Felda Global Ventures announces VSS, 15% cut in allowances

PETALING JAYA: Felda Global Ventures Holdings Bhd last Friday announced a Voluntary Separation Scheme (VSS), which extends to 236 senior managers, and a 15% cut in allowances for those who stay, as part of its manpower optimisation and frugal cost management exercise.
“This initiative has to begin from the top and it is a signal that we are making tough decisions in order to enhance the confidence of our shareholders and stakeholders,” said group president and CEO Datuk Zakaria Arshad, who is also taking the allowance cut, in a statement. The group expects a 15% take-up of the VSS.
Zakaria, however, clarified that there is no change in the current management structure, citing that S. Palaniappan, who has almost 40 years of experience in the plantation and research and development (R&D) industry will remain as COO of plantation sector in charge of palm upstream, palm downstream and R&D activities while Datuk Khairil Anuar Aziz is COO of the sugar and logistics and others sector, with an added responsibility of overseeing the sugar sector effective January 2018.
The initiatives are in line with FGV’s strategic intent to deliver sustainable performance in the face of a challenging industry and to improve the operational and financial performance of FGV’s core business, the company said.