KUALA LUMPUR (April 29): FGV Holdings Bhd chairman Datuk Wira Azhar Abdul Hamid said it is his fervent hope that history will regard 2018 as a watershed year for the plantation group because during the year, its directors took bold and concrete steps to set the company back on the right track.

Azhar said in FGV's latest annual report that in addition to the company's transformation plan that had been put in place during 2018, the group reviewed its strategic objectives and formulated its business plan 2019-2021 (BP21) to guide FGV in implementing value-adding activities to maximise shareholder returns.

"All of us on the board agree that we were challenged, as we never have been before. There were several occasions when we debated long and hard over the best way forward, when there were difficult decisions to be made.

"On every occasion, we were guided by the principles of good governance, fairness and responsibility, fully aware that we serve our shareholders, all of you, equally and without distinction. I am pleased to report that today, we are starting to see the potential signs of recovery, although there is still some way to go," Azhar said.

According to Azhar, BP21, anchored on the theme 'stop the decline and drive sustainable growth', is driven by several key principles.

He said these principles involve better resource utilisation to generate higher returns on assets, portfolio enhancements to balance structural inefficiencies, value maximisation through an integrated business value chain, commercially driven and accountable business decision-making, and optimising human capital potential in driving growth.

"In line with these principles, we have identified four strategic thrusts to be implemented across our core businesses and support functions. These comprise operational improvements to maximise productivity, enhance quality and lower costs; products and market penetration to optimise value along our plantations, sugar and logistics value chains; new growth areas to identify strategic growth opportunities for long-term performance enhancement; and financial as well as capacity building to improve our financial position and human capital capabilities to drive our business forward.

"With BP21, we aim to identify and solve shortcomings hindering FGV's growth and draw lessons from which we can move forward. Ultimately, we are steering FGV back on course to ensure its sustainability and realise value for our shareholders," he said.