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The Malaysian Government has also
announced several relief measures
including a moratorium on repayment of
loans and wage subsidy programmes for
eligible industries. Where relevant, our
Group companies have applied for such
relief measures which will help ease their
financial position further. We are hopeful
that with the stimulus package that the
Government has put in place, businesses
will be able to tide through and provide
a boost to the recovery process after the
peak of the outbreak.
In the face of these challenges, resilience
is a vital necessity. And, if there ever was
a time to emphasise on this point, it is
that balance sheet matters. As noted
earlier, our balance sheet and cash
generation are strong while gearing
remains low. This gives us the capacity to
not only pursue our growth aspirations,
but also to withstand adverse business
conditions and hedge any potential
downside risks.
Our primary focus for this current
financial year will be, firstly, to adapt
to the ongoing secular challenges
and manage the economic fallout of
Covid-19 in our manufacturing division.
In the case of the latter, rapid contraction
of air travel and stringent border controls
have resulted in a significant reduction
in demand for travel documents. We
are also anticipating some decline in
other segments with orders for certain
products being deferred or cancelled.
With regard to plantation, the immediate
focus will be to realise improved returns
on our greenfield assets which we had
acquired in recent years. We expect
our FFB volumes to improve due to the
young age profile of the palms at our
Malaysian estates, although ongoing
development expenditure and volatile
commodity prices may impact the
division’s overall earnings.
We expect our bulking and food
businesses to deliver further growth
through investments, improvement in
their customer offerings andmarket
expansion, together with a focus on cost
and efficiencies. Focus will also be given to
improve the biodiesel plant’s operational
efficiencies and production capacity.
Notwithstanding the challenges I have
described, we will continue to future-
proof and review the Group’s structure
to ensure we have the right platform
from which to pursue continued growth
and meet the challenges of an ever-
evolving, uncertain world. Agility remains
important across our businesses and
we will therefore continually strive to
refine and develop a model that can
preserve and create value, generate
sustainable returns as well as position
us for ongoing organic and acquisitive
growth opportunities. Our business
fundamentals remain strong despite
the macroeconomic challenges and
uncertainties associated with Covid-19.
We will continue to make decisions and
manage the business for the long-term.
And having the financial strength,
flexibility and access to adequate capital
to support our long-term growth plans
are all key to our long-term success.
In this regard the Board will continue
to oversee the task of striking the
right balance between maximising
opportunities on the one hand and
maintaining appropriate risk controls on
the other.
Appreciation & Acknowledgement
I would like to conclude by thanking the
Board for their guidance and support to
me during the year. I would also like to
thank our employees, suppliers, business
partners and other stakeholders for their
efforts and contribution in the past year
and to you, our shareholders, for your
continued support and confidence.
Thank you.
Dato’ Idris bin Kechot
Chairman
In the face of these
challenges, resilience is
a vital necessity. And, if
there ever was a time to
emphasise on this point, it is
that balance sheet matters.
kumpulan Fima Berhad
(197201000167)(11817-V)
Annual Report 2020
25