We have been developing oil palm plantations for the past 8 years in Sabah, Malaysia and West Sumatra, Indonesia. We have enlarged our plantation hectarage in West Sumatra by 7,000 ha to a total of 12,000 ha. In view of good potential of the oil palm industry, we continue to look for opportunities to expand our plantation hectarage in certain parts of Indonesia.

We have 4 palm oil mills in Sabah, Malaysia and West Sumatra, Indonesia. 3 of which are located along the Tawau-Lahad Datu-Sandakan highway (the Sabah Oil Palm Belt), where nearly 70% of the oil palm in Sabah is planted. The 4th palm oil mill is in Padang, West Sumatra, Indonesia. The combined capacity of the mills are nearly 1.5 million tonnes per annum.

Sabah is the largest palm oil producing state in Malaysia, as the state's annual FFB production exceeds 25 million tonnes. Along the Sabah Oil Palm Belt, 70% or 18 million tonnes of FFB are produced. We remain optimistic on this segment of the palm oil industry in Sabah since we have 1.05 million tonnes capacity to cater for processing demand along the Sabah Oil Palm Belt.

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