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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)
IV. Prospects and future plans of our Group (cont’d)
As a result of these EPPs, Malaysia expects to witness growth in total planted area, thereby
providing impetus for the nation to achieve greater export revenue resulting from higher FFB
yields and increased production of CPO as well as refined palm products. Malaysia’s total planted
area grew from 3.4 million Ha in 2000 to 5.4 million Ha in 2014 at a CAGR of 3.4%, whereby
mature planted area increased from 2.9 million Ha to 4.7 million Ha during the said years at
a CAGR of 3.4%. The growth in mature planted area over this period likewise influenced FFB
growth which also registered a CAGR of 3.7% between 2000 and 2014. CPO production also
registered
positive growth from 10.8 million MT in 2000 to 19.7 million MT in 2014 at a CAGR
of 4.4%.
With the growing demand for edible oils and fats globally, especially for palm-based oils and
fats, Asia Media Group Berhad’s planned expansion into oil palm plantation appears to be a
justified growth strategy for the Company. Such an expansion shall be made possible as the
strong market drivers are expected to provide long term sustainability to the oil palm industry.
Taking into account of the growth prospects of the DOOH transit media industry and the current
efforts undertaken by our Group on palm oil venture, our Board is of the view that the prospects
of our Group are expected to be positive in the future.
Management Discussion and Analysis
(continued)