30 Annual Report 2022 Our Plantation Division is expected to achieve satisfactory results and continue to contribute positively to the Group’s future earnings. We foresee the CPO price to remain well supported in 2023 due to the continued good demand and tight global supply of CPO due to La-Nina wet weather and the latest mandate in Indonesia in terms of increasing biodiesel content from B30 to B35. The current CPO price is trading at approximately RM3,400/MT (net of export levy and duty) in Indonesia which augurs well for the Plantation Division. The Plantation Division which is operating as usual albeit with enhanced biosecurity measures, has taken various initiatives to ensure daily operations are running smoothly including strict enforcement of COVID-19 prevention standard operating procedures (“SOP”), ongoing COVID-19 vaccination for our workers and family members and good estate management practices. The Group will continue to expand on the use of mechanical assisted collection of FFB, the use of our enhanced new Plantation & Mill Management System to track FFB evacuation process from the field to our CPO mill and maximising the utilisation of our CPO mill. This division is expected to sustain the occupancy rate by maintaining an average rental yield of approximately 3% to 4% per annum based on fair values of the properties as at 30 September 2022. The retail activities have since picked up after our country transited into the COVID-19 endemic phase in April 2022 followed by the relaxation of SOP effective from May 2022 onwards. Plantation Hotel and Property Development Artist’s impression of TR2 Residence @ Jalan Tun Razak facilities deck Harvester using powered wheelbarrow to evacuate the FFB from the field Management Discussion & Analysis Report
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