You don't need to be an accountant or an economist to know there is something very wrong in Felda if what was published here are factual information that can be relied on.A businessman with some good experience can tell by looking at the figures that there is something very wrong not only with Felda but the juggernaut Sime Darby is equally suffering from blossom blight.
In spite of its claim of social obligations it surely can't be that bad. Performing far below the industry's standard should have raised alarm bells.Obviously, it did not.
Sime Darby's performance is even more embarrassing.For a company that will be 100 years old come this October and claimed to be the biggest plantation company in the world, its profit is, let me use a Malay word, memalukan.
Obviously, those in government responsible for keeping tap of government investments are happy with the paltry sum Felda and Sime Darby make compared to those made by the public-listed companies run by China men, which is the industry standard.
How the hell can Felda and Sime Darby having three times bigger acreage giving almost same yield as the two private companies with much less acreage produced such miserable profits.
Felda claimed social obligations can Sime claim the same? Felda's excuse for the low return is also not acceptable.There must be other factors that have eroded the profit so badly.An investigative audit of the accounts is imperative if the government sincerely wants to know what, why and where it has gone wrong.
No matter how you juggle the figures and tried to make sense of the low earnings it just wouldn't make sense.Felda and Sime's profits should have been far far greater than the two public-listed companies unless 50 percent of their plantations are non-yielding.
The question now is why Mohd Bakke Salleh who was Felda's CEO and with the kind of dismal performance in Felda was transferred to helm Sime Darby?
IOI is a public-listed company headed by the Executive Chairman Dato Lee Shin Cheng and Wilmar International is another public limited company headed by its Chairman/CEO Kuok Khoon Hong.These Chinaman's (not being racist here) managed companies have less acreage but many times more profit.
That tells you volume about bumiputra management.
The Prime Minister should get down to business and demand an explanation from the CEOs of both companies why the "keuntungan yang memalukan."
These are events before he became prime minister, he could demand an explanation.
More in depth analysis to come.
The analysis and conclusion are based on the following assumptions:
1.All above figures given are correct
2.Profits for all 4 companies were purely from oil palm business.
3.Profits based on same year and full year basis.