Sawit Kinabalu to further improve its performance
Sawit Kinabalu State Government Group of companies with the support from the State Government, will continue to implement appropriate strategies to further improve its performance to enhance its productivity, quality and efficiency to boost its profitability.
On a longer term, the company will continue to strive for sustained profitability and growth through implementing its replanting programme and continue looking for new land either through joint venture or acquisition.
Its Group Managing Director, Salim Mohammad, disclosed this after presenting a mock cheque of RM2O million being loan payment to the State Government, to Finance Ministry permanent secretary Datuk Hj Yussof Datuk Hj Mohd Kassim.
Similarly, he said Sawit Kinabalu would continue its diversification activities in the following business areas, namely development and, marketing of Sandakan Palm Oil Industrial Cluster (POIC), further improving the refinery complex and production of animal feed as a value add to its cattle business.
With these strategies, Sawit Kinabalu will be able to achieve its corporate objectives and will be in the position to further contribute to the State’s coffers.
Salim further emphasized that the strength of Sawit Group lies in its highly dedicated and committed people within the company.
He also said that the continuous support from the leadership of Chief Minister Datuk Seri Musa Aman, who is the chairman of the company and various stakeholders, has enabled the company to achieve its expansion and profitability. The total loan repayment to date by the Group is RM360 million since its corporatisation in 1996, leaving an outstanding balance of RM6O million. Salim said with the favourable palm oil price, Sawit Kinabalu achieved a profit before tax of RM212 million for the period of 10 months and is expected to earn an estimated profit of RM250 million for the year.
With this good profit, Sawit Kinabalu is able to pay the loan payment of RM2O million. Musa, who witnessed the check presentation, thanked Sawit Kinabalu for the RM2O million loan repayment and congratulated the management and staff for recording a handsome profit for the fiscal year 2007.
He said that this proved that any Government-linked companies (GLCs) like Sawit Kinabalu can be successful if properly managed. He is hopeful and confident that Sawit Kinabalu is well positioned to become one of the premier GLCs of Sabah befitting its status as a premier investment arm of the State. In line with the development agenda of the State’s Halatuju and forthcoming launching of Sabah Development Corridor, the Chief Minister said that the Government had identified the oil palm industry as one of the key economic sectors contributing to the prosperity of the State. For instance, the recent implementation of the POICs in Sandakan and Lahad Datu is a clear testimony of the Government’s seriousness in the development of the State’s oil palm industry, which will ultimately benefit the rakyat and the State as a whole. Already seen as Malaysia’s largest palm oil producer, Sabah will soon become the nation’s hub for oil palm related activities.