Felda Global set for aggressive expansion

STRATEGIC PLAN: Group shortlisting global partner in effort to become complete oils and fats player


KUALA LUMPUR: Felda Global Ventures Holdings Bhd will aggressively expand its business to become a fully integrated oils and fats player from upstream to downstream.

Senior vice-president (oils and fats) Martin Rushworth, said one of the ways is to find a strategic global partner to help Felda’s business move across the entire supply chain.

The spectrum starts from planting oil palm, selling crude palm oil, refining, refraction as well as selling value-
added products such as palm stearin, cooking oil, margarine, bakery fats and industrial fats.

“It is essential we do this so that Felda can create value in the supply chain. Our foreign partner will complement our needs so that Felda can move in a bigger way to capture world markets,” Rushworth told Business Times in an interview recently.



Government-owned Felda Global is slated for listing on Bursa Malaysia by June and is now in the midst of shortlisting up to four potential candidates to become its global partner.

Rushworth said Felda cannot afford to stay still and has to develop its capability in a bigger way to stay competitive in the global markets.

“So the forthcoming listing is good as it enables
us to compete with other international and fully integrated competitors such as Singapore’s Wilmar and Indonesia’s Golden Agri-Resources.

On the homefront, Felda can be on equal footing with companies such as IOI Corp Bhd, Kuala Lumpur Kepong Bhd and Sime Darby Bhd.
“Our foreign partner will help us move forward and complement us, such as in the areas of logistics and supply chain, and in areas where we are not strong, such as shipping, which we are not able to do,” said Rushworth.

He said the listing is important as Felda cannot do it alone and needs to establish partnerships in the midstream and downstream markets.

“Felda is poised for growth as palm oil has now become a world commodity and is the biggest edible oil after overtaking soyabean oil four years ago,” he said.

He added that Felda will have to work hard to keep up with rising demand for edible oils, which is still growing due to the burgeoning world population, with consumption of 26kg of fat per capita.

“Felda is in a dynamic and growing market and it is important
we stay competitive with the world’s other edible oils,” said Rushworth.

Felda Global is the business arm of Federal Land Development Authority, owning 850,000ha of oil palm estates, 500,000ha of which owned by smallholders.

Felda produces a tenth of the world’s palm oil supply and owns 14 refineries, of which seven are in Malaysia. The group has operations in 11 countries and churns over RM20 billion of revenue a year.