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KUALA LUMPUR: FGV Holdings Berhad (FGV), a leading agribusiness and one of the world’s top producers of crude palm oil, reaffirms its commitment to sustainability and human rights by enhancing the livelihoods of smallholders, including FELDA settlers and independent smallholders, through comprehensive support programmes aimed at increasing income and promoting sustainable practices. FELDA settlers and independent smallholders often face challenges such as lower incomes, limited access to resources and training, and difficulties in meeting sustainability standards. Recognizing these challenges, FGV engages with smallholders through targeted awareness campaigns, extensive outreach programmes, and technical advice on agronomy and industry training. These efforts aim to equip smallholders and settlers to meet sustainability-related requirements and thrive in the evolving palm oil industry and global market. As part of its sustainability efforts, FGV fully supports the Malaysian Sustainable Palm Oil (MSPO) certification scheme. All of FGV’s palm oil mills and estates are MSPO certified, and all suppliers, including smallholders working with the company, are required to comply with relevant sustainability certification schemes. As an active member of the Roundtable on Sustainable Palm Oil (RSPO), FGV is encouraged by FELDA’s commitment to RSPO certification and supports this initiative by offering technical advice and awareness-raising programmes. Achieving certification allows smallholders to access premium markets, enhance their income potential, and promote sustainable agricultural practices. “FGV significantly contributes to the economic well-being of FELDA settlers by purchasing a substantial amount of Fresh Fruit Bunches (FFB) from them. FGV owns 66 mills across Malaysia, processing over 18 million metric tonnes of FFB annually, 72% of which is sourced from FELDA settlers and independent smallholders, among others,” said Nurul Hasanah Ahamed Hassain Malim, FGV’s Group Chief Sustainability Officer. She added that facilitating the certification of smallholders under sustainability schemes benefits not only the participants but the industry as a whole. Being certified offers several benefits, including improved marketability, as certified products are preferred by sustainability-conscious buyers and can fetch premium prices. Certification also requires strict adherence to environmental standards, ensuring the long-term resilience of agricultural practices while preserving the environment. Additionally, certification schemes often include social criteria that promote fair labour practices, improved working conditions, and the well-being of the community. Dato’ Mohd Banuri Aris, FELDA’s Deputy Director General (Community Development), emphasized the collaborative efforts between FELDA and FGV through various programmes aimed at enhancing smallholders’ livelihoods. These include training sessions and technical support to help settlers meet sustainability standards and improve their agricultural practices. The collaboration also extends to broader community support projects, such as improving plantation infrastructure and providing educational opportunities. “The collaboration between FELDA and FGV has led to increased productivity, better market access, and improved sustainability practices among settlers, contributing to their economic and social upliftment. FELDA has ensured that all our schemes are MSPO certified, allowing us to access extensive markets for our CPO, which in turn translates into stable income for our settlers,” said Dato’ Mohd Banuri. He added that FELDA operates with a dual focus: empowering and supporting settlers through its social arm, while generating income through its commercial arm. This structure enables FELDA to fulfil its objectives of sustainable development and stakeholder well-being. In conjunction with the upcoming 67th Merdeka and Malaysia Day celebrations, FGV has launched its “Teruskan Meneroka” campaign, paying tribute to the unsung heroes who have contributed to Malaysia’s progress, including the FELDA settlers and smallholders. The “Teruskan Meneroka” campaign is featured across FGV Holdings’ social media platforms such as Facebook, Instagram, TikTok, LinkedIn, and YouTube, as well as on the company’s website at www.fgvholdings.com.

KUALA LUMPUR: The Malaysian economy is growing faster than expected, and the local currency has appreciated quite noticeably. However, the central bank has maintained the interest rate at 3.00%, in accordance with the economists’ expectations. Still, Octa analysts expect that the BNM may soon lower the rates. Bank Negara Malaysia (BNM), Malaysia’s central bank, announced its policy rate decision on Thursday, 5 September. Like most central banks worldwide, BNM strives to balance low inflation and sustainable economic growth. Its key monetary policy instrument is the Overnight Policy Rate (OPR). By adjusting the OPR, BNM influences interest rates throughout the Malaysian economy, impacting borrowing costs for businesses and consumers and ultimately influencing economic activity and inflation. It was a difficult decision for the central bank to maintain the interest rate at its current level. The bank is trying to strike a delicate balance between a strong economy and potentially incendiary inflation on the one hand and a dovish Federal Reserve (Fed) and appreciating ringgit on the other. According to the latest data published on 16 August, the annual growth rate of the gross domestic product (GDP) accelerated to 5.9% in Q2 2024, its fastest pace in 18 months. Economic growth for 2024 is expected to exceed the central bank’s forecast of 4-5%, driven by a continued increase in consumer spending and a recovery in exports. ‘Lowering borrowing costs when the economy is expanding risks spurring inflation, especially given that the government continues to gradually phase out subsidies programs,’ says Kar Yong Ang, a financial market analyst at Octa broker. However, inflation seems to have stabilised lately. Malaysia’s consumer price index (CPI) rose 2.0% in July from a year earlier, matching the increases of the previous two months. Furthermore, the rise was slightly less than the 2.1% increase forecast in a Reuters poll. Meanwhile, the Malaysian ringgit has strengthened against the US dollar, significantly reducing import prices. Indeed, Octa analysts expect Malaysian inflation to remain low in Q4 due to strong ringgit. At the same time, many countries are gradually reducing or have already reduced interest rates. The BNM’s decision to keep the rates unchanged is somewhat controversial. ‘It was a tough decision to make,’ argues Kar Yong Ang. ‘BNM is probably thinking about how and when to cut the rate so that it does not fall far behind other central banks––especially the Fed. However, the BNM did not choose to lower rates ahead of the Fed. A sharp fall in USDMYR supports the case for a rate cut later this year as inflation risks seem to be well-anchored at this point.’ Still, a recent Reuters poll of economists expects the BNM to maintain interest rates at their current levels until the end of 2026. ‘As we expected, BNM held the rates unchanged, but the likelihood of a reduction in the near term has increased,’ says Kar Yong Ang, adding that future decisions will largely depend on what the Fed does and on the overall economic conditions in the global market. In particular, the appreciation of the domestic currency, which is currently taking place, has a negative impact on exports but also helps push inflation down. There is also a trend towards lower interest rates, followed by other countries in the region––notably, the Reserve Bank of New Zealand (RBNZ) and the Central Bank of the Philippines have lowered rates in recent weeks. ‘We anticipate a decrease in the interest rate either this year or in Q1,’ said Kar Yong Ang. Octa analysts expect USDMYR to drop below 4.250 in the near term.

KOTA DAMANSARA: JF Technology Berhad (“JF Tech” or the “Group”), a leading innovator and manufacturer of high-performance test contacting solutions for global integrated circuit (“IC”) makers, announced its fourth quarter (“4QFY24”) and full year financial results today for the period ended 30 June 2024 (“FY24”). Managing Director of JF Technology Berhad, Dato’ Foong Wei Kuong, commented on the results, stating, “FY24 has been a challenging year for us on the back of the slowdown in the semiconductor sector and global uncertainties. Nevertheless, we continue to be positive on the long-term prospects of the Group especially with the positive signs for the industry. The World Semiconductor Trade Statistics (“WSTS”) is forecasting a 16.0% growth for global semiconductor sales in 2024 and 12.5% in 2025. Based on the growth projections, global semiconductor sales would reach $611.2 billion and $687.4 billion respectively for 2024 and 2025, which would be the highest-ever annual sales in total.” He further added, “Moving forward, our focus remains on gaining further traction for our 6 growth drivers. The Group made a breakthrough in August 2024, as we entered into a cross-distribution agreement with Ironwood Electronics, Inc. (“Ironwood Electronics”). Together, we will be leveraging on each other’s strong expertise and established network to further expand our geographical presence.” “Meanwhile, for our joint venture (“JV”) with Shenzhen HFC Co., Ltd. (“Shenzhen HFC”) to design and manufacture electromagnetic interference shielding materials, thermal interface materials, absorbing materials, etc., machine installation is ongoing and production will commence thereafter. On the other hand, the demand outlook for China remains encouraging, with utilization at our China facility continuing to increase. All in all, the long-term outlook of the Group continues to be bright supported by the aforementioned factors. Barring unforeseen circumstances, the Board expects the FY2025 financial performance to be satisfactory,” Dato’ Foong concluded in his comments.  Revenue for FY24 was RM41.6 million, down from RM45.4 million in the previous year, mainly due to softer demand for test contacting sockets. However, contributions from the test interface products division and Kunshan manufacturing facility partially offset these effects.  Revenue from China increased by 10.6% year-on-year (“YoY”) to RM15.0 million from RM13.6 million in FY23. Profit before tax (“PBT”) for FY24 was RM6.3 million, with a profit after tax and non-controlling interest (“PATNCI” or “net profit”) of RM5.8 million, compared to RM11.7 million and RM12.2 million respectively in the prior year. This was primarily due to shifts in product mix, share of loss of an associate, and impairment of intangible assets. JF Tech declared a final dividend of 0.25 sen per share for FY24 amounting to RM2.3 million, reflecting a dividend payout of 39.5% based on a net profit of RM5.8 million.  

KUALA LUMPUR & SINGAPORE: Malaysia Smelting Corporation Berhad (“MSC” or “the Group”), a prominent tin miner and metal producer, has released its financial results for the second quarter (“2QFY24”) and first half ended June 30, 2024 (“1HFY24”). In 2QFY24, MSC reported a 25.6% year-on-year increase in revenue to RM410.8 million, up from RM327.0 million in 2QFY23, driven by higher average tin prices. However, net profit attributable to owners declined to RM16.7 million from RM28.4 million in the same period last year. The tin smelting segment’s profit after tax fell to RM4.7 million compared to RM16.3 million in 2QFY23 due to scheduled maintenance of the Top Submerged Lance (“TSL”) furnace from mid-May to mid-July 2024, impacting production and revenue. Conversely, the tin mining business saw a 45.2% increase in profit after tax to RM24.9 million in 2QFY24, buoyed by favourable tin prices of RM153,400 per metric tonne compared to RM116,500/MT in 2QFY23. For the first half of FY24, MSC’s revenue grew 15.9% year-on-year to RM773.3 million, supported by higher average tin prices of RM139,100/MT compared to RM116,300/MT in 1HFY23. Net profit for 1HFY24 amounted to RM35.0 million, down from RM63.9 million in the prior year. Dato’ Dr. Patrick Yong, Group Chief Executive Officer of MSC, commented, “In the first half of 2024, we benefited from favourable tin prices driving top-line growth. However, our profitability was impacted by planned maintenance of the TSL furnace, reducing tin output and smelting income.” Looking ahead, Yong emphasized MSC’s commitment to enhancing operational efficiencies, including the phased closure of the Butterworth smelting facility by 2025 and consolidation at the Pulau Indah smelter in Port Klang. The Pulau Indah facility features a 1.26 megawatt-peak (“MWp”) solar photovoltaic system to lower carbon footprint and energy costs. “In tin mining, we aim to increase daily output and productivity through technology upgrades, expanded mining operations, and strategic partnerships,” Yong added. “These initiatives are integral to securing MSC’s sustainable growth, positioning us to tackle future challenges and seize opportunities in the tin industry.”