TSH Resources Bhd’s chairman Datuk Kelvin Tan shares his views and outlook on the year ahead with The Edge Financial Daily in this interview.
TEFD: What are your expectations for 2012, for your company and the plantation industry?
Tan: We are excited and bullish on the group’s growth in crude palm oil (CPO) output over the next few years. There are about 15,000ha or 54% of our planted areas coming into maturity over the next few years, not only in terms of increased maturity area, but also improving fresh fruit bunch (FFB) and CPO yields as the fruits reach the prime age of seven to 12 years.
For the plantation industry, we believe that the fundamentals that drive demand for edible oils will continue to grow at a steady pace, coupled with higher demand for biofuel.
The fundamental drivers for the palm oil plantation industry remain strong based on population growth, income growth and consumption per capita growth, especially from the fast growing developing countries. Moreover, palm oil remains one of the most competitive edible oils.
What impact, if any, do you expect from the euro crisis?
Based on the last two major financial crises in 2000 and 2008, demand for edible oils continues to grow, although at a slower rate. The fundamental drivers, which come from demand growth in developing countries and biofuel, remain strong and intact.
What do you expect CPO prices to range in 2012?
We do not forecast CPO prices. However, we believe the strong fundamentals from the demand growth in CPO will be able to sustain the current price.
What is the company’s plans and focus for 2012?
The group plans to undertake new planting on its existing land and expand the plantation landbank. We will continue to improve on our productivity and efficiency to maintain our competitiveness. We will also continue to develop on human capital through our training school.
What is your wish list for 2012?
Our wish is to remain one of the most competitive plantation groups and to grow it into a sizeable regional player in the next couple of years.
The 2012 CEO Outlook series started on Dec 19 and will run every day into January. The Edge Financial Daily has so far interviewed Geoffrey Briscoe of BMW Malaysia, Tan Sri Teh Hong Piow of Public Bank Bhd, Jeffrey Chew of OCBC Bank (M) Bhd, Osman Morad of Standard Chartered Bank Malaysia Bhd, Yvonne Chia of Hong Leong Bank Bhd, Tan Sri Lee Oi Hian of Kuala Lumpur-Kepong Bhd, among many others. If you’ve missed them, please read our back issues on iPad for free
This article appeared in The Edge Financial Daily, December 28, 2011.
TEFD: What are your expectations for 2012, for your company and the plantation industry?
Tan: We are excited and bullish on the group’s growth in crude palm oil (CPO) output over the next few years. There are about 15,000ha or 54% of our planted areas coming into maturity over the next few years, not only in terms of increased maturity area, but also improving fresh fruit bunch (FFB) and CPO yields as the fruits reach the prime age of seven to 12 years.
For the plantation industry, we believe that the fundamentals that drive demand for edible oils will continue to grow at a steady pace, coupled with higher demand for biofuel.
Tan’s wish list for 2012 is for TSH Resources to remain one of the most competitive plantation groups.
The fundamental drivers for the palm oil plantation industry remain strong based on population growth, income growth and consumption per capita growth, especially from the fast growing developing countries. Moreover, palm oil remains one of the most competitive edible oils.
What impact, if any, do you expect from the euro crisis?
Based on the last two major financial crises in 2000 and 2008, demand for edible oils continues to grow, although at a slower rate. The fundamental drivers, which come from demand growth in developing countries and biofuel, remain strong and intact.
What do you expect CPO prices to range in 2012?
We do not forecast CPO prices. However, we believe the strong fundamentals from the demand growth in CPO will be able to sustain the current price.
What is the company’s plans and focus for 2012?
The group plans to undertake new planting on its existing land and expand the plantation landbank. We will continue to improve on our productivity and efficiency to maintain our competitiveness. We will also continue to develop on human capital through our training school.
What is your wish list for 2012?
Our wish is to remain one of the most competitive plantation groups and to grow it into a sizeable regional player in the next couple of years.
The 2012 CEO Outlook series started on Dec 19 and will run every day into January. The Edge Financial Daily has so far interviewed Geoffrey Briscoe of BMW Malaysia, Tan Sri Teh Hong Piow of Public Bank Bhd, Jeffrey Chew of OCBC Bank (M) Bhd, Osman Morad of Standard Chartered Bank Malaysia Bhd, Yvonne Chia of Hong Leong Bank Bhd, Tan Sri Lee Oi Hian of Kuala Lumpur-Kepong Bhd, among many others. If you’ve missed them, please read our back issues on iPad for free
This article appeared in The Edge Financial Daily, December 28, 2011.
