KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) targets to grow the revenue of its trading, marketing, logistics and others (TMLO) cluster to RM12.6 billion by 2020 from RM6.8 billion last year.
The TMLO cluster is also expected to record a profit-before-tax of RM301 million from a loss of RM15 million last year.
FGV executive vice-president and TMLO cluster head Datuk Khairil Anuar Aziz said while the revenue target was conservative, the cluster was poised to tap several high-value jobs in the pipeline.
The TMLO cluster consists of logistics, storage, properties, information and communication technology (ICT) and engineering businesses,
Khairil Anuar said it was looking at a potential logistics job value of RM1.4 billion over the next four years, with a majority coming from infrastructure and mining activities.
“We are eyeing some infrastructure jobs, which include the Gemas-Johor Baru electrified double-tracking project, the Kuala Lumpur-Singapore high-speed rail and East Coast Rail Line.
“As we expect 10 per cent of the projects’ worth to go into the logistics segment, this business provides us with opportunities to boost the cluster in the near future,” he said at a briefing, here, recently.
Khairil Anuar said in the next one to two years, the TMLO cluster aimed to increase its external business, especially logistics, to 50 per cent from 40 per cent currently.
“While we still remain committed to growing our internal business of palm oil, we also see a huge potential to grow the external business.
“I would say logistics is a business that requires minimum investment in expenditure but can give high returns to the group.
“We want a sustainable business and logistics is the way to go.”
Khairil Anuar said it was eyeing RM80 million worth of jobs for its storage segment, RM380 million for property, RM100 million for ICT and RM530 million for engineering in the next four years.