KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV), which aims to be among the top 10 agriculture commodity players in the world by 2020, is planning a RM1 billion investment in Cambodia’s plantation sector.
FGV was eyeing sugar, palm oil and rubber plantation businesses in Cambodia and might venture into an integrated livestock project in the future, sources said.
“FGV has been looking to spread its investment and is targeting countries that are economically viable and growing and finds Cambodia a good fit for expansion.
“The Cambodian government has been talking to several international planters, including FGV, to develop agriculture land and plant oil palm, rubber trees, sugar cane, and cashew nuts. There is a huge potential for
growth in Cambodia,” sources said.
FGV chairman Tan Sri Mohamed Isa Abdul Samad had said in 2011 that the Felda management was negotiating with the Cambodian authorities, following an offer to open up 160,000ha in the country.
FGV group president and chief executive officer Datuk Mohd Emir Mavani Abdullah said the company had invested in a rubber processing plant in Cambodia and was looking to expand further.
The company incorporated FGV CVC Cambodia Pty Ltd, in which it owns a 75 per cent stake through its 100 per cent-owned unit FGV Cambodia (L) Pte Ltd.
FGV CVC, located in the Tbong Khmum province, is involved in the processing and marketing of processed rubber.
“For the upstream sector, FGV is still in the exploration and screening stage. Investment proposals have not been finalised and FGV is in the midst of obtaining the approvals,” Mohd
Emir said.
As for the rubber cluster, he said the initial plans were on both upstream and midstream sectors, although FGV might also enter the downstream sector.
“Our strategy in Cambodia is to focus on brownfield acquisition at the ratio of 70 to 30 and this will expand our midstream capacity,” he said.
He said Cambodia would be an ideal destination for FGV’s rubber plantation and mills expansion plan via smallholders’ schemes.
FGV has operations in 10 countries and is involved in three main business segments, namely plantation, downstream and sugar.