Parties ink shareholders’ agreement to develop 1,195 acres of land in Negeri Sembilan through special purpose vehicle, Eco Business Park 7 Sdn Bhd.

Petaling Jaya, 20 May 2025 – Eco World Development Group Berhad (EcoWorld), SD Guthrie Berhad (SD Guthrie), formerly known as Sime Darby Plantation Berhad, and NS Corporation Sdn Bhd (NS Corp) signed a shareholders agreement today, signalling the commencement of their plans to develop Eco Business Park 7 (EBP 7) in Negeri Sembilan.

The partners have agreed on their shareholding in Eco Business Park 7 Sdn Bhd, the special purpose vehicle that will develop EBP 7. EcoWorld will hold 55%, while SD Guthrie Land Ventures Sdn Bhd (SDGLV), a wholly owned subsidiary of SD Guthrie will hold a 30% stake and the remaining 15% will be held by NS Corp. The three partners had on 18 April 2025 signed a sales and purchase agreement (SPA), which had followed from a Memorandum of Understanding signed on 18 December 2024.

The shareholders’ agreement sets out the terms and conditions upon which SDGLV, NS Corp and EcoWorld have agreed to participate in EBP 7. It will enable EBP 7 to purchase the new land pursuant to the SPA, and to undertake the proposed development.

EBP 7 will purchase 1,195 acres of freehold land located in Mukim Jimah, Port Dickson, Negeri Sembilan. This sets in motion the plan to develop EBP 7 into an integrated and managed industrial park with supporting commercial hubs located within Parcel C of Malaysia Vision Valley 2.0 (MVV 2.0), the primary economic corridor on the west of Peninsular Malaysia. Eco World Project Management Sdn Bhd, a wholly-owned subsidiary of EcoWorld, has been appointed the development manager of the project.

With its strategic position within MVV 2.0, the new industrial park carries an estimated Gross Development Value (GDV) of RM2.95 billion and forms part of a larger initiative to advance sustainable development in Negeri Sembilan. It will offer access to a proposed Nilai-Labu Expressway that will connect the area to key infrastructure and logistic hubs such as Kuala Lumpur International Airport, Port Klang, Nilai and the wider west coast corridor via the PLUS Highway, offering connectivity and logistical advantages that are conducive for business growth.

The project aims to attract local and foreign investments, create high-value jobs and drive the state’s economic growth agenda. MVV 2.0, launched in December 2018, comprises six parcels of development area (Parcel A - F) within approximately 380,000 acres across the Seremban and Port Dickson districts, and is designed to complement the growth of Greater Kuala Lumpur.

Click here to read more information relating to this development from the initial announcement on 18 April 2025.

To download PDFs:
English

Upstream operations record a sharp rise in profits arising from increased production and average realised prices.
The Group signed a tripartite agreement to develop its landmark industrial park in Malaysia Vision Valley 2.0.

Petaling Jaya, 7 May 2025 – In a strong start to the financial year, SD Guthrie Berhad (SD Guthrie or the Group), formerly known as Sime Darby Plantation Berhad, registered a net profit of RM567 million in the first quarter of its financial year ending 31 December 2025 (1Q FY2025), an increase of 169% from the corresponding period (1Q FY2024) of RM211 million.

The Group’s Profit Before Interest and Tax (PBIT) increased 118% to RM818 million year-on-year (YoY), underpinned by the robust performance of the Upstream segment, which mitigated the decline in the Downstream segment.

The Upstream segment gained from higher YoY average realised crude palm oil (CPO) and palm kernel (PK) prices, as well as increased fresh fruit bunch (FFB) production. The Group’s realised CPO and PK prices averaged RM4,576 and RM3,342 per metric tonne (MT) respectively, a corresponding increase of 18% and 72%. FFB production in the Group's Indonesian operations rose by 11% whilst production in Papua New Guinea and Solomon Islands improved by 10%, cushioning the 7% decline in the Group’s Malaysian operations.

SD Guthrie International (SDGI), the Group’s Downstream arm recorded a lower PBIT of RM76 million in 1Q FY2025, representing a 37% decline YoY. SDGI’s performance was impacted by lower margins in the bulk and differentiated product segments, as well as weaker demand in its European and trading operations. This, however, was partially mitigated by better performance and higher profits from its Asia Pacific operations.

Key Highlights

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

“The uncertain operating environment, due to persistent inflationary pressures fuelled by volatile monetary and trade policies, as well as continuing geopolitical tensions, presents challenges that the Group will navigate with caution over the short and medium terms. Despite this, I firmly believe the Group has the necessary resilience and capability to face headwinds, just as we have in the past, underscoring the wealth of experience and unwavering commitment of our management and employees.”

Group Managing Director, Datuk Mohamad Helmy Othman Basha said:

“The Group kicked off the year on a strong note, as reflected by our solid performance, driven by ongoing efforts to enhance operational excellence. As the year progresses, we are cognisant of prevailing economic and geo-political conditions that may require strategic shifts to keep the Group on track for a strong FY2025.

On a positive note, our industrial park growth pillar has attained a noteworthy milestone with the recent signing of a tripartite agreement for the development of the Group’s prime land in Bukit Pelandok, Negeri Sembilan within the country’s Malaysia Vision Valley 2.0 growth area.”

OUTLOOK FOR FY2025:

CPO price is expected to soften in the near-term mainly due to a rebound in palm oil production as a result of improved weather conditions. Furthermore, demand from biodiesel blending is expected to weaken given the current low crude oil price environment. Whilst tariffs announced by the US may have minimal direct impact on Malaysian CPO, it has created uncertainty and volatility of prices across all vegetable oil markets. In addition to price uncertainty, the potential disruption in the global supply chain could further lead to an overall increase in operational costs.

Amidst rising market volatility, the Group expects modest improvement in FFB production,driven by its ongoing operational excellence and yield-enhancing initiatives. Whilst remaining vigilant to potential regulatory changes and international trade developments that could impact broader macroeconomic conditions, the Group believes that there are opportunities to expand its downstream footprint. It remains committed to pursuing growth opportunities surrounding its new business pillars of industrial park development and renewable energy.

The Group remains focused and resilient in delivering its performance in FY2025 and maintains a cautious outlook on the back of a challenging and unpredictable environment.

To download PDFs: 
English
Bahasa Malaysia

• 8,000 MT of fully traceable and segregated, *RSPO-certified sustainable palm oil shipped from Kunak Port, Sabah, on 19 February.
• Sourced from SD Guthrie’s supply chain in Sabah that produces the best quality palm oil for customers.

Petaling Jaya, 2 May 2025 – SD Guthrie Berhad (formerly Sime Darby Plantation Berhad) celebrated a landmark moment on 4 April 2025, with the first-ever tariff-free shipment of *RSPO-certified sustainable palm oil (CSPO) into the United Kingdom under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). SD Guthrie International Liverpool Refinery received the 8,000 MT of fully traceable and segregated CSPO. Shipped aboard the Dolphin 19 from Kunak Port, Sabah, on 19 February, the CSPO had also undergone stringent testing to ensure low levels of Mineral Oil Saturated Hydrocarbons (MOSH) and Mineral Oil Aromatic Hydrocarbons (MOAH).

The CPTPP is a free-trade pact initially agreed between 11 Pacific Rim countries, including Malaysia in 2018. The agreement eliminates most tariffs whilst promoting economic integration and upholding rigorous labour and environmental protections among its member countries. With the UK’s official membership of CTPP coming into effect on 15 December 2024, tariffs on crude palm oil and its derivatives imported from Malaysia into the UK have been eliminated. Previously, tariff had ranged between 2% and 10%.

Datuk Mohamad Helmy Othman Basha, SD Guthrie’s Group Managing Director, said the arrival of the shipment was a proud moment for the company which is one of the world’s largest producers of CSPO. “This milestone highlights not only the strength of Malaysia–UK trade relations, but also SD Guthrie’s strong commitment to ensure quality, traceability and security of sustainable palm oil supply to our discerning customers in the UK.”

For over a decade, SD Guthrie’s Liverpool refinery has been the company’s gateway for CSPO to enter the UK market, supplying approximately 50% - 55% of domestic palm oil demand. Its refined products are widely used for deep-frying in fish-and-chip shops across the country, and as key ingredients in the production of many popular brands of biscuits, baked goods and British confectionery favourites.

“While our supply chain in Papua New Guinea (PNG) has been and remains the main source of our products for the UK market, this latest shipment originating from our supply chain in Sabah underscores our capability to provide consistent and stable supply of CSPO to the UK, whilst maintaining the highest standards of quality, sustainability, and food safety. Depending on market conditions and customer requirements, we can offer customers the security of supply they need to run their businesses, from Malaysia or PNG,” he added.

This cargo’s full traceability means every drop of palm oil can be traced back to its exact estate and mill within SD Guthrie’s supply chain in Sabah, to ensure that it meets rigorous *RSPO environmental and social criteria. Its segregation ensures the consignment remains entirely separate from other conventionally produced palm oil throughout the journey—from plantation to port, tanker to refinery—guaranteeing genuine and untainted 100% sustainable product delivery.

In line with SD Guthrie’s focus on consumer health, the company’s supply chain in Sabah also produces high quality palm oil that meets international food safety standards, giving customers added confidence in the purity and safety of its products.

_{*RSPO –‘Roundtable on Sustainable Palm Oil’}

To download PDFs: 
English
Bahasa Malaysia

• 1,195 acres of land in Bukit Pelandok, Negeri Sembilan will be developed by the parties through a special purpose vehicle
• Project Estimated Gross Development Value is RM2.95 billion

Petaling Jaya, 18 April 2025 – A tripartite agreement was signed today to transform 1,195 acres of prime land in Bukit Pelandok, Negeri Sembilan, into an integrated industrial park. The alliance — uniting a strategically located land asset, renowned development expertise, and a forward-thinking masterplan — sets the wheels in motion for the development of Parcel C within Malaysia Vision Valley 2.0 (MVV 2.0), the primary economic corridor on the west of Peninsular Malaysia.

Eco World Development Group Berhad (EcoWorld), SD Guthrie Berhad (SD Guthrie) – formerly known as Sime Darby Plantation Berhad – and NS Corporation (NS Corp) will be strategic partners in this collaboration through Eco Business Park 7 Sdn Bhd (EBP 7), a special purpose vehicle established for this development. EcoWorld will hold 55% of EBP 7, while SD Guthrie Land Ventures Sdn Bhd, a wholly subsidiary of SD Guthrie will hold a 30% stake. The remaining 15% will be held by NS Corp.

The agreement was signed by:

1. DATUK MOHAMAD HELMY OTHMAN BASHA - Group Managing Director, SD Guthrie
2. DATO’ CHANG KHIM WAH - President & Chief Executive Officer, EcoWorld
3. NORAZHAR BIN MUSA - Chief Executive Officer, NS Corp

In the presence of distinguished witnesses:

1. YANG AMAT BERHORMAT DATO’ SERI UTAMA HAJI AMINUDDIN BIN HARUN - Chief Minister of Negeri Sembilan and Chairman, NS Corp
2. YANG BERHORMAT DATO’ MOHD ZAFIR BIN IBRAHIM - Negeri Sembilan State Secretary
3. TAN SRI NIK NORZRUL THANI NIK HASSAN THANI - Chairman, SD Guthrie
4. TAN SRI ABDUL RASHID BIN ABDUL MANAF – Founder, EcoWorld

EBP 7 will leverage on the synergies between the three entities – SD Guthrie’s strategically located land within the MVV 2.0, EcoWorld’s expertise and experience in successful industrial park developments, as well as NS Corp’s role as the state-appointed coordinator and custodian of the MVV 2.0 masterplan.

With its strategic position within MVV 2.0, the new industrial park carries an estimated Gross Development Value (GDV) of RM2.95 billion and forms part of a larger initiative to advance sustainable development in Negeri Sembilan. The project aims to attract local and foreign investments, create high-value jobs and drive the state’s economic growth agenda. MVV 2.0, launched in December 2018, comprises six parcels of development area (Parcel A - F) within approximately 380,000 acres across the Seremban and Port Dickson districts, and is designed to complement the growth of Greater Kuala Lumpur.

The industrial park, to be named Eco Business Park VII (EBP VII) is to be developed over nine years. It will feature industrial lots, ready-built factories, and commercial properties tailored to high-growth sectors, including those in the aerospace, electrical and electronics, logistics, and biotechnology industries. It will also offer access to a proposed Nilai-Labu Expressway that will connect the area to key infrastructure and logistic hubs such as Kuala Lumpur International Airport, Port Klang, Nilai and the wider west coast corridor via the PLUS Highway, offering connectivity and logistical advantages that are conducive for business growth.

“This partnership reflects the strong synergy between the public and private sectors in driving sustainable development in Negeri Sembilan. It is well aligned with the national agenda outlined under New Industrial Master Plan (NIMP) 2030 and the National Energy Transition Roadmap (NETR), thereby further reinforcing the State Government's commitment in strengthening investment landscape and economic growth, positioning Negeri Sembilan as a potential leading industrial hub in Malaysia,” said YAB Dato' Seri Aminuddin bin Harun, Chief Minister of Negeri Sembilan and Chairman, NS Corp.

“In the face of current global economic challenges and uncertainties in international trade, it is crucial that we strengthen our domestic economy. By focusing on high-value industries, we not only stand to attract quality investments, but also creating more high-skilled job opportunities in Malaysia, particularly in Negeri Sembilan,” he added.

SD Guthrie is one of the largest landowners in Malaysia, with extensive operations in the palm oil sector, parts of which are proximate to areas of high development value. Through strategic collaborations, SD Guthrie is unlocking the potential of this landbank across Malaysia. In Negeri Sembilan, it has 16 estates, three palm oil mills, and two biogas plants. In May 2024, SD Guthrie announced its entry into new business verticals – industrial parks and renewable energy, to create diversified and sustainable revenue streams.

“This collaboration is another pivotal step to unlock the significant value of our strategically located landbank,” said Datuk Helmy Othman Basha, SD Guthrie’s Group Managing Director. “In developing industrial parks as one of our new business verticals, SD Guthrie is continuing our approach of collaborating with more experienced partners in this sector to strengthen our own footprint. We are also delighted to be able to contribute to the long-term development of Negeri Sembilan and the national agenda.”

EcoWorld brings a wealth of development experience to the table with a diverse portfolio that includes residential, commercial, and industrial real estate. It has approximately 9,825 acres of total landbank across the Klang Valley, Penang, and Iskandar Malaysia, with an estimated GDV of RM90 billion. Of these, 2,415 acres are focused on industrial parks with four industrial parks in Iskandar Malaysia and one in Klang Valley. To date more than 1,400 local and international industrialists operate across EcoWorld’s Eco Business Parks. Demonstrating EcoWorld’s commitment to sustainability, nearly 90% of its projects have received green accreditation.

“At EcoWorld, we firmly believe that partnerships are the cornerstone of sustainable growth. It is through meaningful collaboration — bringing together complementary strengths, shared values, and a common vision — that we are able to do more, go further, and build better,” said Dato’ Chang Khim Wah, President & Chief Executive Officer of EcoWorld. “We look forward to working with SD Guthrie and NS Corp to develop EBP VII as a catalytic project that will help drive impactful infrastructure development, create meaningful employment opportunities, and unlock new avenues for investment and progress in Negeri Sembilan.

To download PDFs: 
⁠English
Bahasa Malaysia

Petaling Jaya, 21 October 2022 –In a watershed for the palm oil industry, Sime Darby Plantation Berhad (SDP) announced that it has successfully mechanised several tasks across its Malaysian plantation operations. As a result of a broadscale initiative launched just two years ago, SDP expects to eliminate the need for manual workers in all non-harvesting activities by the end of 2023.

“We expect to reduce the number of plantation workers by 55% by the end of 2023 and by the end of 2024, improve our land-to-man ratio to 1:17.5 or one worker for every 17.5 hectares (ha),” SDP Group Managing Director, Mohamad Helmy Othman Basha said. The current industry average is one worker for every 8 ha. As dependence on manual labour decreases, SDP also expects to improve productivity.

Speaking at the annual Oils and Fats International Conference (OFIC) this week, organised by the Malaysian Oil Scientists’ and Technologists’ Association, Mohamad Helmy unveiled seven new initiatives, several of which are industry firsts that the company had developed internally or co-developed with start-ups and technology providers. Several of these initiatives have already been implemented across the Group’s Malaysian operations, while others are either in prototype or concept stage.

“After more than 100 years of working the same way, heavily dependent on manual and menial labour, our industry can finally move forward,” Mohamad Helmy said.

Through advanced mechanisation, automation and digitalisation of its operations, SDP is making work in plantations more sophisticated and less laborious, which will also go a long way towards attracting a more skilled Malaysian workforce to the industry. SDP aims to have a 100% local workforce for its Malaysian plantation operations by the end of 2027.

Mohamad Helmy showed footage of drones spraying seedlings in nurseries and unmanned ground vehicles undertaking tasks that have been described as “dirty, dangerous and difficult”. In SDP’s Malaysia operations, drones have replaced over 100 workers who, historically, had carried backpacks of chemicals to spray young seedlings in nurseries.

“During the pandemic, when foreign workers returned to their home countries, we were unable to replace them, which resulted in a sharp drop in productivity. We knew we had to take drastic action,” Mohamad Helmy said. To find new solutions for the age-old problem, a special project team within SDP was formed in October 2020, comprising leaders from different disciplines within the company. The initiative was dubbed ‘Project Infinity’. Today, the future envisioned by the Company two years ago is taking shape.

The palm oil industry is typically, highly labour-intensive. Prior to the pandemic, 80% to 85% of the plantation operations’ workforce were migrant workers, though at SDP, foreign workers accounted for about 75% of the plantation workforce.

Increasing productivity

Mohamad Helmy explained that there are two (2) critical areas in increasing productivity, namely, yield potential and realised yield.

“For many years, SDP has been focusing on improving yield potential and we are proud to have achieved this with our ground-breaking research into the oil palm genome to produce what is perhaps the world’s best oil palm seed, the GenomeSelect™.

“But yield potential means nothing if you cannot realise the actual potential of the seeds. This requires the seeds to be grown in the best way and crops to be recovered as efficiently as possible, to be sent to our mills, as fresh as possible.”

Whilst SDP is already using machines to carry out crop evacuation work in its operations, under its accelerated mechanisation programme, several initiatives have been introduced to improve the upkeep of immature and mature fields in various terrains. These include:

1. The ST 101 Geo or the automatic Strip Herbicide Sprayer machine for mature fields, which is ideal for flat or undulating areas. Each machine reduces manpower by 5 workers, and now covers 25 ha per day, compared to 5 ha/day when it was done manually.
2. The Azman Sri Pulai (ASP) Herbicide Strip Sprayer for mature areas, a machine developed in-house. It is ideal for terraces of less than 15-degrees and reduces manpower needs by 3 workers. It has a coverage of 8 Ha a day compared with only 3 Ha/day if done manually. The machine also reduces costs by 63%.
3. The Mechanised Fertiliser Machine (MFM) and Mechanised Fertiliser Terrace Applicator (MTFA) are machines used for fertiliser application in mature areas that are flat, undulating or terraced. It can reduce manpower by 4 workers and has a coverage of 8 ha/day, compared with only 2 ha/day if done manually.
4. The P2P Drone is a large volume capacity Unmanned Aerial Vehicle sprayer that delivers extended hectarage precision spraying of pesticide based on crown tracking, using Artificial Intelligence. It delivers a 70% target labour reduction and covers 8 ha/day, compared to just 3 ha/day when done manually.
5. The Nursery Drone Pest and Disease (P&D) Sprayer has an 88% target labour reduction for Pest & Disease operations at nurseries. The machine increases productivity to 15,000 seedlings a day, compared to only 1,800 a day if done manually.

A key area that is still being studied is the harvesting of oil palm fruits, which requires skilled manual labour. Harvesting can be difficult if palm trees are too tall. SDP’s newly established robotics unit is working with several organisations to find viable solutions.

With more technology companies, institutions and organisations, both local and abroad, that are already or will be working in this space, Mohamad Helmy believes there will be more opportunities for Malaysians to become a part of this exciting transformation and contribute to the future of the Malaysian palm oil industry.

To view SDP’s latest mechanisation video shown during the Oils and Fats International Congress 2022, please click on this link: https://www.youtube.com/watch?v=89vZx7xFnig