FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD CREATING VALUE 10 MACROECONOMIC OUTLOOK IN 2018 CHINA MENA EU AFRICA LATIN AMERICA USA JAPAN MALAYSIA ASEAN INDIA 2017: 6.8% 2018: 6.5% 2017: 2.6% 2018: 3.1% 2017: 2.4% 2018: 2.0% 2017: 2.3% 2018: 3.0% 2017: 1.2% 2018: 2.2% 2017: 2.2% 2018: 2.2% 2017: 1.6% 2018: 1.0% 2017: 5.2% 2018: 5.0% 2017: 5.0% 2018: 5.1% 2017: 7.0% 2018: 7.4% • Steady growth but under pressure due to weak productivity, ageing population and in some countries, high debt • China’s economy will slow down, led by significant reduction in the property and industrial sectors • The US settles at new normal of 2% while Eurozone is not far behind • Political risk is high • India facing demonetisation and GST impact • MENA* – Successful implementation of OPEC oil cut deal shoring up oil market and economic outlook • Increasing consumer spending in Vietnam and the Philippines • Rapid urbanisation in Indonesia and Thailand • Slight dip in growth (0.2%), though still one of the highest in the ASEAN region; attributed to decline in oil and other commodity prices EU CHINA USA INDIA & MENA* ASEAN MALAYSIA Sources: The Economist, World Bank, Asian Development Bank, IMF, Focus Economics *Middle East & North Africa Regulatory Changes/Pressures INDIA Substantial tax imposed for imported palm oil products EU Call for palm oil ban in biofuel USA Trump’s protectionist policies Global Macroeconomic Climate Global economic growth settled at 3.7% for 2017 and would likely be marginally lower at 3.6% in 2018, dragged by the slowdown in China, Japan and the EU. ASEAN market growth is expected to be marginally positive due to urbanisation and increasing consumer spending. OUR MARKET LANDSCAPE