Genting Plantations Berhad ("Genting
formerly known as Asiatic Development Berhad,
is one of the fastest growing plantation companies listed on the Main Board of
Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange). Incorporated in Malaysia as a private limited company on 29
September 1977, under the name of Asiatic Development Sdn Bhd, it became a
wholly owned subsidiary of
Genting Berhad ("Genting") on 22 February 1980 to spearhead Genting's
Listed on Bursa Malaysia on 30 August 1982, Genting
Plantations currently ranks
amongst the top 10 listed companies in terms of market capitalisation in the
plantation sector. As at 30 April 2009, Genting Plantations is a 54.7% owned subsidiary of Genting Berhad.
In April 1980, Genting Plantations commenced business through the
successful acquisition of the Rubber Trust Group comprising 3 Hong Kong
domiciled rubber companies which owned some 13,700 hectares of plantation land
in Peninsular Malaysia. In June 1981, the Ko Rubber Companies, which owned about
10,000 hectares of plantation land in Peninsular Malaysia, were acquired by
Genting Group and through a restructuring exercise in 1983, some 9,268 hectares
of these plantation land and businesses were transferred to Genting Plantations. In the same
year, Genting Plantations acquired a further 676 hectares of oil palm plantation and a 30 tonne
per hour oil mill. These acquisitions would have now proven to be most astute
decisions judging by the development potential of some of the land and the
capital appreciation that has since taken place, particularly the 3,200 hectare
- Genting Kulai Besar Estate which is now being developed as the mega Genting Indahpura project
in Kulai, Johor.
Recognising the scarcity of land in Peninsular
Malaysia, Genting Group started making inroads into Sabah. In 1985, Genting
Group acquired Asiatic SDC Sdn Bhd, whose plantation business comprised
some 4,000 hectares of oil palm plantation and a 20 tonnes per hour oil
mill. In a subsequent rationalisation of Genting Group's plantation activities,
ownership of ASDC was transferred to Genting Plantations in 1991.
A quick succession of land acquisitions in Sabah ensued for
Genting Plantations, starting with the takeover of Tanjung Bahagia Sdn Bhd in 1988 which
owns 8,094 hectares of jungle land, followed by a joint venture arrangement with
Landworthy Sdn Bhd (now known as Asiatic Tanjung Bahagia Sdn Bhd) in 1989 which added another 4,039 hectares. Between 1991 and
1996, another 5,730 hectares were acquired. With all these jungle lands fully
cultivated, Genting Plantations, with its long term vision to further its plantation
interest, continues to expand its land bank. Notable acquisitions include the
8,830-hectare agricultural land near the Sungai Tongod and the 5,611-hectare oil
palm estate near Bukit Garam in 2001 and 2002 respectively. And in May 2004,
Genting Plantations has completed yet another acquisition of some 6,753 hectares of oil palm
estates together with a 60 tonnes per hour oil mill in Kinabatangan, Sabah.
In June 2005, Genting Plantations embarked on its maiden foray into
the plantation business overseas. This expansion of plantation activities in the
Republic of Indonesia is on a joint venture basis with a respectable palm oil
producer in the country, the Sepanjang Group. The Genting Plantations-Sepanjang 70:30 joint
venture will develop some 76,000 hectares of agricultural land into oil palm
plantation. Genting Plantations entered into another joint venture in 2008 to
develop 45,000 hectares in Ketapang. Following these recent acquisitions, Genting Plantations's current land bank is slated to increase to over 186,000 hectares
in Indonesia and Malaysia; an
impressive 14-fold increase since 1980. The Group continues to be actively
working towards adding more.
At present, Genting Plantations owns 6 oil mills, one in Peninsular
Malaysia, which attained
the ISO 9002(1994) Quality Management Systems status in 2001 (which was
subsequently updated to the ISO 9001(2000) in 2002) and the others in Sabah.
Total milling capacity to date is 265 tonnes per hour. In 1994, Genting Plantations entered into a joint venture with a Sarawak state agency to
establish a 30/60 tonnes per hour palm oil mill in
Serian, Sarawak. This mill scored a hattrick when
it was awarded the Anugerah Industri Sawit Malaysia, in recognition of its high
oil extraction rate, by PORLA since its commissioning in August 1997.
Whilst plantation business remains the core activity,
has since ventured into property development with the objectives to unlock the
potential of its strategically located land bank and to reduce its dependence on
single source income.
The first project by Genting Plantations's property
arm, Genting Property Sdn Bhd ("Genting Property") is the 55-hectare Genting Cheng Perdana in
Central Melaka. Officially launched in October 1993, the project has turned out
to be quite a success with its first phase of single- and double-storey houses
completed and handed over to purchasers about 9 months ahead of schedule. Since
then, 3 other phases have been completed and handed over in good time.
What followed next was the launching of the 284-hectare
Genting Permaipura project in late 1994. Located about 10 km from the fast-growing town
of Sungai Petani, Kedah, a town poised to become the commercial/industrial hub
of the northern region in Malaysia, Genting Permaipura comprises commercial and
entertainment centres, bungalow lots, residential houses and shop-offices. Also
included in this project is an 18-hole golf course with a 2-tier driving range
which sprawls over 160 acres of prime land against the majestic backdrop of Gunung
Jerai and a clubhouse, The Genting Permaipura Golf & Country Club.
Further, in its push to the forefront of property
development, Genting Property had embarked on another project - the massive
"Beautiful City" project at Kulai, Johor. Spanning over 30 years, this project
located just 30 km north from the bustling and fast growing city of Johor Bahru
involves the development of about 3,200 hectares of plantation land in Kulai,
Johor, into a self-contained township. Genting Indahpura is conceptualised as a
fully-integrated development complementing the State's plan to upgrade the
existing Kulai town into a sub-regional centre complete with all modern
amenities and convenience, and generously landscaped town parks and green lungs
for healthy and recreational pursuits. The project's attraction lies in its
excellent location which enjoys easy access from virtually every transportation
route - road linkages through the North-South Expressway and the Second Link
from Singapore; air linkages through the Sultan Ismail International airport in
Senai 10 minutes away; and rail links through the Federal Railway lines.
Genting Plantations also has other large tracts of land with development
potential. These will continuously be monitored as to the timing and the type of
development most suited in relation to their locations. With low land holding
cost and huge reserves of own land bank, Genting Plantations can aspire to play a bigger
role in the property sector in Malaysia in the near future.
Moving forward, the Group, through its wholly owned
subsidiary, Asiatic Centre for Genome Technology Sdn Bhd ("ACGT"), has ventured
into the biotechnology industry in 2006. ACGT has set up an equally owned joint
venture with Synthetic Genomics Inc ("Synthetic Genomics"), a privately held
company dedicated to commercializing synthetic genomic processes and naturally
occurring processes for alternative energy resources.
The joint venture is tasked to carry out research and
development activities on the use of genomics-based techniques and tools to
increase the yield and profit stream from crop plants. It will initially focus
on whole genome sequencing of oil palm. Synthetic Genomics, which was founded by
genome pioneer J Craig Venter, Ph.D., will use its expertise in DNA sequencing
to enable SGSI-Asiatic Limited to develop a comprehensive genomic study of oil
palm whilst ACGT will be the exclusive agent and sole licensee, on a worldwide
basis, for commercialising the technologies developed. In May 2008, the joint
venture announced that it had successfully completed the first draft assembly of
the oil palm genome. For more information, please visit
Genting Plantations is actively involved in environmental
conservation and committed to sustainable development of oil palm cultivation.
Since 1999, Genting Plantations has collaborated with World Wide Fund for Nature ("WWF") in
support of its "Partners for Wetlands") programme to conserve the Kinabatangan
floorplains aimed at rehabilitating and restoring riverine and wetland habitats
as wildlife sanctuary and preservation of biodiversity. The Kinabatangan
floorplains will serve as a corridor for wildlife movement of Borneo flagship
species, such as pygmy elephant, orang utan and proboscis monkey. The Group,
noted as the first plantation company to participate in the programme, has
extended its partnership with WWF for another 15 years from 2006.
On the international front, the Group is one of the first 14 members of the
Roundtable of Sustainable Palm Oil ("RSPO"), a multi-stakeholder association, whose primary
objective is to promote the production and use of sustainable palm oil through
co-operation within the supply chain and open dialogue with its stakeholders.
Genting Plantations will continue to pursue and adopt good plantation management practices
to uphold the well being of the environment it operates in.