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ANTICIPATED OR KNOWN RISK

Our logging business has been affected by the state government’s initiatives requiring all industry players to revise the methodology on operation. Production has dropped due to our undertaking in Sustainable Forest Certification. We are fully committed to comply but risk unforeseen delay in certification. To mitigate this risk, we will strive to lower our operating cost with the expected increase in log production from the salvage logging area.

Shortage of worker and the ability to recruit and retain appropriate labour force are our main challenges in our palm oil business. Shortage of workers will disrupt the normal workflows and eventually translate to lower productivity and margins to the Group. Extreme weather caused by global warming is another risk that will impact the productivity of the palm trees. To mitigate this, we will use better water management to ensure our trees get adequate water supply throughout the year.

Political risk in terms of changes in government policy is also a significant factor. Any changes in government policy pertaining to minimum wages, foreign workers levy, foreign workers insurance and others will have substantial impact on the Group’s operating costs. In response, the Group will endeavor to lower our cost of production.

No.1-9, Pusat Suria Permata,
Lorong Upper Lanang 10A,
96000 Sibu, Sarawak, Malaysia.
T. - 255
F. +6084-213 855
inquiry@jayatiasa.net