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JAYA TIASA HOLDINGS BERHAD
16
chairman’s statement (cont’d)
Reforestation
We are currently managing a total of 235,859 Ha for
reforestation areas. With fast-growing tree species such
as Eucalyptus Deglupta (Kamarere), Eucalyptus Pellita and
Kelampayan planted across the plantation areas, the group’s
forest planted area has been expanding and will continue
to trend up steadily.
Reforestation Outlook and Strategy
We are committed to plant forest as an investment for the
future viability of the group and in keeping with the world’s
move towards conservation of natural forests. The division is
not expected to contribute to earnings in the short term given
that the planted forest has a gestation period of 12 to 15
years before it can be ready for commercial harvesting. The
challenge of the group is to improvise silvicultural practices
and place greater emphasis on stringent quality control over
new plantings and its maintenance so as to improve the
survival rate and optimum growth of planted trees.
GOING FORWARD
According to IMF, global activity has broadly strengthened
and modest growth is expected in 2014-15. On domestic
front, Malaysian Government expects real GDP to expand at
5% to 5.5% in 2014 and economists seem to agree with the
forecasts. Key international export economies are expected
to recover so should external demand.
Prices for timber products especially logs are expected
to remain firm in view of restricted supply robust demand
from importing countries. We are optimistic that FY2015
will continue to be a profitable year for the timber division.
Our palm trees have a relatively young age profile. FFB yield
will improve significantly as more trees mature to their prime.
Additional CPO mills will boost our CPO production while
expanding vertical integration should contribute positively
to the palm oil division in the next financial year.
With all these measures and advantages, the Group plans
for a steady long-term growth and will ensure we are well
prepared in the wake of market recovery.
APPRECIATION
On behalf of the board, I wish to thank my fellow board
members for their astute insights and wise counsel
throughout the year. I am also very grateful to our customers,
business associates, the regulatory authorities, financiers
and members of the community for their unwavering support
in the midst of these turbulent times and certainly look
forward to their continued confidence in our organization.
We are deeply indebted to our dedicated management team
and staff who work tirelessly all year long. Last but not least,
I would like to thank you, our valued shareholders, for the
trust and confidence in us, and for your investment in Jaya
Tiasa. We look forward to your continued support as we
build upon the good momentum we have gained.
GEN (RTD) TAN SRI ABDUL RAHMAN BIN ABDUL HAMID
Chairman