KUALA LUMPUR: PPB Group Bhd says its operations are not significantly impacted by the implementation of the Goods and Services Tax (GST), despite its business revolving around consumer goods. PPB Group’s core businesses are its flour and feed milling division under its 80 per cent-owned subsidiary FFM Bhd, as well as its film exhibition and distribution division under Golden Screen Cinemas Sdn Bhd (GSC). FFM Managing Director Datuk Ong Hung Hock said its core business in raw materials such as flour, feedstock and eggs has not been affected as they are zero-rated supplies. “We also have canned and frozen food, which is categorised under standard rated supplies, but these are not a significant part of our business,” he told reporters after the company’s annual general meeting here today. GSC Chief Executive Koh Mei Lee said there had not been any slowing down in cinema admissions at the moment due to the release of blockbuster films such as Furious 7 and Avengers: Age of Ultron as soon as the GST kicked in. “We have allocated capital expenditure of RM208 million to this division to open 11 new cinemas over the next two to three years, upgrade three existing ones and acquire an additional stake in a Vietnam associate. “We hope these initiatives will further improve our business and generate more revenue,” she added.
On its plantations operations, PPB Group Chairman Datuk Oh Siew Nam said palm oil plantations are still profitable despite the significant decline in the crude palm oil (CPO) price over the years.
“The average price for CPO right now is about RM2,100 a tonne while the average cost of production is no more than RM1,400 a tonne. “Whatever it is, growing oil palms today is still profitable because the cost is relatively low,” he added.
The PPB Group is presently the largest shareholder in Wilmar International Ltd, in which it holds an 18.3 per cent stake. Asked if PPB Group intends to increase its shares in Wilmar, Oh said the group would more likely focus on developing their own business at PPB Group, adding there had been no talks on increasing its shares at the moment. – Bernama