16
JAYA TIASA HOLDINGS BERHAD
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 growth is projected at 3.3% in
2015, marginally lower than in 2014, with a gradual pickup
in advanced economies and a slowdown in emerging market
and developing economies. In 2016, growth is expected to
strengthen to 3.8%. On domestic front, there are growing
concerns on the plunging currency, falling oil prices and
the political tension with consumer sentiment index slid to
around 70 according to research from Malaysian Institute
of Economic Research.
Prices for timber products especially logs are expected
to remain firm in view of restricted supply and the robust
demand from importing countries. We are optimistic that
FY2016 will continue to be a profitable year for the timber
division.
Our palm trees have a relatively young age profile. FFB yield
will improve 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 would like to convey sincere thanks
to my management team and all employees of the Group,
whose undivided support and dedication was so crucial and
necessary for the future growth of our Group. I am grateful
to you, our shareholders, customers, business partners,
bankers and the relevant authorities and members of the
community for your invaluable support and deep trust in
the Group.
GEN (RTD) TAN SRI ABDUL RAHMANBIN ABDUL HAMID
Chairman
