Latest news with #FGV
Daily Express
6 days ago
- Business
- Daily Express
Net zero more than renewable energy
Published on: Wednesday, July 23, 2025 Published on: Wed, Jul 23, 2025 By: Sisca Humphrey Text Size: Dr Tan framed the company's climate strategy around two pillars, which are adaptation and mitigation. Kota Kinabalu: Net zero is not just about renewable energy, but it is about a systemic transformation that reshapes supply chains, product design, social commitments and innovation, said Head of Group Transformation at FGV Holdings Berhad Dr Gideon Tan. Speaking at the Marim Conference 2025 in here, recently, Dr Tan said the company's climate action efforts extend far beyond emissions and energy. 'Net zero is not just solar panels or certificates, it's a whole-of-organisation agenda,' he said. To contextualise FGV's sustainability journey, he said the company's complex business divisions, ranging from plantations and downstream processing to logistics, healthcare and even education. He noted that 74 per cent of FGV's palm oil crops come from smallholders, mirroring Asia's broader food system, which heavily depends on them. 'We're not just operating commercial estates. We run clinics and have built 17 schools for the children of migrant workers,' he said. Dr Tan framed the company's climate strategy around two pillars, which are adaptation and mitigation. 'Managing the effects of climate change is adaptation. Tackling the causes is mitigation. We need to do both,' he said. On adaptation, FGV is addressing climate extremes such as flooding and droughts while responding to global policies like the EU Deforestation Regulation (EUDR). Unable to expand land use due to deforestation restrictions, the group has focused on increasing yields per hectare. 'We no longer have the option to expand land. Yield improvement is the only way forward,' he said, citing their 56-year-old R&D centre that develops higher-yield planting materials. FGV has also deployed technologies like the FGV Geodagger, a satellite-linked device for precision replanting. Turning to mitigation, he emphasised the importance of understanding company emissions through inventory baselining, a process recently validated under the SBTi (Science-Based Targets initiative). The group's mitigation roadmap includes energy efficiency, solar power, bioenergy and transportation reforms. 'Our plantations operate in areas without public utilities. We build our own water, wastewater and energy systems,' he said. On energy efficiency, FGV performs audits across its supply chain and encourages internal innovation. One in-house invention is an electric transporter to replace petrol units for field operations. 'We want our employees to be innovators and our electric transporter was built in-house,' Dr Tan said. FGV's solar strategy leverages Malaysia's NETR framework and includes various ownership and feed-in tariff models. However, it's in bioenergy that the company sees significant potential. FGV operates biogas plants capturing methane emissions from mill effluent ponds, which is a major source of GHG. 'We capture methane before it reaches the atmosphere, one tonne of methane is equivalent to 28 tonnes of CO₂,' he said. It also operates two biomass power plants, including one in Sabah's off-grid areas and is exploring diverse applications for palm biomass, ranging from compost to aviation fuel. 'Palm oil uses only 0.5 per cent of the world's agricultural land, yet produces over a third of global vegetable oil supply,' he said, highlighting the efficiency of palm oil in the global food system. FGV also turns biomass into animal feed using black soldier fly larvae in what he calls a 'bio-refinery without a factory'. 'We turn waste into protein with black soldier fly larvae. It's a bio-refinery without a factory,' he said. As for transportation, FGV is replacing petrol-based field vehicles with EV models and trialling B100 biodiesel in logistics trucks and passenger vehicles. Dr Tan reiterated that net zero should not be reduced to a single target or technology. 'Net zero is not a slogan. It's a systemic shift in how we operate across supply chains, products and people,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
10-07-2025
- Business
- New Straits Times
The Sunk Cost Fallacy in Stock Investing
THE closing date for acceptance of the voluntary takeover offer by FGV Holdings Bhd majority shareholders for the shares that are not already owned by the offeror has been extended to Aug 15 from July 7. Under the takeover offer launched on May 26, Felda is offering RM1.30 for each FGV share. FGV conducted one of Malaysia's biggest IPOs and it debuted in 2012 at RM4.55 per share and raised RM10.5 billion. The share price of FGV has declined over the years. It would indeed be hard to stomach the prospect of accepting an offer of RM 1.30 if investors had invested at higher prices or the IPO price RM 4.55. When it comes to making sound investment decisions, one of the most common cognitive pitfalls investors fall into is anchoring their expectations to the original purchase price of a stock. This behaviour is rooted in human psychology but runs counter to rational financial decision-making. In reality, the price you paid for a stock is irrelevant in deciding whether to hold, sell, or buy more. Instead, decisions should be based on future prospects, opportunity costs, and market fundamentals. The Sunk Cost Fallacy The core reason why the purchase price is irrelevant lies in a concept known as the sunk cost fallacy. A sunk cost is any cost that has already been incurred and cannot be recovered. The price you paid for a stock is a sunk cost - whether you paid RM 10 or RM 20 per share, that money is gone. What matters now is what the stock is worth today and what it is likely to be worth in the future. Suppose you bought shares of a company at RM10, and the price has since fallen to RM 6. Many investors would be reluctant to sell at a loss, thinking, "I'll wait until it gets back to RM10 so I can break even." But this thinking is flawed. The fact that you paid RM10 has no bearing on what the stock will do next. If the company's prospects have deteriorated and the fair value is now RM 5, waiting to "break even" could result in even greater losses. Rational Decision-Making: Forward-Looking Analysis Investment decisions should be made with a forward-looking perspective. The central question is: Given what I know today, what is the best use of my capital going forward? Imagine you're holding a stock currently worth RM6. Whether you bought it at RM10 or RM20 is irrelevant. The rational approach is to assess whether this RM6 investment has better return prospects than any other available alternative. If another opportunity offers a higher expected return with similar or lower risk, the logical move is to sell the current stock and reallocate your capital. The goal of investing is to maximize returns, not to recover past losses. Opportunity Cost and Capital Allocation Every ringgit you keep in a stock has an opportunity cost - it could be used to invest elsewhere. If you ignore this because you're fixated on your original purchase price, you may miss better opportunities. For example, holding onto a poorly performing stock because you don't want to "lock in a loss" could prevent you from investing in a high-growth company with superior prospects. Professional investors constantly re-evaluate their portfolios to ensure that every asset earns its place based on future return expectations. Past purchase price never enters the equation. Behavioural Biases and Emotional Investing The inclination to consider the purchase price is a form of anchoring bias, where investors fixate on a reference point (in this case, the buy price) regardless of its relevance. Emotional attachment can also cloud judgment. After all, if you spent hours researching and bought a stock with conviction, admitting it was a mistake can be psychologically difficult. However, good investors are humble and adaptive. Recognising when your thesis was wrong, or when conditions have changed, is a sign of disciplined investing - not failure. Conclusion In investment decision-making, your focus must remain on the present value and future potential of each asset - not its historical cost. The price you paid for a stock is a sunk cost, irrelevant to whether you should buy, hold, or sell. By letting go of anchoring and other behavioural biases, and instead focusing on opportunity costs and forward-looking analysis, you can make more rational, profitable decisions. Remember: the market doesn't care what you paid for a stock, and neither should you.
The Sun
07-07-2025
- Business
- The Sun
Felda transformation to boost rural prosperity and pride
KUALA LUMPUR: Felda is undergoing a major transformation to adapt to modern challenges while maintaining its role as a key driver of rural prosperity and national pride, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Speaking in conjunction with Felda Settlers' Day, Ahmad Zahid, who is also the Minister of Rural and Regional Development, emphasised that Felda is expanding beyond traditional sectors like rubber and oil palm. The agency is now venturing into education, entrepreneurship, food technology, arts, and culture to ensure long-term sustainability. 'Since its establishment 69 years ago, Felda has not only been the backbone of rural development but has also uplifted over 112,638 settlers and nearly three million Felda generations nationwide,' he said in a post on X. Ahmad Zahid outlined key agendas for 2025, including enhancing settlers' economic well-being through higher income opportunities and community empowerment. He stressed the need to strengthen Felda's role in the global food and commodity industry, particularly as Malaysia emerges as a major player in palm oil production through FGV, the world's third-largest crude palm oil producer. The development of Felda's younger generation remains a priority, with a focus on quality education, skills training, and entrepreneurial support. Among recent achievements, the MaresmaF Wind Orchestra from MRSM Ulul Albab Felda Trolak won the Golden Diploma Award at the 26th Prague International Wind Orchestra Festival, showcasing Felda's global potential. This year's Settlers' Day celebrations will feature the 3-Dimensional Mega Carnival (MK3D), combining the Village Entrepreneurs' Carnival and One District One Industry showcase. Titled 'My Village is Global,' the event from July 30 to August 3 aims to promote Felda products and community innovation on an international scale. – Bernama
The Star
04-07-2025
- Business
- The Star
FGV takeover offer extended
The acceptance deadline for the takeover offer has been extended to Aug 15, 2025. PETALING JAYA: The Federal Land Development Authority (Felda) has decided to extend the acceptance deadline for its takeover offer of FGV Holdings Bhd to Aug 15, 2025. In a notice issued by Maybank Investment Bank Bhd on behalf of Felda, it said the deadline was extended from 5pm on July 7. Felda has proposed a cash consideration of RM1.30 per share for all outstanding shares in FGV not currently held by the agency. As at 5pm on July 3, Felda and its parties acting in concert collectively owned 89% of FGV's equity, amounting to 3.24 billion shares.
New Straits Times
03-07-2025
- Business
- New Straits Times
Felda now owns 89pct of FGV, extends closing date for acceptance to Aug 15
KUALA LUMPUR: The closing date for Federal Land Development Authority's (Felda) takeover offer for all remaining shares in FGV Holdings Bhd that it does not already own has been extended to August 15. This will be the final closing date, according to Maybank Investment Bank Bhd (Maybank IB) on behalf of Felda. The previous deadline for FGV's minority shareholders to accept the offer is July 7. Last month, Felda launched an unconditional voluntary takeover offer for all remaining shares in FGV that it does not already own at RM1.30 per share. This is part of Felda's long-term strategic plan to privatise FGV and consolidate its control over the plantation company. Felda and parties acting in concert already collectively held about 89 per cent of FGV shares as of today, Maybank IB said. The offer targets the remaining stake in FGV, comprising about 1.1 billion shares. If the takeover results in Felda holding 90 per cent or more of FGV shares, it intends to delist the company from Bursa Malaysia. The cash offer represented a 9.91 per cent premium over the six-month volume-weighted average price of FGV shares up to the last trading day before the initial notice of offer. FGV has not been able to comply with Bursa's free float ruling, which requires at least 25 per cent of the shares to be held by the public, since February 2021. As of February this year, FGV's public shareholding reportedly had fallen to 13.09 per cent, below Bursa's 25 per cent minimum threshold. Bursa had rejected FGV's application for an extension and has instructed the company to rectify the shortfall by Sept 10 this year, failing which trading could be suspended. This is the second attempt by Felda to privatise FGV. The first was in December 2020, which resulted in the former acquiring more than 82 per cent of FGV. The offer price in 2020 was also RM1.30. Based on FGV's latest annual report, the minority shareholders include the Sabah government and Yayasan Islam Terengganu.
