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ASIA MEDIA GROUP Berhad
Annual Report 2016
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INDUSTRY OUTLOOK AND FUTURE PROSPECTS OF OUR GROUP (CONT’D)
III. Overview and outlook of the palm oil industry (cont’d)
•
Emergence of Africa and Middle East as a key consuming region (cont’d)
The popularity of palm oil in the region of Africa stems from the region’s familiarity with oil
palm crops, which are cultivated in countries such as Nigeria, Cote d’Ivoire (Ivory Coast),
Cameroon and Ghana. Palm oil is also the most cost effective vegetable oil, thereby proving
its affordability for the larger segment of middle and lower income population in this region.
•
Increase in use of biodiesel
Depleting crude oil reserves have spurred the use of biodiesel as a source of energy in
various parts of the world. As biodiesel is derived from edible oils and fats, it possesses
several benefits over fossil fuel such as it being renewable, less harmful to the environment
and biodegradable. Thus, many governments have legislated the use of biodiesel in
vehicles, usually in a blend with diesel, to reduce dependence on crude oil as well as
to reduce carbon emissions. The United States of America, member countries of the
European Union, Australia and Brazil as well as countries in Asia including Malaysia,
Indonesia, Philippines and Thailand have introduced legislations regarding biodiesel. These
legislations mandate a minimum percentage of biodiesel to replace diesel or petroleum
for use in automobiles.
Biodiesel reduces the release of harmful emissions such as unburned hydrocarbons, carbon
monoxide and particulate matter into the air and contains almost no amount of sulphur
or aromatics. Furthermore, biodiesel yields a positive energy balance ratio of 4.5 to 1, in
which for every unit of energy required in its production, 4.5 units of biodiesel energy points
are gained. This is due to the fact that plants are efficient carriers of solar energy.
(Source: The Palm Oil Industry in Malaysia and the Global Edible Oils and Fats Market,
2016, Smith Zander International Sdn Bhd)
IV. Prospects and future plans of our Group
Our Group is principally involved in the existing business by delivering information and
entertainment programs, advertisements, community-driven messages and public bulletins in
public transport via our Transit-TV Network System, installed in major city buses serving Klang
Valley and Johor Bharu, as well as luxury long haul express buses serving peninsular.
The Joint Venture and Diversification will result in the diversification of our Group’s core business
to include the oil palm plantation business.
Management Discussion and Analysis
(continued)