of commodities and the present global economic climate, we stand by the long term attractiveness of the agriculture sector. This sector brings value to the communities it serves that goes beyond just the material. We are privileged by the developmental and enrichment role this sector lends to society. Group President/Chief Executive Officer’s Statement