Tuesday, November 29

FGV hopes PM’s China trip will boost palm oil sector


Datuk Zakaria Arshad

KUALA LUMPUR: FGV Holdings Bhd is optimistic that Prime Minister Tun Dr Mahathir Mohamad’s official visit to China in August will benefit the palm oil sector, said president and group chief executive officer Datuk Zakaria Arshad.

Speaking to reporters at the FGV open house yesterday, he said the visit was also expected to improve bilateral trade relations between China and Malaysia.

When asked if FGV would participate in the visit, Zakaria said the company had yet to receive any information from the Prime Minister’s department on the trip.

Elaborating further, he said the bulk purchase of palm oil by China had decreased following competitive market prices in China and Malaysia, as well as the competition from Indonesia.

As the world’s third largest palm oil exporter, FGV has a market share of between 20 per cent and 30 per cent in China, said Zakaria, adding that the share had slightly declined.

Meanwhile, on the company’s operations, he said efforts were being made to review the company’s investment portfolios.

“We will be streamlining any problematic portfolios and concentrate on those which are profitable. We have been doing this but the outcome is still unknown,” he added. — Bernama