@ AGROBiz | MAY-JUNE . 2024

This strategic move signals the company ’ s intent to secure shareholders ’ approval for the rebranding initiative during an upcoming extraordinary general meeting ( EGM ).

Chairman of SD Plantation , Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani , stated : “ This is a pivotal moment in our 200-year legacy . We ’ ve excelled in our industry and grown our downstream business , contributing significantly to revenue .”

Over several months , the decision to rebrand followed extensive consultations with legal , intellectual property , and brand identity experts . The company is also committed to obtaining all requisite legal and regulatory endorsements for rebranding .

“ We believe it is the prerogative of any large company with ambitions for sustainable growth to own and control its brand and identity . With this change to SD Guthrie , we will be able to assert full control over our identity and explore opportunities that will best serve the interests of our shareholders ,” said SD Plantation Group Managing Director Datuk Mohamad Helmy Othman Basha .

THE MINISTRY of Agriculture and Food Security ( MAFS ) and the Asean Business Advisory Council ( Asean-BAC ) recently discussed expanding market opportunities within the agriculture and food security sector across the Southeast Asian region through collaborative initiatives .

During a meeting between the Minister of Agriculture and Food Security , Datuk Seri Mohamad Sabu and the Chairman of Asean-BAC Malaysia , Tan Sri Nazir Razak , the discussions centred on leveraging the council platform to enhance market access .

The “ Sime Darby ” brand is currently under the ownership and administration of Sime Darby Berhad , the former parent entity of SD Plantation .

Following the demerger and subsequent listing of SD Plantation over six years ago , the company has been operating under a licensing agreement , remitting an annual fee for leveraging the “ Sime Darby ” brand .

This arrangement has limited SD Plantation ’ s autonomy in shaping its brand and business strategic directions .

The proposal to adopt “ SD Guthrie ” as the new corporate identity aims to position the company as an integral player in the industry , with diversified interests and growth potential transcending traditional upstream plantations .

Key topics included technical cooperation in agricultural research and development , technology transfer for food security , and strategies to address food decline issues and waste .

MAFS emphasised the importance of Asean-BAC Malaysia supporting Malaysian agro-food entrepreneurs in exploring Asean markets and adopting best practices from neighbouring countries like Indonesia , Thailand , the Philippines , and Vietnam to bolster competitiveness .

Also present during the meeting was Deputy Minister of Agriculture

Furthermore , the “ SD Guthrie ” brand encapsulates the company ’ s historical narrative , paying homage to its recent past within the Sime Darby group and its inception more than two centuries ago under Alexander Guthrie . The original Guthrie narrative exemplified ambition , entrepreneurial energy , and persistence , which are still reflected in the company ’ s ethos today .

“ To us , however , our commitments to sustainability , innovation and quality are as important as our scale , reach and capacity . This is why we continue to explore new technologies and invest in continuous improvement . We understand the world ’ s changing needs , and we are looking forward to an exciting future ,” Helmy concluded .

SD Plantation ’ s origins date back to 1821 , when it was a trading entity in Singapore , Guthrie & Co . Through successive corporate evolutions , it burgeoned into one of the globe ’ s premier plantation conglomerates .

and Food Security Datuk Arthur Joseph Kurup , who highlighted the need to increase Malaysia ’ s exports to Asean countries and improve trade balance in the agro-food sector .

Additionally , the MAFS extended an invitation to the Asean-BAC Malaysia delegation to participate in the upcoming 2024 Malaysia Agriculture , Horticulture & Agrotourism ( Maha 2024 ) event happening from Sep 11-22 , highlighting the strategic value of Maha as a platform for business networking within Malaysia and across the Southeast Asian region .

THE KEDAH state government faces an annual loss of approximately RM100 million due to undeveloped land under the Muda Agricultural Development Authority ( MADA ), which could otherwise be utilised for housing , commercial and industrial purposes , according to Kedah Menteri Besar , Datuk Seri Muhammad Sanusi Md Nor .

Sanusi mentioned that around 10,000 hectares of MADA land have been designated for housing development in the district ’ s local plan , with an additional 400 hectares allocated for industrial use and several hectares for commercial purposes .

He said : “ So if we follow the district ’ s local plans , we will get more revenue , land taxes , property assessment , water charges . Now water flows into fields for free , but if water goes to houses or factories , we can charge ; that ’ s the revenue we lose to retain rice fields .”

Sanusi estimated an annual loss of RM100 million based on the untapped potential outlined in the local plans . He also expressed concerns about future losses , anticipating that this figure could rise over the next five to ten years .

“ The area has been developed at a very high cost to build bunds and other things for rice irrigation . This is to be considered by the Federal ( Government ) I believe . I do hope it will be approved .”

His remarks followed Prime Minister Datuk Seri Anwar Ibrahim ’ s recent announcement of the Federal Government ’ s tentative agreement to reclassify MADA land for industrial and commercial development .

Sanusi also acknowledged the ongoing agricultural activities on the land but stressed the urgent need for its development for non-agricultural purposes .

He highlighted the significant investment in infrastructure , such as bunds for rice irrigation , and appealed for financial assistance from the Federal Government to offset the revenue shortfall .

Sanusi clarified that while the Prime Minister ’ s announcement indicated a shift in land use , the final decision would be subject to scrutiny by the Ministry of Agriculture and Food Security ( MAFS ), with hopes that the financial aid request would be granted .