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(11817-V) |

Annual Report


The planting programme at the Group’s Ladang

Cendana estate in Kemaman, Terengganu is

proceeding well. As at 31 March 2016, approximately

489.09 hectares have been planted. The acute dry

weather had to some extent disrupted the estate’s

planting activities but we anticipate the planting will be

completed before the end of this current year.

Planting and development in recently acquired green

fields in Kelantan has also gained momentum. Site

clearing works on 249.82 hectares in Ladang Dabong,

Gua Musang, Kelantan together with the establishment

of oil palm nursery sites were completed during the year.

Site clearing and terracing works on the two other

estates in Kuala Krai, Kelantan measuring 404.68

hectares in total are ongoing and is expected to

be completed during this current year. Barring a

reoccurrence of extreme weather conditions, field

plantings at these properties are also expected to be

completed during this current year.

Good progress was also made in terms of infrastructure

developments such as roads and buildings, housing for

staff and workers, offices and storage facilities at each

of the Group’s estates.

Overall, the Group expects the continued upward trend

of the Group’s crops over the coming years given the

improving age profile resulting from the sizeable area

of new plantings and more areas moving into the

productive age. Palm oil prices weakened significantly

in 2015 but due to the El Niño effect since the second

half of 2015, prices have improved in the first quarter

of 2016.

The Board is of the view that palm oil, because of its

high yield and low cost of production, is well placed

to continue to benefit from increasing demand for

vegetable oil from a growing world population and the

outlook, therefore, remains positive.

Palm oil mill at PTNJL

Terracing at Phase 2, Ladang Cendana