KUALA LUMPUR: Sime Darby Plantation Bhd
(SDP) has formulated a strategy charter for 2023-2027 to drive the company’s growth and sustain its market leadership.
Its chairman Tan Sri Megat Najmuddin Megat Khas said the strategy charter is underpinned by three strategic priorities: sustainability, operational excellence and innovation.
"The charter is accompanied by bold and ambitious goals and targets to be achieved in the five-year timeframe.
"These goals and targets during the timeframe include sustainable year-on-year profit after tax and minority interest growth, carbon emission reduction in line with net-zero commitment, operational excellence, 100 per cent traceable commodities and 100 per cent human rights risks managed,” he said in the company’s annual report shared with Bursa Malaysia today.
Megat Najmuddin said in a distinct shift, sustainability and innovation have been elevated as strategic priorities of the group which is on par with operational excellence, clearly indicating the world’s largest plantation company’s intention to build on the industry pole position in these two areas.
"In 2022, we demonstrated how the synergies from these three strategic priorities will power the group through the next chapter of our transformation,” he said.
SDP announced several industry-leading initiatives last year, particularly in advanced mechanisation, automation and digitalisation of its upstream operations.
These include various new sophisticated machines and high-tech gadgets such as drones that provide advanced mechanised solutions for how work had been done in the plantations over the last 100 years.
"Accordingly, we have set ambitious targets such as reducing 50 per cent of our non-harvesting workers by the end of 2024 whilst working towards a 100 per cent local workforce by the end of 2027.
"All of these would contribute to our aim for a man-to-land ratio of 1:17.5 hectares, doubling the efficiency of the current industry average of 1:8 hectares,” Megat Najmuddin said.
He explained that the transformation that the group expects would also attract highly skilled local workers, men and women, machine specialists, technicians and drone operators who are diploma or degree holders.
"In addition, they will command salaries that are commensurate with their qualifications and expertise. This would be a watershed in the industry’s history of over 100 years and it will unlock more potential for us to drive further transformation through technology.
"Our head start in these areas will enable the group to continue to distinguish ourselves and extend our competitive advantage based on our sustainability practices, standards and impacts, as well as our cutting-edge innovations,” said Megat Najmuddin.- Bernama
