KUALA LUMPUR: Sime Darby Plantation Bhd (SDP) says it will need to continuously strengthen its value proposition as a future-ready organisation that is well-positioned to attract the best talents, deploy the most innovative technologies and deliver sustainable outcomes for its stakeholders.
Group managing director Mohamad Helmy Othman Basha said as SDP continues its journey into 2020 and beyond, its primary responsibility is to prepare its business and people to efficiently manage the emerging economic, environmental, social and governance risks.
“The role of the group’s Research and Development (R&D) will thus be critical to devise new solutions that will enable our business to serve the needs of our various stakeholders and contribute towards solving various global challenges such as deforestation and food security for an ever-increasing world population.
“During financial year 2019 (FY2019), our R&D team was on track to plant more than 2,300 ha of our GenomeSelectTM palms in multiple locations across Malaysia and commenced test seed production for new GenomeSelect mother palms,” he said in SDP’s 2019 annual report here today.
With a target to cater to full replanting needs throughout Malaysia by 2023, he said this breakthrough palm oil breed that enables yield improvement of 15 per cent above its previous best planting material is going to be yet another game-changer that will future-proof its business and performance.
Moving forward, he said the group will continue to focus on improving the execution of various strategies and value creation initiatives that have been identified to achieve a balanced upstream and downstream portfolio.
“Our upstream operations will continue to rigorously pursue operational excellence improvements with strategies in accelerated replanting, best agricultural practices as well as greater automation, mechanisation and digitalisation,” said Mohamad Helmy.
As for Sime Darby Oils (SDO), he said, key areas of focus will be product de-commoditisation, asset utilisation and optimisation, strengthening the supply chain network for seamless connectivity globally, and improving customer satisfaction through productivity and efficiency improvement measures.
“I believe that all these continuing initiatives will positively contribute in improving our balance sheet position, while helping the group to become more robust and resilient against various externalities.
“Despite the global uncertainties we are currently facing due to the COVID-19 pandemic, I believe that what the group has achieved in FY2019 will resonate strongly in the year 2020 and beyond, and will help us to steer through a sustainable path amidst the challenging tide ahead,” he said.
Mohamad Helmy said the group will continue to operate to a set of high standards, ethics and integrity, industry best practices and resilience to continuously raise the bar on sustainable growth. -Bernama