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POINTERS 2014 MPOC
Palm Oil Internet Seminar
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2nd Half 2014: Market Challenges, Predictions And Directions:
Palm Oil: Sustainable and Responsible Production in Malaysia, With Reference to the Felda Group
By: Mr. S. Palaniappan

Member of Malaysian Palm Oil Association (MPOA) R&D Main Committee. Member of MPOB National Task Force on Bud Rot Disease and Ganoderma Basal Stem Rot. Past Felda Representative on Roundtable for Sustainable Palm Oil (RSPO). Past Member of Advisory Committee Biotechnology and Molecular Sains Faculty, UPM. Past Member of Board of Advisors for the Proposed Kulliyyah of Agricultural Science and Science and Natural Respoources, International Islamic University Malaysia. Member of the Board of Directors for Felda Agricultural Services Sdn Bhd. Member of the Board of Directors for FGV R&D Company. Member in Kuala Muda Estate Owner’s Committee (for Felda Holdings Bhd). 36 years in Felda Agricultural Services, involved in R&D and field management of oil palm, cocoa, coffee, tropical fruits, timber and herbs.
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Felda was set up in 1956 with the objectives of poverty eradication and providing land for the landless. The Felda model involved grouping of its 112,635 farmers into 317 organized Schemes and managed like commercial estate. FGV, the newly listed company has 136 estates run commercially. Over the years the Felda group has developed 853,313 ha land in Malaysia, of which 723,394 is planted with oil palm. Felda initially started as a land developer but then the model evolved to include the commercial development. Many of Felda’s departments that were servicing the land projects e.g. milling, transport, security, bulking, engineering, R&D etc. were eventually privatized. In 2007, the Felda Global Ventures (FGV) was incorporated, where the commercial activities in the group were housed. In 2012, Felda Global Venture Holdings (FGVH) was listed, thereby unlocking the wealth in Felda. The Felda farmers have a stake in FGV through Felda’s 33.7% interest, Felda investment cooperative’s 5.7% interest and also through shares held individually, giving them another source of dividend income. Through the growth of FGV organically and inorganically, within the country and abroad, the potentials of greater wealth creation is envisaged.

As Felda developed over the years, it was based on sustainable principles encompassing economic development, social upliftment of its farmers and a growing responsibility to the environment. These are captured in Felda’s sustainability effort by way of its involvement in sustainability certifications such as Roundtable for Sustainable Palm Oil (RSPO), International Sustainability and Carbon Certification (ISCC) and Malaysian Sustainable Palm Oil (MSPO) of its mills and estates/schemes complexes. Felda and Felda Global Ventures are committed to ensure that all its 72 mill complexes will be certified by 2017 or soonest.


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