The certification signals the planter’s commitment towards sustainable production of palm oil
by SHAHEERA AZNAM SHAH/ pic by RAZAK GHAZALI
ALL of FGV Holdings Bhd’s mills and oil palm estates have been certified under the Malaysian Sustainable Palm Oil (MSPO) standard, following the government’s directive to support sustainable production.
“FGV is pleased to announce that all its 68 mills and 173 estates covering 373,517ha of land nationwide are now 100% certified under the MSPO certification Malaysian Standard MS 2530:2013.
“FGV’s subsidiary, Asian Plantation (Sarawak) Sdn Bhd, was the last to undergo this exercise and received its certification on Feb 27, 2020,” the plantation group said in a statement yesterday.
The certification signals the planter’s commitment towards sustainable production of palm oil and support for the government’s efforts through the Malaysian Palm Oil Certification Council (MPOCC) to elevate Malaysian palm oil globally, FGV group CEO Datuk Haris Fadzilah Hassan (picture) said.
“It was an arduous but fruitful journey for us given the enormity of our operations all over Malaysia. We are thankful to MPOCC for their support and guidance throughout the certification process,” Haris Fadzilah added.
At a recent financial briefing, the planter said it plans to complete the process for the international-standard sustainable certification, the Roundtable on Sustainable Palm Oil (RSPO), by the second quarter of 2021.
As of Feb 23, 2020, 33 of FGV’s mills have been RSPO-certified. Earlier this year, the RSPO complaint panel suspended the principles and criteria certification processes for all of FGV’s uncertified mills and reimposed the suspension of FGV’s Kilang Sawit Serting in Negri Sembilan.
The palm oil body came to the decision after it found the results of FGV’s audit reports to be unsatisfactory.
The audits were conducted at six FGV complexes — Jerangau Baru Complex, Selanchar 2B Complex, Serting Complex, Triang Complex, Lanchang Kemudi Complex and Nilam Permata Complex, of which only the Serting Complex has received an RSPO certification.
In response, FGV said it will appeal the suspension direction and address the non-compliance issues highlighted by the complaint panel.
In its financial year ended Dec 31, 2019 (FY19), the group’s net loss narrowed to RM242.19 million from RM1.08 billion a year ago, while revenue fell 1.5% to RM13.26 billion from RM13.46 billion previously.
For the fourth quarter of FY19, the planter recorded a net profit of RM75.79 million against a net loss of RM209.16 million the year prior, boosted by improved crude palm oil (CPO) prices and reduction in operating costs.
Revenue for the quarter slipped to RM3.15 billion from RM3.23 billion a year earlier, largely due to lower yields as a result of the lag effect from prolonged dry weather and lower rainfall.
Shares of FGV closed 0.9% higher at RM1.15 yesterday, bringing its market capitalisation to RM4.2 billion.