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FGV likely to restructure group

KUALA LUMPUR: Felda Global Ventures Holdings Bhd’s (FGV) incoming chief, Datuk Zakaria Arshad, is expected to reshuffle the group structure and initiate key strategies to strengthen its core businesses.

It is learnt that Zakaria, who is currently head of downstream operations, will beef up FGV’s core divisions such as plantation, processing and marketing after taking over from president and chief executive officer (CEO) Datuk Mohd Emir Mavani Abdullah tomorrow.

He is also expected to continue with cost-cutting plans as part of efforts to strengthen FGV’s performance and global standing.

Zakaria is expected to share these initiatives with FGV staff on his first day as the new president and CEO.

It is understood that he is likely to carry out measures such as reshuffling the organisational structure, including portfolio restructuring.

Experienced staff are expected to be placed at the top to ensure smooth operations and to execute strategic plans. The staff are expected to accept the change with an open heart and remain committed to their new tasks.

It is learnt that FGV will continue with operational cost savings, focusing on tight control over expenses until its financial position comes back positive.

The relationship between the top management and operations at the plantation level, as well as the oil palm mill and downstream factories, is expected to be further strengthened.

It is learnt that the group would reward workers based on merit. Those who were with Zakaria at FGV over the years are well aware that he does not practise favouritism.

Since operations are the backbone of the group, Zakaria is expected to give more breathing space for employees to express their views on making FGV a stronger company.

As with the previous management, he is expected to be committed to the principles of transparency and good corporate governance.

He is also likely to share with the staff that the present generation would rather hear what FGV has done than be told of future plans.

FGV is in the midst of two big acquisitions.

It recently received the nod from the Finance Ministry to buy a 55 per cent stake in China-based edible oil producer Zhong Ling Nutril-Oil Holdings Ltd for RM976.25 million.

FGV has also proposed to buy a stake in Indonesia’s PT Eagle High Plantations Tbk.

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