CM urges Sabah Softwoods Berhad to continue good performance

KOTA KINABALU: Sabah Softwoods Berhad (SSB) has been given a pat on the back for continuing to make good returns and profits that will assist the State Government through Yayasan Sabah to carry out social plans for the benefit of the people.
Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor urged Sabah Softwoods Berhad’s Board Members and Management team to keep up their good work in order to achieve even higher results through cost control, market diversification and more importantly seek new ventures to further enhance performance.
Owned 70 per cent by Innoprise Corporation Sdn Bhd, the investment arm and holding company of Yayasan Sabah, SSB’s core business included timber, oil palm, milling and woodchip production.
Hajiji hoped SSB will capitalise on the opportunities from the East Malaysia Crude Palm Oil Futures Contract (FEPO) that was launched by Bursa Malaysia Derivatives Bhd (BMD) in early October.
“This augurs well for the future development of Sabah’s palm oil industry and I could foresee that FEPO will be playing vital roles to the future development of the palm oil industry in Sabah,” he said when chairing the Sabah Softwoods Berhad Board meeting at Menara Kinabalu near here on Wednesday.
More businesses and job opportunities along the whole supply chain of palm oil industries, such as transportation, storage facilities, quality surveying and other downstream activities and on the global stage are expected to be created with FEPO in play, he said.
The Chief Minister said FEPO which will be traded by international participants, can serve as a marketing platform to promote Sabah palm-related products and to attract foreign direct investments.
With the State’s production of 4.65 million metric tonnes of CPO alone in 2020, Sabah now ranks as the biggest palm oil producing state with 24 percent market share in terms of national output.
Sabah Softwoods Berhad has targetted to collect RM 90.9 million estimated profit in 2022 based on the average CPO price of RM3,500 per metric tonne but profit could exceed RM100 million again just like in 2021, if the CPO average price surpassed RM3,500.

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