SARAWAK PLANTATION BERHAD
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Annual Report 2014
Message to Our Shareholders
Year of Productivity
(continued)
Finally, purchasing, tendering and outsourcing
strategies were reviewed wherever possible to
seek both performance and cost improvements. A
notable success was the streamlining of vehicle
maintenance and repair services, where considerable
savings and performance gains were achieved.
We are confident that the enhancements and
improvements that we put in place will show results
in increased yield in years to come.
Expansion of Planted Hectarage
Around 1,800 ha were planted during the year, and
are expected to start yielding in 2017.
Challenges and Opportunities
Manpower Challenges - Estate Workers
We have made great strides in improving the supply
of highly skilled plantation staff from the market
and through the setting up of SP Training Centre.
However, like other plantation companies, we face
a continuing shortage of semi-skilled and unskilled
estate workers.
Therefore we continue to make strenuous efforts
to position ourselves as an employer of choice for both
local and foreign estate workers, through enhancing
the living environment for them and their families,
with high quality accommodation and good
healthcare, education, recreation and communication
facilities. The major long-term solution to this
labour shortage is increased estate mechanisation,
to which we are fully committed.
Manpower Challenges - Staff
Our permanent human capital of around 570 staff
is equally important for the Group’s success. Our
vision is to create an “environment of continuous
learning”, as we develop a workforce of well-rounded
individuals with strong personal leadership skills.
The focus for 2014 was on building technical
competencies in our operations.
Expansion Opportunities
We continue to monitor our industry for potential
acquisitions and mergers to increase our hectarage,
particularly ongoing brownfield operations, which can
provide immediate financial returns. However our
approach remains highly selective; we are targeting
strategically located acquisitions which are either
close to our milling facilities or otherwise offer
economies of scale.
