Plantations Overview: Malaysia

Oil Palm Estate Locations

A total of 42 oil mills throughout Malaysia are engaged in the processing of the Division’s FFB harvests. Average capacity of Sime Darby Plantation’s mills is 49,870 tonnes/day.

Prospects and Strategic Plan

Sime Darby Plantation’s improved performance within the next three years is bolstered by its profile of young palm trees, which represent 16 per cent of the total planted hectarage in Malaysia.

On-going initiatives to derive high yield will continue with estates and mills adopting Best Agricultural Practices, and the planting of high-yielding clonal palms.

For effective management and cost-efficiency, Sime Darby Plantation’s estates and mills operate within an organisational structure of strategic operation unit (SOU), zones and regions.

Rubber Plantation

The shrinking of world’s rubber area, high increase in petroleum prices, expansion of the world’s automobile industry and growth in the medical field, gradually give rubber, which experienced its bleak era for the past 10 to 15 years, a new lease of life.

While oil palm reigns as the main crop of Sime Darby Plantation, the company is reducing the Group’s dependence on a mono-crop business with the planting of rubber.

To date Sime Darby Plantation owns 10,116 hectares of rubber plantation concentrated within the rubber cluster in Negeri Sembilan, Melaka and north Johor namely in:

• Bukit Pilah Estate,
• Pertang Estate,
• St Helier/Juasseh Estate,
• Bradwall Estate,
• Sungei Sabaling Estate,
• Sungei Bahru Estate,
• Welch Estate,
• Tangkah Estate and;
• Sungei Senarut Estate

Apart from the estates, Sime Darby Plantation also owns a latex concentrate factory in Sungei Senarut Estate and a SMR rubber factory in Tangkah Estate. Sime Darby’s associate company Muang Mai Guthrie Public Company Limited, involves in the mid stream rubber processing, owns two factories in Phuket and Surat Province, Thailand, producing primarily latex concentrate, skim block rubber and epoxidised natural rubber (ENR).

These various rubber products are sold to local rubber manufacturers as well as exported all over the world. Sime Darby’s rubber plantation has been certified Well-Managed Plantation by the Forest Stewardship Council since 2002.

Prospects and Strategic Plans

Sime Darby Plantation takes the development in rubber industry as a positive sign that the industry is stabilising itself. The company is leveraging its current strength and recognises rubber as one of the core businesses, capable of contributing significantly to the Group. Sime Darby Plantation owns the necessary expertise, resources and technology in production and processing of rubber as well as strong market access and reputation in respect to rubber business.

The positive development in the rubber industry also gives Sime Darby Plantation the confidence to expand its plantation size. Sime Darby Plantation has identified some areas in Malaysia, South East Asia and Africa for expansion.

Sustainable Practices in the Plantation

Sime Darby Plantations is committed to Sustainable Development of Palm Oil and strives to meet the stringent criteria set by the Roundtable of Sustainable Palm Oil (RSPO).

To witness what we do, click here – Sustainability