Student innovation to tackle climate risks on Carey Island through real-world adaptation solutions

Kuala Lumpur, 12 August 2025 – The Securities Commission Malaysia (SC), in collaboration with ICAEW Malaysia, has launched the Coastal Flooding Adaptation & Resilience (COFAR) Challenge.

This Challenge invites university students across the country to develop practical, viable and future-proof adaptation solutions for Carey Island, a coastal community in Selangor facing mounting threats from sea-level rise, storm surges and saltwater intrusion.

Led by the SC, the COFAR Challenge is part of its broader Adaptation & Resilience agenda, which aims to build knowledge, inspire innovation and support long-term climate resilience through the capital market.

Speaking at the COFAR Challenge Webinar, SC Chairman Dato’ Mohammad Faiz Azmi said that the Challenge is one of the SC’s key initiatives to drive climate adaptation. “It brings together students from various fields to find real solutions for coastal flooding, especially along Malaysia’s vulnerable west coast.”

“We believe the ideas that shape tomorrow must begin today – and they must come from the next generation,” he said.

The initiative is jointly organised with ICAEW Malaysia, whose commitment to nurturing future-ready finance professionals aligns with the COFAR Challenge’s goal of integrating financial viability into climate adaptation.

We are proud to support the COFAR Challenge as it empowers the next generation to apply financial insight to real-world climate issues,” said Shenola Gonzales, Head of Malaysia, ICAEW. “By equipping future professionals with the skills to design viable, resilient solutions, we’re helping to embed sustainability and innovation at the heart of finance.”

SD Guthrie (Guthrie), the technical partner for the Challenge, provides site-specific insights. The company owns 79% of Carey Island and has committed to implementing feasible solutions developed through the Challenge.

“As technical partner, Guthrie will provide COFAR participants with guidance on engineering design and knowledge of the Carey Island coast where the challenge site will be,” said Jeffry Faizal Kamaruddin, Guthrie’s CEO of Upstream Malaysia. “Our technical team have conducted a gap analysis of existing flood mitigation infrastructure, such as sea walls, bunds and water management on the island which have proven costly and offer limited returns. Guthrie currently manages over 100 kilometres of bunds around Carey Island as part of our plantation operations.”

Southeast Asia Disaster Prevention Research Initiative (SEADPRI-UKM) the knowledge partner brings deep expertise in disaster risk reduction and strengthens the academia-policy bridge essential for resilient planning.

”The COFAR Challenge exemplifies the kind of interdisciplinary collaboration that is urgently needed to tackle climate threats at the community level.” said Dr. Nurfashareena Muhamad, Head of SEADPRI-UKM. “By integrating science, policy, and finance, we can empower young Malaysians to design adaptive solutions that are not only technically sound, but also locally grounded and economically viable. SEADPRI-UKM is proud to support this initiative as a platform for building capacity and accelerating innovation in climate adaptation.”

Carey Island was selected as the live case study due to its similarity to other vulnerable coastal regions in Malaysia and Southeast Asia. This makes COFAR not just a competition, but a real-world opportunity to shape a community’s future.

Participants will be challenged to combine infrastructure, nature-based solutions, from modular infrastructure and mangrove buffers to aquaculture and eco-tourism. Solutions should mitigate saltwater intrusion, storm surges, and sea-level rise, and include a revenue-generating financial model. The design should be scalable for broader application across Selangor’s west coast.

Finalists will pitch their ideas at the ICAEW Sustainability Summit in November 2025. Winners will receive up to RM50,000 in cash prizes and be recognised at the ASEAN Capital Markets Forum (ACMF) International Conference in November 2025, offering students regional exposure and the chance to contribute directly to Malaysia’s climate resilience.

The Challenge is open to students from all universities in Malaysia and Malaysian students enrolled in universities abroad. Teams should consist of 5-6 team members, including at least one member from the accounting/finance and engineering faculties respectively.

•    Upstream operations maintain upward momentum, doubling profits year-on-year
•    Industrial development business pillar expands promisingly with key strategic partnerships announced 

Petaling Jaya, 7 August 2025 – SD Guthrie Berhad (Guthrie or the Group), registered a net profit of RM1.07 billion for the six months ended 30 June 2025 (1H FY2025), an impressive 71% year-on-year (YoY) increase from the RM626 million net profit recorded in 1H FY2024. For 2Q FY2025, Guthrie recorded a 22% rise in net profit to RM505 million from RM415 million in the previous corresponding period. Guthrie’s continued strong performance demonstrates resilience in its operations, primarily the Upstream segment which recorded a twofold increase in profits in 1H FY2025. 

During the period, the Upstream operations benefited from higher YoY average realised crude palm oil (CPO) and palm kernel (PK) prices which rose by 3% and 50% YoY to RM4,146 and RM3,247 per metric tonne (MT), respectively. Furthermore, the Group’s fresh fruit bunch (FFB) production increased by 4%, as all segments registered higher FFB production.

The Group’s Downstream segment, SD Guthrie International (SDGI), registered a 44% YoY decrease in PBIT in 2Q FY2025 to RM126 million from RM225 million in 2Q FY2024 as its business landscape remained challenging. SDGI’s operations across Asia Pacific and Europe were impacted by lower demand and tighter margins. However, encouraging performance was achieved in Oceania which recorded commendable operating profits with higher sales volumes and margins.

Key Highlights

Chairman, Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani said:

“Moving into second half of FY2025, the global economic and operating environment remains volatile and unpredictable. As such, the meaningful progress made in our operational excellence initiatives, and the steady uptick in activities within the new Industrial Development segment and continuous progress made in the Renewables sector, will help to future proof the Group.

I am pleased with Guthrie's momentum and am confident that our disciplined approach to driving measurable results will deliver long-term and sustainable value to shareholders.” 

Group Managing Director, Datuk Mohamad Helmy Othman Basha said:

“The Group’s performance in this period bears testament to our robust strategy and disciplined execution, as we continue to prioritise operational excellence. Even as our core business segments regain momentum, the new and expanded strategic focus to pursue broader growth initiatives is starting to take shape.

As we expand into our new pillars on the back of the national development agenda, we are committed to ensuring the collaborations on our land are well-strategised and take into consideration the development potential of the area and also the impact to surrounding communities. The recent Memorandum of Understanding (MoU) with Permodalan Negeri Selangor Berhad (PNSB) to co-develop a Food Security and Edu-Tech Hub on Carey Island is a prime example of our commitment. Here the focus is not only to stimulate economic growth on the island, but also to ensure the existing community and rich heritage are protected. Guthrie values opportunities to be involved in such meaningful developments.” 

OUTLOOK FOR FY2025:

CPO price is expected to remain volatile in the second half of 2025 as the industry enters into its peak output cycle, supported by improved weather conditions, softer biodiesel demand amidst the low crude oil price environment, and the ongoing global macroeconomic uncertainty. Whilst the price discount of palm oil relative to other vegetable oils is likely to support stronger demand from key markets, persistent macroeconomic headwinds, coupled with uncertainties in the global trade environment following the US’ revised tariff measures, are adding further volatility to the overall operating environment.

The Group anticipates improvement in FFB production in the second half of the year, supported by better operating conditions as well as productivity enhancement efforts across our operations in Malaysia, Indonesia, Papua New Guinea and Solomon Islands. The Group’s diversified geographical presence also provides it with greater flexibility in managing evolving trade policies and local tax regulations. Additionally, the Group’s focus on its new business pillars has gained traction and is expected to enhance the Group’s performance. This reflects our proactive approach to long-term growth and the strong momentum we are carrying into the second half of the year.

The Group remains committed to delivering resilient and competitive performance supported by strategic execution and proactive measures in navigating a dynamic market environment.

Guthrie will transition all operational machinery and diesel-powered vehicles on the island to run on B30 biodiesel, a blend of 30% palm-based biodiesel and 70% petroleum-based diesel

Petaling Jaya, 18 July 2025 – SD Guthrie Berhad (Guthrie) has launched the B30 Biodiesel pilot project with partners, Ministry of Plantation and Commodities (KPK), Petronas Dagangan Bhd (PDB) and Malaysian Palm Oil Board (MPOB), to ensure a reliable and scalable supply of higher bio-content diesel for its plantations in Carey Island, Selangor.  

Through this project, Guthrie will transition all operational machinery and diesel-powered vehicles in its plantations in Carey Island to run on B30 biodiesel, a blend of 30% palm-based biodiesel and 70% petroleum-based diesel. For Guthrie’s operations, this cleaner-burning fuel offers up to 23% reduction in greenhouse gas (GHG) emissions per litre compared to conventional diesel. The B30 biodiesel will be sourced from PDB’s Melaka terminal.

Reinforcing Guthrie’s role as a first mover in decarbonisation within the plantation sector, Datuk Mohamad Helmy Othman Basha, Group Managing Director of Guthrie said, the company’s latest initiative aligns with the country’s aspiration to reduce dependence on fossil fuels and promote the use of biodiesel, a fuel derived from palm oil, as an alternative to conventional diesel. The project is also in line with Guthrie’s own commitment to reducing carbon emissions and advancing sustainable energy.  

“The launch of our B30 Biodiesel campaign is an important milestone in Guthrie’s journey towards net-zero emissions. By transitioning our entire fleet of operational machinery in Carey Island to B30, we are not only reducing our greenhouse gas emissions but also setting a new benchmark for sustainable practices in the plantation sector,” said Mohamad Helmy.

In 2023, Guthrie became the world’s first palm oil company to have its Net-zero targets validated by the Science Based Target initiative (SBTi). By adopting a cleaner fuel source, the company will be able to reduce its Scope 1 emissions, which account for 31% of the Group's total emissions. 

Carey Island was chosen as the location of the pilot project as it is the central hub of Guthrie’s on-going initiative to mechanise, automate and digitalise oil palm plantation operations. On the island, apart from its own biodiesel plant, Guthrie has also established a Mechanisation Transformation Unit and Robotics Centre to develop technologically advanced solutions to transform manual work that has been performed in plantations over the past 100 years into mechanised solutions that are easier and more efficient for workers. The B30 pilot project will focus on machines which have been developed as part of Guthrie’s mechanisation efforts and are currently being used in its operations.

Despite the higher cost of B30 compared to current biodiesel blends, Mohamad Helmy said he hopes that the B30 pilot project will pave the way for the eventual implementation of a national B30 mandate, ultimately driving greater domestic consumption of palm oil. It will also provide a valuable opportunity for engine manufacturers to assess the long-term impact of higher biodiesel blends on engine performance.

“We are proud to lead this initiative — but Carey Island is just the beginning. Our goal is to scale this across all Guthrie operations to further reduce our emissions. Together with KPK, Petronas and MPOB, we are demonstrating how palm oil can be part of the climate solution, supporting Malaysia’s green economy transition while enhancing the efficiency and resilience of our plantations,” he added.

Based on typical annual diesel consumption for plantation machines, Guthrie’s full transition to B30 biodiesel throughout its entire operations in Malaysia is projected to reduce CO₂ emissions by approximately 9,000 tonnes annually. This is equivalent to removing over 1,956 passenger vehicles from the road each year.

The B30 pilot project builds on the momentum of the National Biodiesel Programme, which began commercial operations in 2011 with the B5 programme. It was subsequently expanded to B7 in 2014 and B10 in 2019, followed by the official launch of B20 in 2020, which is currently being implemented and rolled out in phases across Malaysia. Guthrie has also started a pilot project using B20 biodiesel at its Seri Pulai estate in Johor in June.

Shah Alam, 8 July 2025 – Permodalan Negeri Selangor Berhad (PNSB), a wholly-owned subsidiary of the Selangor State Government, today formalised a historic Memorandum of Understanding (MoU) with three key strategic partners; SD Guthrie Berhad, IJM Corporation Berhad and Yayasan Selangor to realise the development of an Edu-Technology Park and Food Security Hub on Carey Island.

The document exchange ceremony was witnessed by The Right Honourable Dato’ Seri Amirudin bin Shari, Chief Minister Selangor, and was also attended by heads of Selangor State Government Departments and Board members and senior management of PNSB, SD Guthrie Berhad, IJM Corporation Berhad, and Yayasan Selangor.

Dato’ Seri Amirudin bin Shari, who is also the Chairman of PNSB’s Board of Directors, stated that this project symbolises Selangor’s future aspiration to be a smart, competitive state and a regional leader in green economy and food security.

“This project not only reflects the State Government’s grand vision but also strengthens Carey Island’s position as an international hub for technology-driven development, education, and food security,” said the Chief Minister in his keynote address.

PNSB Signs Three MoUs with Yayasan Selangor, SD Guthrie Berhad & IJM Corporation Berhad

In conjunction with its 35th anniversary this year, PNSB has been entrusted to spearhead this pioneering project. The Edu-Technology Park will feature artificial intelligence (AI), smart infrastructure, and green energy technology, while Yayasan Selangor will develop an international-standard campus to enhance educational access and build human capital.

“Yayasan Selangor will play a key role in developing education facilities for the next generation. This is not just a physical investment, but an investment in the younger generation of Selangor,” added the Chief Minister, who is also the Chairman of the Board of Trustees of Yayasan Selangor.

PNSB’s Collaboration with Yayasan Selangor

In his speech, YM Raja Ahmad Shahrir Iskandar bin Raja Salim, Chief Executive Officer of PNSB, emphasized that this development will position Carey Island as a centre for the collection, processing, and distribution of halal food, complete with international-standard bulk raw material storage tanks (silos), cold chain systems, and agro-logistics infrastructure – in line with the objectives of the National Food Security Agenda 2030.

According to YM Raja Ahmad Shahrir Iskandar, “PNSB is deeply honoured by the commitment of our strategic corporate partners, SD Guthrie Berhad and IJM Corporation Berhad, as well as Yayasan Selangor, to be part of this project. This demonstrates the private sector’s confidence in the potential and impact of this initiative, and it can be seen as a Pilot Project to drive the ‘Carey Island Economic Transformation Vision’ to become Selangor’s new regional and global economic growth hub within ASEAN.”

He also extended his appreciation to YM Raja Nazirin Shah Raja Mohamad, Chief Executive Officer of Yayasan Selangor, for his leadership in championing the state’s education development agenda as a partner aligned with PNSB in this project.

Chief Executive Officer of Yayasan Selangor, YM Raja Nazirin Shah Raja Mohamad, stated that this collaboration not only focuses on physical and economic development, but also prioritises long-term social benefits.

He added that one of Yayasan Selangor’s main objectives in this engagement is to generate sustainable additional funding to support educational programs and financial aid for Selangor’s children.

“As the state’s educational agency, we believe that this strategic partnership will open new funding avenues, enabling more students from underprivileged backgrounds to gain access to quality education. This development is not merely about economics, but a long-term investment in the future of Selangor’s youth,” said YM Raja Nazirin Shah.

MoU between PNSB and SD Guthrie

The Memorandum of Understanding (MoU) between PNSB and SD Guthrie Berhad aims to explore the development of an approximately 470-acre visionary Edu-Technology Park and Food Security Hub on Carey Island, Selangor. The 470-acre site is part of a masterplan that includes 1,296 acres of land that belongs to Yayasan Selangor.

The MoU marks the second strategic collaboration to develop parts of Guthrie’s land on Carey Island, which will coexist with the thriving integrated plantation business that has existed on the island for decades.

Guthrie’s Group Managing Director, Datuk Mohamad Helmy Othman Basha, said this latest milestone offers Guthrie another opportunity to unlock the value of its landbank, and enabling the growth of its new business vertical, the development of industrial parks. Mohamad Helmy also lauded the efforts to address Malaysia’s food security needs, which are part of the masterplan.

“Guthrie is excited to explore this collaboration with PNSB to develop a high-impact and sustainable, economic and innovation hub in Selangor. Carey Island is already the centre of Guthrie’s R&D, mechanisation, automation and innovation initiatives, and as such, is well suited to be the site of the Edu-Tech Park and Food Security Hub,” he said.

Guthrie owns 79% of Carey Island, or 28,646 acres where the company’s plantations are 100% certified sustainable to international standards. The island is an important location for the national Palm Oil industry, frequented by visitors from around the world, including foreign government delegations, ambassadors, R&D institutions and universities.

Besides its two estates, Guthrie also operates two palm oil mills on the island, a kernel crushing plant, a biodiesel plant, research and development facilities, a robotics and innovation centre, and a nursery. Palm oil produced on Carey Island is processed in two large refineries located nearby in Teluk Panglima Garang and Port Klang, which serve customers from around the world.

“A strategic and sustainable approach to developing Carey Island is critically important – both to stimulate economic growth and to preserve the island’s plantations and valuable heritage elements. This includes ensuring that its heritage buildings and rich biodiversity are protected, and that the needs and well-being of local communities, including the indigenous Mah Meri people on the island, are prioritised,” he added.

IJM signs MoU with PNSB for development initiative in Carey Island

IJM Corporation Berhad (“IJM”) has signed a Memorandum of Understanding with Permodalan Negeri Selangor Berhad (PNSB) to explore potential development initiatives in Pulau Carey. As the developer and infrastructure partner for the proposed Edu-Technology Park and Food Security Hub, IJM will work alongside PNSB, the project’s lead proponent and SD Guthrie, the landowner and equity partner, to support the planning and potential rollout of key development components.

With multidisciplinary expertise across industrial development, masterplanning, road networks, logistics facilities, utility systems and industrial support infrastructure, IJM brings the capabilities required to deliver large-scale, sector-focused developments. Its integrated approach ensures that infrastructure and development solutions are aligned with long-term planning, land use and sustainability objectives.

IJM is the lead developer of the Malaysia–China Kuantan Industrial Park (MCKIP), a 3,500-acre national-level industrial zone that has attracted over RM30 billion in committed investments and created more than 20,000 jobs to date. MCKIP reflects IJM’s ability to deliver complex, multi-stakeholder industrial developments that support regional and national economic priorities.

“This collaboration allows us to apply our industrial development and infrastructure expertise to support Selangor’s ambitions in high-value, next-generation sectors,” said Dato’ Lee Chun Fai, Group Chief Executive Officer and Managing Director of IJM Corporation Berhad.

“Our aim is to deliver scalable, well-planned infrastructure that meets the practical needs of education, food security and technology-led industries. With our track record in projects like MCKIP, we understand what it takes to build ecosystems that are investment-ready, sustainable and built for growth. We look forward to working alongside PNSB, SD Guthrie and other collaborators as Pulau Carey develops,” he added.

New Investment Potential for Selangor

The Right Honourable Chief Minister also informed that the state government had received two official visits from the Embassy of the United Arab Emirates (UAE), the first on 14 April 2025, and the second during the ASEAN-GCC-China Summit on 27 May 2025. Both visits conveyed the UAE's commitment to explore strategic investments in this project. It was also reported that investors and manufacturers from China and the Middle East have shown interest in investing following a preliminary agreement with PNSB since 2024.

“Today’s collaboration reflects investors’ strong confidence in Selangor. We are ready to face regional geopolitical and economic challenges with sound policies and strategic development,” said the Chief Minister.

The project will be implemented based on sustainable governance principles (ESG) and is expected to be a key driver in strengthening Selangor’s position as a future hub for investment and innovation in the ASEAN region.

With this third announcement in Negeri Sembilan, SD Guthrie is on track to unlock the value from its strategically located landbank in the state

Seremban, 24 June 2025 – SD Guthrie Berhad (Guthrie) has signed a Sale and Purchase Agreement (SPA) for 300 acres of land, and a Memorandum of Understanding (MOU) to establish a joint venture (JV) to develop an industrial park on an additional 300 acres of land, with Menteri Besar Incorporated Negeri Sembilan (MBINS). The signing of the documents was witnessed by Dato’ Seri Utama Aminuddin bin Harun, Menteri Besar of Negeri Sembilan and Chairman of MBINS.  

The 600-acre site is located in Guthrie’s Sengkang Estate, which lies within the Mukim of Pasir Panjang in the district of Port Dickson, Negeri Sembilan. The proposed JV would establish a framework for collaboration on the development of an industrial park. Subject to the JV’s incorporation and finalisation of a masterplan targeted in Q1 2026, infrastructure works for the industrial park are expected to commence in Q2 2026. 

According to Datuk Mohamad Helmy Othman Basha, Guthrie’s Group Managing Director, these latest milestones mark a significant step in Guthrie’s ongoing efforts to maximise the value of its landbank and are expected to facilitate the development of the Port Dickson Free Zone (PDFZ), the state’s strategic economic initiative. 

“Our collaboration with MBINS is another important milestone for Guthrie as we strengthen our presence in Negeri Sembilan’s industrial development sector. By combining land monetisation and a key strategic partnership with MBINS, we are able to realise the value of the land immediately and also secure another potential recurring income stream for Guthrie. This scalable model is necessary for the long-term growth of Guthrie and one we aim to replicate across other high-potential corridors,” said Datuk Mohamad Helmy.

“The PDFZ is a forward-looking initiative, and we are proud to be part of a development that aligns with national development priorities and sustainable progress that will bring more socioeconomic benefits for the rakyat,” he added. 

Sengkang Estate is part of Guthrie’s plantation landbank and is strategically located near the coastal town of Pasir Panjang in Port Dickson. The area is accessible via the Seremban–Port Dickson Highway (SPDH) and the Port Dickson–Linggi road network. Both routes are connected to the North South Highway and offer easy access to the Malaysia Vision Valley 2.0 (MVV 2.0), the primary economic corridor on the west of Peninsular Malaysia. 

The collaboration between Guthrie and MBINS reflects a mutual ambition to foster inclusive and sustainable development in the PDFZ. The PDFZ is part of a broader development plan under the MVV 2.0, which includes various development areas such as NS High Tech Industrial Park, NS Aerospace Valley, Integrated Maritime Hub and NS Semiconductor Valley.

PDFZ will be developed on approximately 600 acres across from the future site of Midport, a smart AI-powered container port. Together, the two projects are set to reshape Port Dickson into a dynamic “New Port City”, anchored by advanced infrastructure, technology, and sustainable economic activity. 

“This collaboration is a manifestation of our serious commitment to sustainable, innovation-driven development. With the establishment of PDFZ, we are not only developing a modern industrial park but also laying the groundwork for Port Dickson to become Malaysia’s next-generation smart port city,” said YAB Dato’ Seri Utama Haji Aminuddin bin Harun, Menteri Besar of Negeri Sembilan.

PDFZ complements Midport by providing ready industrial space and support facilities, including smart warehouses, advanced manufacturing zones and high-capacity utilities. Investors operating within PDFZ will benefit directly from their proximity to a smart container port, enabling just-in-time logistics and supply chain optimisation. 

"The success of Midport is intrinsically linked to the development of PDFZ. Together, they form a twin-growth model that will attract global industry leaders, support high-value jobs, and enhance Negeri Sembilan’s role in national economic development,” the Menteri Besar added.

PDFZ is set to deliver far-reaching benefits to the state, including the creation of skilled job opportunities, the development of next-generation infrastructure, and the promotion of environmentally responsible industrial clusters. This initiative aligns with national aspirations and is designed to attract quality investors in high-impact sectors such as green technology, smart logistics, and advanced manufacturing. 

In Negeri Sembilan, Guthrie recently established a strategic partnership with Eco World Development Group Berhad and NS Corporation to develop ‘Eco Business Park 7’ in Mukim Jimah. The company is also in active discussions with other state agencies and potential business partners to grow the company’s new business pillars in strategically located land parcels across Malaysia. With this strategic approach, Guthrie will protect its future interests and also unlock the full value of its land. 

Collaboration to foster sustainable economic growth as future industrial and logistics hub.

Petaling Jaya, 20 June 2025 – SD Guthrie Berhad (SD Guthrie) and Sime Darby Property Berhad (SDP) have signed a joint venture agreement to develop up to 2,000 acres of land in Carey Island, Selangor, to support sustainable economic growth and innovation.  

This joint venture agreement is a culmination from discussions which began in 2023, and is driven by a shared vision for long-term value creation that will be formalised through the establishment of a special purpose vehicle (SPV). The collaboration represents a unique opportunity for both companies to unlock Carey Island’s full potential, transforming it into a leading industrial and logistics hub that will co-exist with the integrated and well-established palm oil business on the island, and complement the existing operations at Westport and Northport in Port Klang. Both SD Guthrie and SDP are strategic investee companies of Permodalan Nasional Berhad (PNB), one of the largest fund management companies in Malaysia. PNB will nominate the Chairman of the newly formed SPV. 

“We laud and greatly support this joint venture between SD Guthrie and SDP, which aligns with national aspirations and GEAR-uP initiatives by the Government in catalysing domestic investments. This collaboration between PNB's two strategic companies will provide a boost towards the sustainable development of this high potential area as well as help bolster further Malaysia's economic and industrialisation growth,” said PNB President & Group Chief Executive Dato’ Abdul Rahman Ahmad. 

The 2,000 acre site on Carey Island provides the scalability required for the world-class logistics facilities, integrated supply chains, and high-value industrial developments, required to attract global players and investments. The port will thus be well-positioned to compete with regional ports in Singapore, Thailand, and Vietnam, giving a boost to Malaysia’s aspirations to become a logistics powerhouse in the region.

Today, Carey Island is celebrated for its fully integrated oil palm plantation, the last one of its kind in the Greater Klang Valley. It is an important location for the Malaysian plantation industry and is used frequently to host visitors from around the world, including foreign government delegations, ambassadors, R&D institutions and universities. SD Guthrie operates two estates and palm oil mills on the island, all of which are certified to the highest sustainability standards in the world. Also on the island are a kernel crushing plant, a biodiesel plant, research and development facilities, a robotics and innovation centre, and a nursery. Palm oil produced on Carey Island is processed in two large refineries located nearby in Langat and Port Klang, which serve customers from around the world. There are also 14 historical buildings on Carey Island that are listed as heritage sites by Jabatan Warisan  Negara, as well as a large bio-diversity park and sensitive mangrove ecosystems that are maintained by SD Guthrie. 

Combined with the thriving plantation business, the new development on Carey Island will stimulate economic growth, generate employment opportunities and uplift the local economy, while preserving the valuable heritage elements of the site. 

The strategic approach to foster sustainable value creation, will ensure that the needs and well-being of local communities, including the indigenous Mah Meri people on the island, are prioritised. Furthermore, the collaboration aligns with the Ekonomi MADANI Framework which aims to elevate Malaysia into the ranks of the world’s top 30 economies by leveraging on and enhancing economic complexity. The integration of this initiative with the national framework, will significantly contribute to establishing Malaysia as a leader in Asian economies, fostering economic resilience and global competitiveness.

“We fully support the Government’s aspirations to accelerate the growth of international trade and cater to the demand for innovative industrial facilities. Carey Island has been identified by the Government as the new site for a world-class port due to its suitable and strategic location near Port Klang, and proximity to Pulau Indah. Additionally, the island is conveniently connected to the city via the South Klang Valley Expressway (SKVE) which integrates with the North-South Expressway, ensuring accessibility. The highways and connectivity offer tremendous potential for the area to grow into an industrial and logistics hub, while enabling the thriving plantation business in the area to continue,” said Datuk Mohamad Helmy Othman Basha, SD Guthrie’s Group Managing Director. 

SD Guthrie owns 79% of Carey Island, or 28,646 acres. The plantations is managed sustainably to ensure environmental conservation. In 2024, SD Guthrie announced its expansion into two new business areas: industrial parks and renewable energy.

“We are excited to partner with SD Guthrie on this timely opportunity to unlock value in Carey Island as a dynamic port and advance the nation’s aspirations of becoming a regional logistics and economic hub. The collaboration allows us to begin master planning and designing a future-ready industrial ecosystem that will serve the needs of businesses and communities for years to come, in line with our Purpose to be a Value Multiplier for people, businesses, economies and the planet,” said Dato’ Seri Azmir Merican, Group Managing Director & Chief Executive Officer of Sime Darby Property. 

With over 50 years of expertise in real estate development, SDP has established a strong track record in developing multiple award-winning industrial parks across nine of its townships, covering over 6,000 acres activated across multiple economic corridors. These include E-Metro Logistics Park in Bandar Bukit Raja in Klang, and Elmina Business Park in the City of Elmina, which has attracted global players such as Google. Other key developments include Serenia Business Park in Serenia City, Bandar Universiti Pagoh Industrial Park in Johor, as well as projects in Negeri Sembilan which include the XME Business Park and the upcoming Vision Business Park. This reinforces SDP’s role in providing integrated, future-ready industrial solutions that meet investor demands and support national development priorities.

This initiative is poised to drive long-term growth and create value for our stakeholders. 

The Companies will make further announcements as material developments occur. 

Petaling Jaya, 8 December 2022 - Sime Darby Plantation Berhad (SDP), the world’s largest producer of certified sustainable palm oil, has developed a comprehensive strategy to achieve net-zero emissions across its entire value chain by 2050. SDP has aligned its action plans with the Paris Agreement targets to limit global temperature rises to no more than 1.5°C.

SDP’s net-zero strategy has been developed in line with science and the SBTi Criteria. SDP submitted both its near-term 2030 targets and longer-term 2050 targets to SBTi on 10 November 2022 for validation. SDP’s net-zero strategy commits to 100% absolute overall emissions reduction in Scope 1 and 2 by 2050, with all unabated Scope 3 emissions balanced by an appropriate amount of carbon removals or offsets.

SDP has taken a three-pronged approach:

1. Acceleration of its renewables programme
2. Land use transformation
3. Accelerating engagements with suppliers

SDP will have more than 40 biogas plants across its operations by 2030, which will address much of the emissions from mill effluent. Up to 70% of SDP’s footprint for non-FLAG (Forest, Land and Agriculture (SBTi definition)) Scope 1 and 2 emissions come from methane produced from mill effluent.

SDP is expanding on existing reforestation, conservation and biodiversity initiatives. This includes reforestation of non-productive agriculture land as well as large-scale tree-planting as a nature-based solution to increase carbon sinks. For instance, the Group has decided to reforest a 400 ha area of peat plantations in East Malaysia. To date, SDP has forest set-aside programmes of more than 40,000 ha, with over 1.9 million forest trees planted.

SDP will reinforce its No Deforestation, No Peat and No Exploitation (NDPE) commitments.

SDP recognises that addressing Scope 3 emissions, generated from third-party suppliers or others in the value chain, presents the greatest challenge on our net-zero journey. SDP has therefore committed to engaging suppliers in order to ensure the replication of its own measures not only within its own operations but also across its entire value chain. In 2021, SDP achieved 71% compliance in its supply chain for its earlier ambition to be deforestation-free.

The new developments build on SDP’s existing sustainability strategy, which has three key elements: Climate Action, Human Rights and Responsible Sourcing.

SDP’s Responsible Agriculture Charter (RAC), which was launched in 2016, forms the backbone of its climate action workstream. In 2021, SDP had committed to 50% carbon reduction by 2030.

The SBTi is a collaboration between the CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC). It independently assesses and approves companies’ targets through a Call-to-Action campaign. The SBTi’s rigour and comprehensive scope enable companies to take meaningful steps toward accelerated decarbonisation. This target-structured approach, which is externally validated, will ensure that SDP sets measurable and meaningful targets, which it will review and update as SBTi’s standards evolve.

Once achieved, SDP’s net-zero aspiration will be the latest in a long line of environmental achievements in SDP’s 200-year history. The company is a founding member of the Roundtable on Sustainable Palm Oil (RSPO) and started working towards 100% RSPO certification across its operations in 2008, making sustainable, ethically-sourced palm oil its rallying cry.

Furthermore, SDP pioneered the industry’s zero-burning replanting technique to clearing fields of old and unproductive palms without using fire and causing emissions, whilst improving soil quality. With its breakthrough innovation in genome science, the Group’s 200-strong R&D team has also successfully developed GenomeSelect^TM seeds, which will nearly double crop yields by 2050. This yield improvement, in turn, will reduce the rate of expansion required to meet growing demand for palm oil as a result of population growth, helping to ensure food security. The same innovative approach is now being used by the Company to develop oil palms that can be more efficiently harvested as well as those that can better withstand disease and extreme weather conditions caused by climate change. SDP firmly believes its research will benefit the wider industry, and as a result has made the oil palm genome sequence public for all to use.

Mohamad Helmy Othman Basha, Group Managing Director of Sime Darby Plantation, commented:

“This is a landmark moment for the global palm oil industry. We have developed a comprehensive strategy to ensure that the commitments announced today will be met. With technological improvements, we may be able to do even better.

“At Sime Darby Plantation, we pride ourselves on leading sustainable standards and practices within the palm oil industry. With our net-zero commitment today, Sime Darby Plantation will continue to act with urgency and focus. We know that our challenge is significant, and time is short. We are committed to delivering the food the world needs in the most sustainable way possible.”