Dutaland Berhad – Annual Report Analysis
INTRODUCTIONIn this group project, we will discuss about the plantation and property development industries in Malaysia. Both plantation and property industries give a great impact to the economy in Malaysia.Firstly, the plantation and commodities sector, comprising oil palm, rubber, timber, cocoa, pepper and tobacco has contributed significantly to the country’s economic development for the past 50 years. Since then, the sector has become one of Malaysia’s major exports earnings. Exports values of these commodities and commodity based products in 2012 was RM 127.5 billion, constituted 18.2 per cent of total export earnings. The vision of the industry is to make Malaysia the Centre of excellence for the commodity sector and as a major producer of higher value-added commodity-based products in the global markets. In the plantation industry, the ministry of plantation and commodities are responsible to make all act and regulation to control the industry.Secondly, for the property development industry in Malaysia, the industry is at a period when it is able to grow sustainably, even during a global slowdown. At the Centre of its ongoing development is the country’s robust property and construction industry, which, as well as attracting global investment, also makes social development a reality. So, it will effect Malaysian’s economic in a large number and helping the country to develop rapidly in infrastructure perspective. Some of the ministry that involve in property development industry are ministry of urban being, housing and local government. So, they will help in developing the property development industry in Malaysia.
Therefore, as in the group project working paper, we have choose DutaLand Berhad as one of the company in the plantation industry generally and in the palm oil industry specifically and Ivory Properties Group Berhad as one of the company in property development industry in Malaysia.Business and Economic Literature Review on the IndustriesDUTALAND BERHAD – Plantation IndustryThe Malaysian plantation industry is an integral part of the agricultural sector. Agriculture remains an important sector of Malaysias economy, contributing 12 percent to the national GDP and providing employment for 16 percent of the population. The 3 main crops produced are palm oil, rubber and cocoa. Malaysia is also an exporter of coconuts, timber, pepper, and tobacco.Oil palm occupies the largest area of crops grown in Malaysia and palm oil is the biggest foreign exchange earner among all agricultural commodities and products. The Malaysian oil palm industry is one of the most highly organized sectors of any national agriculture system of the world. Malaysia accounts for 39% of the world’s palm oil production and 44% of world’s exports. In 1999, Malaysia produced 10.55 million metric tons of palm oil, remaining one of the worlds largest producers. Almost 85 percent or 8.8 million metric tons of this was exported to international market. The success in oil palm expansion was consolidated with promotion of downstream industries, including the use of palm oil for oleochemical production.