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2.0 COMPANY BACKGROUND
2.1 Company Information
Genting Plantations Berhad ("Genting Plantations"), a 54.60% owned subsidiary of
Genting Group, is one of the fastest-growing plantation companies listed on the Main
Market of Bursa Securities. Genting Plantations incorporated in Malaysia on 29
September 1977, Genting Plantations was listed on Bursa Securities on 30 August 1982.
At 29 February 2012, it had a market capitalization of RM7.1 billion (US$2.4 billion).
Genting Plantations currently has about 133,000 hectares of plantation land
(compared to 41,000 hectares in 2000) in Malaysia and Indonesia. Since its inception,
Genting Plantations has established itself as a reputable and reliable palm oil producer as
well as one of the lowest-cost palm oil procedures in Malaysia. To date, the division has
6 palm oil mills and a total land bank of over 71,000 hectares, an expansion of more than
five folds from the 13,700 hectares over 20 years ago. Total milling capacity to date is
255 tons per hour. Whilst the plantation business remains its core activity, Genting
Plantations has also ventured into property development. The first project by Genting
Plantations's property arm, Genting Property Sdn Bhd ("Genting Property"), is the 55-
hectare Genting Cheng Perdana in Central Melaka, which is near the tail-end of
development.
Its second project is the 284-hectare Genting Permaipura in Kedah. Located in the
northern part of Malaysia near the town of Sungai Petani, this comprehensive township
offers a mix of commercial properties, bungalow lots, residential houses and an 18-hole
golf course with a clubhouse, The Genting Permaipura Golf & Country Club.
In the southern state of Johor, Genting Property has two projects: Genting
Indahpura and Genting Pura Kencana Sri Gading. Genting Indahpura is a 7,000-acre
integrated township with a mix of residential and commercial properties located near the
town of Kulai. Easily accessible from major highways, the township is 10 minutes away
from the state’s Senai Sultan Ismail International Airport by car.
Genting Pura Kencana Sri Gading is the newest real estate project from Genting
Property and is located near the town of Batu Pahat. This project can be easily reached
from Malaysia’s most comprehensive highway, the North-South Expressway, and is
located near amenities such as a hypermarket, malls and tertiary institutions.
Genting Plantations has also boldly ventured into the biotechnology industry. In
2007, the company through subsidiary ACGT Sdn Bhd entered into a joint venture with
US-based Synthetic Genomics, Inc. In line with its aim to be a world-class centre of
excellence in genomic science in Malaysia, ACGT is receiving technical assistance from
the highly acclaimed US-based J. Craig Venter Institute to explore the use of genomics-
based techniques to improve yields and profit streams of oil palm.
Company : Genting Plantations Berhad (Genting Group- No. 24706)
Address : 24th Floor, Wisma Genting, Jalan Sultan Ismail, 50250
Kuala Lumpur, Malaysia
Telephone Number : (603) 2178 2288 / (603) 2333 2288
Fax : (603) 2161 5304
E-mail Address : [email protected]
Form of Company : Private Limited Liability Company
Key People : Tan Sri Mohd Zahidi Bin Hj Zainuddin (Chairman)
: Tan Sri Lim Kok Thay (Chief Executive)
Total Lands : 71,000 hectares
Main Activities : Plantation, Property, Biotechnology
Registration Number : 34993-X
Date of Commencement : 29 September 1977
Website : http://www.gentingplantations.com/
2.2 Company History
Genting Plantations Berhad can also name it as Genting Plantations, formerly known as
Asiatic Development Berhad, is one of the fastest growing plantation companies listed on
the main board of the Kuala Lumpur Stock Exchange (KLSE). Incorporated in Malaysia
as a private limited company on 29 September 1977 and it is under the name of Asiatic
Development Sdn Bhd.
It became a wholly owned subsidiary of Genting Berhad ("Genting") on 22
February 1980 to spearhead Genting's plantation business. In April 1980, Genting
Plantations commenced business through the successful acquisition of the Rubber Trust
Group comprising 3 Hong Kong domiciled rubber companies which owned some 13,700
hectares of plantation land in Peninsular Malaysia.
In June 1981, the Ko Rubber Companies, which owned about 10,000 hectares of
plantation land in Peninsular Malaysia. Listed on Bursa Malaysia on 30 August 1982,
Genting Plantations currently ranks amongst the top 10 listed companies in terms of
market capitalization in the plantation sector.
In 1985, Genting Group acquired Asiatic SDC Sdn Bhd, whose plantation
business comprised some 4,000 hectares of oil palm plantation and 20 tons per hour oil
mill. A quick succession of land acquisitions in Sabah ensued for Genting Plantations,
starting with the takeover of Tanjung Bahagia Sdn Bhd in 1988 which owns 8,094
hectares of jungle land, followed by a joint venture arrangement with Land Worthy Sdn
Bhd (now known as Asiatic Tanjung Bahagia Sdn Bhd) in 1989 which added another
4,039 hectares
In a subsequent rationalization of Genting Group's plantation activities, ownership
of ASDC was transferred to Genting Plantations in 1991. The first project by Genting
Plantations's property arm, Genting Property Sdn Bhd ("Genting Property") is the 55-
hectare Genting Cheng Perdana in Central Melaka. Officially launched in October 1993,
the project has turned out to be quite a success with its first phase of single- and double-
storey houses completed and handed over to purchasers about 9 months ahead of
schedule. Since then, 3 other phases have been completed and handed over in good time.
In 1994, Genting Plantations entered into a joint venture with a Sarawak state
agency to establish 30/60 tons per hour palm oil mill in Serian, Sarawak. What followed
next was the launching of the 284-hectare Genting Permaipura project in late 1994.
Located about 10 km from the fast-growing town of Sungai Petani, Kedah, a town poised
to become the commercial/industrial hub of the northern region in Malaysia, Genting
Permaipura comprises commercial and entertainment centres, bungalow lots, residential
houses and shop-offices. Also included in this project is an 18-hole golf course with a 2-
tier driving range which sprawls over 160 acres of prime land against the majestic
backdrop of Gunung Jerai and a clubhouse, The Genting Permaipura Golf & Country
Club.
Between 1991 and 1996, another 5,730 hectares were acquired. With all these
jungle lands fully cultivated, Genting Plantations, with its long term vision to further its
plantation interest, continues to expand its land bank. Since 1999, Genting Plantations
has collaborated with World Wide Fund for Nature ("WWF") in support of its "Partners
for Wetlands") programme to conserve the Kinabatangan floorplains aimed at
rehabilitating and restoring riverine and wetland habitats as wildlife sanctuary and
preservation of biodiversity. The Kinabatangan floorplains will serve as a corridor for
wildlife movement of Borneo flagship species, such as pygmy elephant, orang utan and
proboscis monkey. The Group, noted as the first plantation company to participate in the
programme, has extended its partnership with WWF for another 15 years from 2006.
Notable acquisitions include the 8,830-hectare agricultural land near the Sungai
Tongod and the 5,611-hectare oil palm estate near Bukit Garam in 2001 and 2002
respectively. In May 2004, Genting Plantations has completed yet another acquisition of
some 6,753 hectares of oil palm estates together with 60 tons per hour oil mill in
Kinabatangan, Sabah.
In June 2005, Genting Plantations embarked on its maiden foray into the
plantation business overseas. This expansion of plantation activities in the Republic of
Indonesia is on a joint venture basis with a respectable palm oil producer in the country,
the Sepanjang Group. The Genting Plantations-Sepanjang 70:30 joint venture will
develop some 76,000 hectares of agricultural land into oil palm plantation.
Genting Plantations entered into another joint venture in 2008 to develop 45,000
hectares in Ketapang. Following these recent acquisitions, Genting Plantations's current
land bank is slated to increase to over 186,000 hectares in Indonesia and Malaysia. The
Group continues to be actively working towards adding more. As at 30 April 2009,
Genting Plantations is a 54.7% owned subsidiary of Genting Berhad.
On the international front, the Group is one of the first 14 members of the
Roundtable of Sustainable Palm Oil ("RSPO"), a multi-stakeholder association, whose
primary objective is to promote the production and use of sustainable palm oil through
co-operation within the supply chain and open dialogue with its stakeholders. Genting
Plantations will continue to pursue and adopt good plantation management practices to
uphold the well-being of the environment it operates in.
At present, Genting Plantations owns 6 oil mills, one in Peninsular Malaysia,
which attained the ISO 9002(1994) Quality Management Systems status in 2001 (which
was subsequently updated to the ISO 9001(2000) in 2002) and the others in Sabah. To
date, the division has 6 palm oil mills and a total land bank of over 71,000 hectares, an
expansion of more than five folds from the 13,700 hectares over 20 years ago. Genting
Plantations is actively involved in environmental conservation and committed to
sustainable development of oil palm cultivation.
2.3 Company Vision
Genting Plantation Sdn Bhd strives:
To become a leader in the plantation industry.
To embark aggressively onto value-added downstream manufacturing activities
which are synergistic to our core business.
To enhance return on the company land bank through property development
activities.
To adopt a market-driven and customer-oriented approach, with emphasis on
product quality and diversity.
To strengthen our competitive position by adopting new technologies and
innovations.
As people are the key to achieving the company's vision, Genting Plantation is always
committed to develop their employees and create a highly motivating and rewarding
environment for them.
2.4 Company Mission (Genting Group)
Genting Plantation Sdn Bhd will:
Be responsive to the changing demands of our customers and excel in
providing quality products and services.
Be committed to innovation and the adoption of new technology to achieve
competitive advantage.
Generate a fair return to our shareholders.
Pursue personnel policies which recognize and reward performance and
contributions of employees and provide proper training, development and
opportunities for career advancement.
Be a responsible corporate citizen, committed to enhancing corporate
governance and transparency.
2.5 Company Logo
2.6 Company Principal Activities
The principal activities of the Company are plantation, investment holding and provision
of management services. The principal activities of the subsidiaries include plantation,
property development and genomics research and development. Details of the principal
activities of the subsidiaries, jointly controlled entities and associates are set out in Note
44 to the financial statements. There have been no significant changes in the nature of
the activities of the Group and of the Company during the financial year.
2.7 Company Governance
Gen. (B) Tan Sri Mohd Zahidi Bin Hj Zainuddin (Chairman)
Gen. (B) Tan Sri Mohd Zahidi bin Hj Zainuddin
(Malaysian, aged 65), appointed on 1 July 2005,
is the chairman of the Genting Plantation Sdn
Bhd. He holds a Masters of Science Degree in
Defence and Strategic Studies from the Quaid-I-
Azam University, Islamabad, Pakistan and had
attended the Senior Executive. Programme in
Harvard University, United States of America in 2002. He is a Fellow of the Malaysian
Institute of Management (MIM). He has had a distinguished career in the Malaysian
Armed Forces for 38 years 11 months, before retiring from the Force on 30 April 2005.
Tan Sri Mohd Zahidi is also a Director of Genting Malaysia Berhad (formerly known as
Resorts World Bhd), Cahya Mata Sarawak Berhad, Affi n Holdings Berhad, Wah Seong
Corporation Berhad, Bintulu Port Holdings Berhad and Bandar Raya Developments
Berhad.Tan Sri Zahidi was made a Member of Dewan Negara Perak, elected by DYMM
Paduka Seri Sultan Perak on 25 November 2006 and also a Director of Yayasan Sultan
Azlan Shah.He was also made a Member of the Malaysian–Indonesian Eminent Persons
Group (EPG) elected by the Prime Minister in July 2008.
Tan Sri Lim Kok Thay (Chief Executive)
Tan Sri Lim Kok Thay (Malaysian, aged 61), appointed on
29 September 1977, is the Chief Executive and Director. He
holds a Bachelor of Science Degree in Civil Engineering
from the University of London. He attended the advanced
management programme of Harvard Business School,
Harvard University in 1979. He is also the Chairman &
Chief Executive of Genting Berhad and Genting Malaysia
Berhad (formerly known as Resorts World Bhd); the Executive Chairman of Genting
Singapore PLC and Resorts World at Sentosa Pte Ltd; and the Chairman of Genting UK
Plc. He is the Chairman and Chief Executive Officer of Genting Hong Kong Limited
(formerly known as Star Cruises Limited), a company listed on The Stock Exchange of
Hong Kong Limited. In addition, he sits on the Boards of other Malaysian and foreign
companies. He joined the Genting Group in 1976 and has since served in various
positions within the Group. He also sits on the Board of trustees of several charitable
organisations in Malaysia. In 2009, he was named “Travel Entrepreneur of the Year
2009” by Travel Trade Gazette (TTG) Asia and “The Most Influential Person in Asian
Gaming 2009” by Inside Asian Gaming for his significant contributions to the leisure and
travel industry.
BOARD OF DIRECTORS
Gen. (B) Tan Sri Mohd Zahidi Bin Hj Zainuddin (Chairman)
Tan Sri Lim Kok Thay (Chief Executive)
Lt. Gen. (B) Dato' Haji Abdul Jamil Bin Haji Ahmad (Indpndnt Non-Executive Director)
Encik Mohd Din Jusoh (Indpndnt Non-Executive Director)
Lt. Gen. (B) Dato' Abdul Ghani Bin Abdullah (Indpndnt Non-Executive Director)
Mr Quah Chek Tin (Indpndnt Non-Executive Director)
Mr Ching Yew Chye (Indpndnt Non-Executive Director)
Mr Lim Keong Hui (Indpndnt Non-Executive Director)
PRINCIPAL EXECUTIVE OFFICERS
Tan Sri Lim Kok Thay (Chief Executive)
Mr Tan Kong Han (Deputy Chief Executive)
Mr Yong Chee Kong (President & Chief Operating Officer)
Mr Tan Wee Kok (Chief Financial Officer)
Haji Abd Halim bin Abd Majid (Executive Vice President, Plantation (Malaysia))
Mr Phang Kong Wong (Executive Vice President, Property)
Mr Derrik Khoo Sin Huat (Chief Executive Officer, ACGT Sdn Bhd)
AUDIT COMMITTEE
Gen. (B) Tan Sri Mohd Zahidi bin Hj Zainuddin (Chairman/ Indpndnt Non-Executive Director)
Lt. Gen. (B) Dato’ Haji Abdul Jamil bin Haji Ahmad (Member/Indpndnt Non-Executive
Director)
Encik Mohd Din Jusoh (Member/Indpndnt Non-Executive Director)
Mr Quah Chek Tin (Member/Indpndnt Non-Executive Director)
Lt. Gen. (B) Dato’ Abdul Ghani bin Abdullah (Member/Indpndnt Non-Executive Director)
REMUNERATION COMMITTEE
Gen. (B) Tan Sri Mohd Zahidi bin Hj Zainuddin (Chairman/ Indpndnt Non-Executive Director)
Tan Sri Lim Kok Thay (Member/Chief Executive)
Lt. Gen. (B) Dato' Haji Abdul Jamil bin Haji Ahmad (Member/Indpndnt Non-Executive
Director)
Encik Mohd Din Jusoh (Member/Indpndnt Non-Executive Director)
SECRETARY
Ms Loh Bee Hong
2.8 Company Structure
2.9 Company Regional Presence
Genting Estate and Mills Location
Plantation Region Oil Mills Region
ASIATIC Bukit Sembilan Estate Kedah ASIATIC Ayer Item Oil Mill Johor
ASIATIC Selama Estate Kedah ASIATIC Sabapalm Oil Mill Sabah
ASIATIC Sepang Estate Selangor ASIATIC Mewah Oil Mill Sabah
ASIATIC Tebong Estate Melaka ASIATIC Tanjung Oil Mill Sabah
ASIATIC Cheng Estate Melaka ASIATIC Trushidup Oil Mill Sabah
ASIATIC Tanah Merah Estate Johor ASIATIC Indah Oil Mill Sabah
ASIATIC Sri Gading Estate Johor Joint Venture
ASIATIC Sungai Rayat Estate Johor Serian Palm Oil Mill Sarawak
ASIATIC Kulai Besar Estate Johor SIS Mulia Estates Kalimantan
ASIATIC Sabapalm Estate Sabah Kapuas Estates Kalimantan
ASIATIC Bahagia Estate Sabah
ASIATIC Tenegang Estate Sabah
ASIATIC Landworthy Estate Sabah
ASIATIC Layang Estate Sabah
ASIATIC Mewah Estate Sabah
ASIATIC Indah Estate Sabah
ASIATIC Permai Estate Sabah
ASIATIC Jambongan Estate Sabah
ASIATIC Sekong Estate Sabah
ASIATIC Suan Lamba Estate Sabah