FGV mulls higher dividend payment

JOHOR BARU: Federal Land Development Authority (Felda) chairman Tan Sri Shahrir Abdul Samad is optimistic that the suspension of export taxes on crude palm oil will help spur growth in Felda Global Ventures Holdings Bhd (FGV).

He hoped the better earnings for FGV would translate into higher dividend payments to stakeholders for 2018.

He said the FGV management would consider 7.5 sen dividend payout for this year compared with five sen paid out for financial year 2017.

“If a share was purchased at RM1.60 or RM1.70, I think a five sen dividend payout was not bad at all and we are looking to see a more profitable year in 2018,” he said.

Shahrir said the move to suspend export taxes was good, as it would stimulate the market and increase the crude palm oil price.

“This will help boost the market’s competitiveness and in turn, benefit stakeholders,” he told reporters.

He also dismissed claims that it was an election ploy, adding that a similar move had been done before.

“We have done it (suspend export taxes) before and there was no election held right after that.

“We are bringing FGV back into focus as a business entity, nothing to do with politics but no matter what we do, someone is always going to relate it to elections,” he pointed out.

The Government announced the tax suspension last Friday and traders said the move would make Malaysian palm oil more competitive, especially in price sensitive markets such as India and China.

On whether FGV could return to its former glory of above RM4 per share, Shahrir said it was possible but it was not an aim that could be achieved overnight.