Focus View
Is FGV’s recovery plan realistic?
FocusM | 07 Sep 2018 00:30
FGV Holdings Bhd has announced an ambitious recovery plan which includes new production and cost reduction targets.

It should be good news for its thousands of minority shareholders, mainly Felda settlers, who have been affected by its poor financial performance. They had bought the shares for RM4.55 in 2012 but the price has slumped to around RM1.55 today.

FGV minorities must be getting used to the many assurances and promises made by management that they will be seeing better times. But the truth is, its cash reserves have fallen drastically, and its debts have risen. There have also been allegations of political interference.

Interestingly, when FGV chairman Datuk Wira Azhar Abdul Hamid announced the turnaround plan, CEO Datuk Zakaria Arshad was in Turkey for a meeting. Wouldn’t it have been better to have the CEO present when announcing an important plan such as this?

So how realistic is FGV’s turnaround plan? For one, the market doesn’t seem to be very convinced. Following the announcement, the shares have hardly moved.

Download and read the latest issue of Focus Malaysia here:
Snippets
AXA& WeChat, bring travel insurance to 1bil users

AXA Partners launch partnership with WeChat to bring Travel insurance to 1 billion users


Perodua charts record 2018, aims to up sales by 4%

Perodua charts record 2018, aims to up sales by 4% to 231,000 units this year