PETALING JAYA: Bright Packaging Industry Bhd
has entered into a new joint-venture agreement (JV) with Datai Plantations Sdn Bhd (DPSB) for the purpose of further diversity and increasing its investment in oil palm plantations.
In a filing with Bursa Malaysia, the packaging company said the JV will supercede the previous agreement that was signed on May 5, 2023.
“Bright Packaging is desirous to further invest and diversify its business in the field of oil palm plantations to obtain sustainable future income with the assistance of a third party, and in this case, DPSB, which possesses the necessary knowledge, expertise and experience in the field of oil palm plantations and related business and is able to provide technical, commercial and management expertise in the relevant industry.
“The board believes that the JV will potentially contribute positively to the company’s future earnings.”
Bright Packaging said the JV will be funded entirely from internally generated funds.
Additionally, it said the JV will reduce its reliance on its manufacturing business related to aluminium foil, which is increasingly competitive and subject to volatility of its primary raw material as well as fluctuation in the foreign-exchange rate.
The company said the prospects for the palm oil industry remain optimistic, with the sector likely to benefit from strong demand and stable prices.
“For businesses closely tied to crude palm oil (CPO) prices, 2025 may present a short-term trading opportunity, especially if Indonesia accelerates the full implementation of its biodiesel mandate.
“The period from January to mid-February 2025 is considered a critical window for such companies.”
Citing the Malaysian Palm Oil Board, Bright Packaging noted that CPO prices are expected to remain firm or move higher in 2025, with forecasts ranging from RM4,000 to RM4,350 per tonne as compared to the RM4,200 average per tonne in 2024.
