FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 9 WHO WE ARE & HOW WE CREATE VALUE FGV's RD&A Cluster serves as our oil palm Research and Development (R&D) outfit. It has pioneered cultivation of high-yielding and disease- tolerant oil palm planting and support materials. Our award-winning Yangambi oil palm planting material, commanding a 43% market share in Malaysia, is one of RD&A's innovative products. The Cluster's key objective is to generate cutting-edge agri-business technologies to enhance operational performance and commercial utilisation across all facets of FGV. The Group has also included FGVT into the Plantation Sector to fortify the Sector's aspiration to accelerate internally produced edible oils and fats transactions to existing and new markets. The LO Sector ensures integrated supply chain support across all of FGV's core business. The Sector's task is to connect and control the flow of assets across FGV's business, driving Group-wide efficiencies. Going further into completing the supply and value chain landscape, we are embarking on end-to-end logistics as a high value Multimodal Transport Operator (MTO) and exploring an asset- light approach to maximise our bottom line wherever possible. Edible oil storage and warehousing facilities complement the Group's logistic activities, locally and globally. These activities will provide the impetus to enhance the performance and improvement of FGV's core activities. COMPANY PROFILE The Sugar Sector comprises its listed subsidiary MSM Malaysia Holdings Berhad (MSM Holdings) making FGV the leading refined sugar producer in Malaysia. FGV commands 60% of the local refined sugar market with an annual production capacity of 1.25 million MT. MSM Holdings continues to expand and optimise the businesses of its two (2) operating subsidiaries - MSM Prai Berhad and MSM Perlis Sdn Bhd, with an upcoming refinery in Tanjung Langsat under MSM Sugar Refinery (Johor) Sdn Bhd that is expected to commence operations in 2018. ASustainability and Environment Department (SED) has been established under our Corporate Centre to pursue the Group's commitment to create a sustainable business that is financially successful while contributing towards the total well-being of people and the planet. This includes the strategies that will address Economic, Environmental and Social (EES) impacts and pursue opportunities to achieve business excellence. The Group's progression towards becoming one of the leading globally integrated agri-businesses by year 2020 will open up global possibilities and potential. With world class technology and the passion of our employees, we will meet the needs of a green and sustainable planet. An aerial view of FGV's Besout 6 estate in Perak, which is undergoing a replanting exercise.