The chief executive officer of Malaysian palm oil producer FGV Holdings Bhd, Datuk Fakhrunniam Othman, has confirmed his resignation from the company.
In a brief response, Fakhrunniam acknowledged the move but did not provide further details regarding the reasons for his departure.
His resignation comes about six months after FGV was delisted by its majority shareholder, the Federal Land Development Authority (Felda). The government had previously indicated that Felda planned to restructure the company and realign its operations with its original mission of prioritising the interests of Felda settlers, the smallholder farmers associated with the agency.
Sources familiar with the matter said the company’s management dynamics shifted following the delisting, with the board taking a more active role in overseeing operational matters.
One source said Fakhrunniam’s decision to step down may have been influenced by the greater involvement of the board in management decisions, which made it increasingly difficult for him to carry out his responsibilities effectively. He is understood to have left the company on Feb 27.
It is also understood that the contracts of several members of the leadership team were not renewed, reflecting a shift in priorities by the board.
In the absence of a chief executive, FGV’s board has assumed executive oversight of the company through a three-member committee responsible for managing operations.
FGV, once among the world’s largest palm oil producers, made headlines with its 2012 listing, which was one of the biggest initial public offerings globally at the time. However, the company later faced financial challenges and governance issues, leading to significant losses.
In 2020, the group also faced allegations of forced labour on its plantations, resulting in a ban on imports of its products by the United States. The restriction was lifted in January this year after authorities determined that the company had taken sufficient steps to address the concerns.
