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works on 754 hectares which
commenced last year are still
on-going and expected to be
completed in this current year.
The initial harvest therefrom is
expected in FY2022/23.
Consistent with the Group’s policy to
work with and contribute positively
to the communities in which we
have operations, the estate had
successfully recruited over 100 local
workers from the surrounding areas.
Recruitment of local workers will
continue to be a priority.
Construction of 8 new quarters
which can accommodate an
additional 64 workers is expected
to be completed in this current
financial year. Meanwhile existing
quarters have been refurbished
and upgraded such that it can now
comfortably accommodate up to
50 workers.
Ladang Dabong, Kuala Krai and
Ladang Aring, Gua Musang,
Kelantan
Planting and development works
has been progressing well with 110
hectares and 396 hectares have
been planted at Ladang Dabong
and Ladang Aring respectively.
It is anticipated that these
estates will commence harvest
in this current financial year.
Regrettably, Ladang Aring had
also encountered incidences of
crop-raiding elephants resulting in
damage to approximately 13,672
young palms. In the circumstances,
plans to establish a patrol team
and construct trenches to deter
elephants from entering the
fields are underway. In any event,
all damaged palms have to be
replaced thus causing delays
before they can be harvested.
Ladang Sg. Siput, Perak
The permission and approvals
for land development at our
greenfield estate in Sg. Siput, Perak
measuring 2,000 hectares have
been obtained from the relevant
authorities after much delay. An
environmental impact assessment
exercise (“EIA”) has also being
carried out and is now pending
final approval from the Department
of Environment. As part of the
EIA exercise, management held
2 focus group discussions to
share information with and seek
feedback from the indigenous
and local communities, local
authorities and NGOs regarding
the planned development. It is
pleasing to note that based on the
outcome of the survey undertaken
among the stakeholders, 61.2% of
the respondents expressed their
agreement towards the project.
We hope to be in a position to
commence initial development
works in this current financial year.
Capital Expenditure (“CAPEX”)
During the year under review, the
division spent RM28.56 million on
CAPEX largely towards plantation
development works and purchase/
replacements of fixed assets.
Furthermore, the infrastructure
at all our new developments have
been designed to facilitate in-field
mechanization. We provide good
quality housing for our workers
and further investments in workers’
housing as well as other estate
infrastructures will continue in this
current financial year. Roll-out of
the upgraded IT system across
all our Malaysian estates which
commenced last year is expected
to be completed in this current
financial year. The new IT system
would provide the Group’s head
office more visibility and control of
the estates’ operations.
Sustainability Standards
Certification
As at 31 March 2019, all 8 of our
estates have been recommended
for certification to the Malaysian
Sustainable Palm Oil Standards
(“MSPO”) and are now pending
certificate issuance. Selected
employees have been sent for
training to ensure that we have
the necessary competencies
performance
review
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