KUALA LUMPUR: After a challenging and tumultuous 2016, Felda Global Ventures Holdings Bhd (FGV) is looking forward to 2017 and is set to become a leaner and stronger organisation, riding on improved plantation performance and higher commodity prices.
FGV Group president and chief executive officer Datuk Zakaria Arshad said he is optimistic going into 2017 upon looking back at the invaluable past year's experience as FGV positions itself to face industry challenges.
"We are upbeat as the industry looks forward to better commodity market sentiments in light of lower palm oil inventory levels, improving export demand, moratorium on new plantings in Indonesia and recovery in crude oil prices,” he said in a statement today.
Zakaria said the strategy going into 2017 will revolve around three main thrusts namely business rationalisation to make the organisation leaner, drive for operational excellence, and selective external growth, all to be executed under uncompromising governance and transparency standards.
He said FGV’s group-wide business rationalisation plan has been accepted in principle by the Board for immediate implementation – to make FGV leaner and more competitive in 2017 through restructuring, divesting or collaborating with another player for those assets and investments that have been dragging its profitability.
“FGV is also reviewing its organisation structure and business model to achieve better reporting alignment and accountability, mitigation against commodity and currency volatility as well as closer oversight on associated businesses,” he said.