KUCHING: Ta Ann Holdings Bhd’s licences for three forest management units (FMU) in the Song-Kapit region have been renewed for a period of 30 years until 2053.
These are the Kapit FMU, Pasin FMU and Raplex FMU covering a total area of 346,021 hectares, according to Ta Ann executive chairman Datuk Amar Abdul Hamed Sepawi.
He said in 2014, the group embarked on a sustainability journey towards Malaysian Timber Certification Scheme — Programme for the Endorsement of Forest Certification (MTCS-PEFC) forest management certification, and this involved consolidating and amalgamating its timber licences in the Song-Kapit region into the three FMUs.
“Today, we are proud to announce that all three active FMUs have obtained the Certificate for Forest Management (Natural Forest) under MTCS, a scheme endorsed by the PEFC. We have maintained certification status through rigorous surveillance audits, which reflects our unwavering commitment to sustainable forest management,” he added in the company’s 2022 annual report.
Hamed said the renewals of the licences signified significant recognition of Ta Ann in its efforts in the journey towards sustainable forest management, adding that the group is determined to continue this journey towards a more sustainable future.
In the oil palm sector, Hamed said the group remains dedicated to the Malaysian Sustainable Palm Oil (MSPO) standard, and adheres to no-deforestation and no new planting on peat soil policies.
All the group’s 13 oil palm plantations and three palm oil mills have obtained the MSPO Certificates.
“As a resource-based company, the board (of directors) remains steadfast in its commitment to sustainable resource management, prioritising good agricultural practices for our palm oil division as well as reduced impact logging for our logging activities.
“Additionally, we aim to establish post-logging forest plantations to help restore the ecological balance of the areas we operate in.
“Our company also adheres to good corporate governance principles to ensure responsible and ethical operations,” he added.
Ta Ann group has a total plantation landbank of 72,499 hectares, with total planted area of 49,968 hectares. About 80 per cent of the planted area is in the prime age (8-20 years),which is the period of highest production of fresh fruit bunches (FFBs).
As a pioneer in Sarawak’s forest plantation project, Ta Ann group has total planted forest covering 30,971 hectares of fast-growing timber species, mainly acacia.
Reviewing the group’s financial performance for 2022 (FY2022), Hamed said Ta Ann chalked up record revenue of RM2.19 billion and a pre-tax profit of about RM524.3 million, up RM30.6 million or six per cent from RM493.7 million registered in FY2021.
“The increase in net profit was mainly contributed by the higher average selling price for our plywood products, crude palm oil (CPO) and fresh fruit bunch (FFB) by 35%, 14% and 7% respectively.
“Additionally, the group’s successful measures to minimise crop losses, reduce the variety of plywood products and increase worker productivity have contributed to this growth.”
Hamed said Ta Ann achieved a stronger balance sheet in FY2022, with total assets of RM2.79 billion. As at Dec 31, 2022, the group’s cash and cash equivalents stood at RM523.6 million against RM454.9 million in FY2021.
On prospects for FY2023, Hamed said the demand for both CPO and timber products remain positive.
“The demand for palm oil is expected to remain high due to its versatility as a cooking oil and as an ingredient in various food products, cosmetics and personal care items. The demand for biofuels is also increasing, which could further boost the demand for palm oil.
“In addition, emerging markets in developing countries are likely to drive the demand for palm oil in the coming years.”
He said the demand for timber products is also expected to remain high going forward amidst the declining timber resources.
“We take pride in being one of the pioneers in forest plantation in Sarawak, establishing a sustainable forest resource base that meets the raw material needs of our group’s downstream processing activities through the utilisation of fast-growing plantation timber species,” he added.
Striking an upbeat note, Hamed said: “We believe that FY2023 will lead to further growth in our financial performance” on the back of improving COVID-19 situation, re-opening of international borders and increased activity in the global economy.”
