I am some-more interested in substantiating credibility in the proposition, thought or plan. Accordingly we am not fixated over an thought nor feel xenophobic upon carrying to change my in front of if necessary, in the seductiveness of achieving credibility. For example, whilst we am not immediately taken in by the thought of inventory Felda Global, the rational economist in me accepts which it creates good commercial operation as well as economic clarity to restructure Felda's commercial operation to clear value. we think, even whilst the little of us speak about in the views, this element of restructuring, reorganizing, becoming different in sequence to arrive during improved value, is acceptable. Also we am not antithetic to carrying experts run as well as operate the business. Example- KPF is the investment entity in Felda Holdings. The members of KPF get dividends, handouts, charity, benefit etc. they have been equates to to suffer since the commercial entity, Felda Global Ventures Sdn Bhd does the commercial operation for them. KPF's as well as the interests of others- public spirited individuals, minders (paid or unpaid) have been to ensure the managers of the commercial operation do their work well as well as emanate shareholder value.
Except that, we will regularly be circumspect about the tenure 'unlocking value'. Translate which into movement as well as practice, what does the tenure mean? This tenure 'unlocking value' has taken different meanings in the context of commercial operation in Malaysia. It can meant anything. In the unhappy case of MAS for example, unlocking worth has meant the sale of resources as well as the supervision of change piece bypassing handling the operations of the business. The law is, the commercial operation depends some-more upon handling the operations.
My understanding in unlocking worth is however rather some-more basic- it equates to we furnish some-more per acre if we have been in the commercial operation of planting something, we get im! proved p rice, we furnish improved quality, furnish new products, spin some-more productive, keep costs down. It's a bricks as well as mortar view of how an economic craving operates. You operate the genuine economy. Goods as well as services. It's the commercial operation operations.
As an analyst or investor we will demeanour during these variables as well as parameters. At the same time, we have this cynical bias- no commercial operation section can equates to profit upon paper shuffling as well as share manipulations without the support of the commercial operation fundamentals. we am regularly questionable during the handling change piece approach. You wish to arrive during the clean change sheet; we conduct the resources as well as liabilities. You have been fixated during the over consuming thought of carrying some-more worth during resources over liabilities.
In felda's case which equates to to me, creation sure plantations furnish some-more as well as tall peculiarity yields, marketing, handling some-more well as well as so forth. Creating wealth by share manipulations, IPO as well as the things have been primary spurts. What comes later- working upon the fundamentals is what sustains long tenure benefits.
A tighten crony sent me the text. He says he doesn't assimilate because we conflict the FELDA Global ventures (FGV) listing. Don't we empathize with FELDA settlers? The surreptitious owners of the 880,000 hectares of palm oil trees have been starting to suffer the asset as well as we have been objecting? Settlers have been passive investors by their cooperative. The commercial operation as well as commercial aspects of the commercial operation has regularly been handled by Felda Global Ventures SB. That is the classification which operates as well as manages the business. Doesn't it make good commercial operation as well as economic clarity to restructure the commercial operation into the single entity as well as emanate upstream as well as downstream commercial operation e! ntities?
The most important element of this commercial operation in my mind is the land area. Now, these 880,000 hectares contain of what? The land already owned by settlers or land not already owned by settlers or both? Since 1990, Felda doesn't enlist settlers anymore. Land not already owned by settlers or were not since out were all placed under Felda Plantations. These have been not operated by settlers. They have been run directly by Felda by their camp commercial operation units.
Now, which itself was the contentious position. Land was set in reserve by the assorted states to be since to settlers. Felda serves as the management in selecting settlers in sequence to give people land to cultivate. That was the strange goal of Tun Razak when he determined Felda in 1956. Of march we have been not starting to be gummy about his strange intention. He is passed anyway as well as his thought is opened to improvements as well as even revision. The infallibility as well as comprehensive entire as well as un-changeability of an thought do not interest to me as well as we believe which should request to others too. There must be reasons for not giving out land to would be settlers. we do not consider not doing so, renders the whole thought of Felda into total disrepute.
But it will be advantageous to keep the demeanour out where we can go wrong. A less than spirited board representation for e.g. can put the damper upon good commercial operation operations. Look during what happened to Sime Darby for example. Clearly upon an altogether basis, the board hasn't played the good oversight as well as supervisory role. The commercial operation operations must be run by peculiarity managers as well as staff. The classification needs to be nimble in spirit. Maybe the thought of concentration of management as well as energy needs to be relooked. Power as well as resources need to be dispersed in sequence to clear value.
My alternative worry is this. After the IPO, FGV becomes the behemoth. It will be ! bigger t han Sime Darby we think. Where lies the danger? The risk lies in it becoming the vast bureaucratic held-back commercial operation organization. It becomes the supervision unto itself. That may spin FGV into an unwieldy centrally programmed business. This possibility is fraught with dangers. Central formulation is not good for business. Concentration of power, monopoly as well as identical ideas have been antagonistic to giveaway enterprise, competition, acquisitive tendencies as well as this thought of limited interference. The age of big supervision or supervision knows most appropriate must be since the genuine meaning in practice. If FGV is to succeed, ideas understanding of energy dispersion, giveaway enterprise, competition will have to be enhanced not curtailed. We do not need the commissar mentality to run FGV. We will speak about this during alternative times.
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