KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) has scrapped a proposed partnership with bus company Mara Liner Sdn Bhd to venture into the aviation logistics business.
Felda Transport Services Sdn Bhd, a 51%-owned subsidiary that provides transportation for palm-oil based products, and Mara Liner have agreed to terminate the memorandum of understanding (MoU) signed in May last year, FGV said in a filing with Bursa Malaysia.
The MoU was to express their intention to work together to explore potential business opportunities in logistic services, specifically in the aviation sector. The one-year validity of the MoU was extended for another 12 months in May this year.
No explanation was given for the termination.
The proposed venture was among the first new projects that surfaced after Datuk Zakaria Arshad was appointed FGV chief executive officer on April 1, 2016.
“It is timely for FGV and its related subsidiaries to expand our multimodal transport operations business into the aviation and aerospace sector as Malaysia aspires to be the gateway to Asia, as well as Asean’s logistics hub,” Zakaria had said at the signing of the MoU.
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