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LABUAN FACULTY OF INTERNATIONAL

FINANCE UNIVERSITI MALAYSIA SABAH LABUAN


INTERNATIONAL CAMPUS

INDUSTRIAL TRAINING FINAL REPORT FELDA


GLOBAL VENTURE SDN. BHD.

NURUL AINUL FATIHAH BINTI MD YAZLI

2017
FELDA GLOBAL VENTURE, FINANCE
DEPARTMENT LEVEL 23, MENARA FELDA
PLATINUM PARK, NO.11 PERSIARAN KLCC.

THIS REPORT IS SUBMITTED IN PARTIAL


FULLFILLMENT OF THE REQUIREMENTS FOR THE
BACHELOR’S DEGREE OF INTERNATIONAL
MARKETING (HONORS)

NURUL AINUL FATIHAH BINTI MD YAZLI


UNIVERSITI MALAYSIA SABAH 2017
DECLARATION

I hereby declare that this report is my own work, except for extracts and summaries for
which the original references are stated herein.

(Signature & Date)

______________________

NURUL AINUL FATIHAH BINTI MD


YAZLI

CONFIRMATION BY TRAINING SUPERVISOR

I confirm that the above candidate wrote this industrial training report in accordance with the
regulations established by the Industrial Relations Centre of University Malaysia Sabah. I
also confirm that all information provided herein were released by our company/
organization.

(Date) (Signature & STAMP)

________________ __________________________

NURUL AINUL FATIHAH BINTI


MD YAZLI
ACKNOWLEDGE
SYNOPSIS
TABLE OF CONTENT
LIST OF FIGURES
LIST OF TABLES
LIST OF ABBREVIATIONS

i. Felda Global Ventures Holdings Berhad (FGV)


ii. Felda Global Venture Plantations Malaysia (FGVPM)
iii. Crude Palm Oil (CPO)
iv. Palm Kernel (PK)
v. Fresh Fruit Bunch (FFB)
vi. Land Lease Agreement (LLA)
vii. Account Payable (AP)
viii. Account Receivable (AR)
ix. General Ledger (GL)
x. SAP
CHAPTER 1

COMPANY BACKGROUND, OBJECTIVE AND PHILOSOPHY, ORGANIZATION


CHART AND STRUCTURE.

1.1. Company Background


Felda Global Ventures Holdings Berhad (FGV or Group) is a Group
strategy to streamline the management process and increase accountability,
there have implemented a new organizational structure that streamlines the
existing six business clusters into three main sectors; the Plantation Sector,
the Logistics & Others (LO) Sector land the Sugar Sector, Under this new
structure, all palm-related business clusters – Upstream, Downstream,
Research & Development and Agri – Services (RD&A), and FGV Trading Sdn
Bhd (FGVT) – are grouped under the Plantation Sector. The Logistics and
Rubber Clusters are grouped under the LO Sector while the Sugar Cluster
operates as a standalone Sector. The new structure is aimed at improving
operational and management focus, and enhancing clarity and reporting
accountability. It will also drive greater synergies by grouping like business
under a fully integrated value chain. The new organizational structure is
effective as at 2 February 2017.

FGV’s RD&A Cluster serve as their oil palm Research and


Development (R&D) outfit, it has pioneered cultivation of high-yielding and
disease tolerant oil palm planting and support materials. There are winning
Yangambi oil palm planting material, commanding a 43% market share in
Malaysia, is one of RD&A’s innovative products. The Cluster’s key objective
is to generate cutting-edge agri-business technologies to enhance operational
performance and commercial utilisation across all facets of FGV.

The Group has also included FGVT into the Plantation Sector to fortify
the Sector’s aspiration to accelerate internally produced edible oils and fats
transactions to existing and new markets.

The LO Sectors ensures integrated supply chain support across all


FGV’s core business. The Sector’s task is to connect and control the flow of
assets across FGV’s business, driving Group-wide efficiencies. Going further
into completing the supply and value chain landscape, we are embarking on
end-to-end logistic as a high value Multimodal Transport Operator (MTO) and
exploring an asset-light approach to maximise their bottom line wherever
possible. Edible oil storage and warehousing facilities complement the
Group’s Logistic activities locally and globally. These activities will provide the
impulse to enhance the performance and improve of FGV’s core activities.

The Sugar Sector comprises its listed subsidiary MSM Malaysia


Holdings Berhad (MSM Holdings) making FGV the leading refined sugar
producer in Malaysia. FGV commands 60% of the local refined sugar market
with an annual production capacity of 1.25 million MT.

MSM Holdings continues to expand and optimise the businesses of its


two operating subsidiaries – MSM Prai Berhad and MSM Perlis Sdn Bhd, with
an upcoming refinery in Tanjung Langsat under MSM Sugar Refinery (Johor)
Sdn Bhd that is expected to commence operations in 2018.

A sustainability and Environment Department (SED) has been


established under our Corporate Centre to pursue the Group’s commitment
to create a sustainable business that is financially successful while
contributing towards the total well-being of people and the planet. This
includes the strategies that will address Economic, Environmental, and Social
(EES) impacts and pursue opportunities to achieve business excellence.

The Group’s progression towards becoming one of the leading globally


integrated agri-businesses by year 2020 will open up global possibilities and
potential. With world class technology and sustainable planet.

FGV is the world’s largest palm oil producer and oil palm plantation operator,
based on planted hectares. Incorporated in Malaysia as a private limited
company 2007, the company was listed on the main market of Bursa Malaysia
Securities Berhad as Felda Global Ventures Holdings Berhad. As at 31
December 2013 our market capitalisation is RM 16.6 billion.
FGV is the world’s largest Crude Palm Oil (CPO) producer and the second
largest Malaysian palm oil refiner.

With more than 19,000 people in the group from our subsidiaries as well as
joint-venture companies and associates, we aspire to be one of the top agri-
business conglomerate in the world by 2020.

Felda Global Ventures Holdings Berhad (FGV) is Malaysia’s leading global


agribusiness and is the world’s largest producer of Crude Palm Oil (CPO).
The company location is at the Menara Felda Platinum Park, No.11 Persiaran
KLCC, 58800 Kuala Lumpur.

There are have operations in more than 10 countries across Asia, North
America, and Europe.

Vision : To be the leading globally diversified integrated agri-business


Mission : To be a global leader by;
i. Creating value through our human capital
ii. Championing our locally invested culture
iii. Building an integrated value chain advantage
iv. Cultivating diversification in commodities and
geography.

1.2. Objective and Philosophy

1.3. Organization Chart and Structure

Berikut merupakan carta organisasi untuk Jabatan Kewangan Felda Global


Ventures Palm Malaysia yang terbahagi kepada enam unit bahagian iaitu;
Head of Finance
(Plantations)
Noor Azimah Bt. Abdul
Aziz (GM)

Estate A/C, GL, Asset RCU MIS


LIA, Treasury, AP Management
CPO, PK & FFB (Sales, Purchase Statutory Reporting & Non CPO Stock Mohd Haizum Abdul Rahim
&Inventories) & AR
Abdul Rahim Ahmad Ahmad (M) Ahmad
Nora Lah (M) Muhammad Izzat
Zulkefli Shamsuri (SM) Hanapi (M) (SM)

Receivables & Treasury


CPO & PK
- Asri Lee Abdullah (SE)
- Mohamad Asraf
- Mohd Rizza Azrim (E)
- Azwazee Mohd Daim (E)
- Razzis Jaapar (NE)
- Norhidayah Binti Arshad (AE)

Payables/AP/Bank
- Hassan Adli Ya'akub (SE)
FFB Purchasing
- Aifarisa Abdullah (SE)
- Norzila Hussin (SE)
- Wahidah Abdul Razak (NE)
- Vacant (NE)
- Chan Yii Ling (NE)

Company’s/ organisation’s name, company’s location; History, Objective and Philosophy, Organisation chart and structure, Field of industry, staffs/ human resource and other related
topics. Lastly, the student need to summarize the chapter with the organization of their report from Chapter 1 to Chapter 5. Students are advised to have citation for each and every
single information taken/ used in this chapter.
CHAPTER 2

OPERATIONS, PRODUCTS, AND SERVICES

2.1. INTRODUCTION
In order to compete in global stage market, the company has create a strategy to
generate synergies through a fully integrated palm value chain of upstream,
downstream activities down to its finished product. The cluster are now group
under the Plantation sector.

2.1.1 Palm Upstream


The upstream cluster is the single largest contributor to the company revenue
and certainly a core business for FGV. As to date, it is the 3 rd largest oil palm
estate operator. Contributing as the largest revenue earner and also forms the
core of the company with the total land bank more than 450,000 hectares, Palm
Upstream Cluster is responsible for FGV’s status as the world largest CPO
producer which produces more than three million tonnes of CPO annually.
Processing over 15 million tonnes of fresh fruit bunches (FFB) annually which
includes 5 million tonnes from self-own plantations and the balance are from
FELDA settlers and independent suppliers.

Owning 69 palm oil mills, it could produce 3 million tonnes of crude palm oil
(CPO) more than any other producer worldwide making it the world’s largest
producer of CPO.

In Malaysia, the largest plantations are located in Pahang and Sabah. FGV also
owns Pontian United Plantations Berhad (PUP) which operates 15.161 hectares
oil palm plantations in Sabah.

Palm Upstream Subsidiaries are:


 FGV Plantations (Malaysia) Sdn. Bhd
 Felda Palm Industries Sdn. Bhd.
 Pontian United Plantations Berhad
 Asian Plantations Limited
 FGV Kalimantan Sdn. Bhd.
2.1.2 Palm Downstream
This cluster is an important component of the Groups’ operations as it creates a
natural hedge against volatile commodity prices. Palm Downstream Cluster
covers the refining, processing and marketing activities related to the conversion
of crude palm oil (CPO) and crude palm kernel (CPKO) into value added
products.

2.2 Felda Palm Industries (FPI)

It is stands as part of FGVPM palm upstream subsidiaries, FPI (Felda Palm Industries) is
chosen as it is a part of FGVPM agri-business culture. Subsidiaries, it is a major
contributor to Malaysia CPO.

Felda Palm Industries Sdn Bhd (FPISB) was incorporated in Malaysia on the 14th
September 1995 under the companies’ act 1965, as a private limited company. Formally
known as Felda Mills Corporation established in 1st July 1975 under section 42 of the
Land Development Ordinance 1956 as an agency of Federal Land Development Authority
(FELDA)

FPISB has a paid up capital of RM202 million and the shareholders comprise of Felda
Holding Berhad (72%) and Koperasi Permodalan Felda (28%). The company core
activities are purchasing and processing of fresh fruit bunch (FFB) from the Felda Estates,
Settlers and External Suppliers to produce Crude Palm Oil (CPO) and Palm Kernel (PK).

FPISB is the largest crude palm oil producer with a production of 2.51million tonnes per
year which is 17% of the total Malaysia’s production. Currently FPISB operates with 69
palm oil mills located throughout the country. The total milling capacity currently stands at
3364 tonnes of FFB per hour or 17 million tonnes per year. FPISB has a total workforce
of 5,800 comprising of professionals and semi-skilled workers.

2.2. ACTIVITIES/ OPERATIONS/ WORKFLOW

Spread to various mills throughout the nation. FPI operates by buying fresh fruit bunch
from close by FGVPM estates to be processed into crude palm oil. Their research and
development in many disciplines which involves biochemistry, chemical and mechanical
engineering which is also depending on the establishment of the plantations itself.
FPISB mills is well equipped large scale fully mechanised equipment, resulted in the
evolution of a sequence of processing steps designed to extract harvested oil palm
bunch into high yield edible crude palm oil. The oil winning process involves the
receptions or fresh fruit bunches from the plantations, sterilizing and threshing of the
bunches to free the palm fruit.
Unit CPO, PK & FFB merupakan unit yang menjalankan menguruskan proses belian
buah sawit segar bagi menghasilkan minyak melalui sabut di luar tempurung dan isi
kelapa sawit. Hasil ini akan di hantar ke kilang proses buah sawit (FPI).

Sabut yang di proses ini akan menghasilkan minyak sawit mentah (CPO). Hasil ini akan
di asingkan dengan biji sawit. Biji sawit (PK) akan di jual kepada anak syarikat iaitu
Felda Kernel Product Sdn. Bhd.

2.3. GOAL ACHIEVEMENT STRATEGIES LASTLY, THE STUDENT NEEDS TO


2.4. SUMMARIZE (regards to operations, products and services offered by the
company/ organisations)

CHAPTER 3

COMPANY’S MANAGEMENT STRATEGIES

2.5. VISION, MISSION, AND GOAL COMPANY


2.6. IDENTIFIABLE OPPORTUNITIES
2.7. COMPANY’S STRENGTHS AND WEAKNESSES
2.8. THREATS TO THE COMPANY
2.9. SUGGESTION TO IMPROVE THE COMPANY’S PERFORMANCE AND
OTHER ANALYSISTS IF NEEDED.
During my internship in finance department, I think company should be more
systematic in management such in general ledger, asset profile and so on. So, I
want to suggest that are the company should use the electronic form to be keying
the data. So,
2.10. SUMMARIZE (regards to operations, products and services offered by the
company/ organisations)