KUCHING: Jaya Tiasa Holdings Bhd
is accelerating its oil palm replanting programme, targeting to cultivate 1,743ha for its financial year ending June 30, 2026 (FY26), says its chief executive officer Datuk Jin Kee Mou.
He said the speeding up of replanting will enhance long-term yield efficiency and optimise the plantation group’s age profile for oil palms.
Jin said, in its financial year ended June 30 (FY25), Jaya Tiasa replanted 593ha with high-yielding disease-resistant clones to ensure improve future crop yields.
“The replanting process is being executed progressively and strategically to mininise production disruptions while also optimising resource allocation. The group maintains a disciplined approach to palm-age profile management and prioritises the best agronomic practices to sustain optimal productivity and operational efficiency to ensure continued competitiveness and sustainability of our planting operations,” he said in the company’s annual report for FY25.
As of June 30, Jaya Tiasa had a total oil palm planted acreage of 67,631ha spread over 10 estates, and almost all of the planted area (67,037ha) was mature.
The group also owns and operates four crude palm oil (CPO) mills.
In FY25, the oil palm segment’s revenue climbed by 14% to RM1.09bil from a year ago, driving pre-tax profit higher also by 14% to RM317.5mil. The oil palm segment contributed over 93% to group revenue of RM1.17bil, which jumped by 15% over FY24.
Year-on-year, the group’s fresh fruit bunch (FFB) production volume dipped by 8% to about 1.06 million tonnes but average selling prices rose by 15% or about RM856 per tonne.
Jaya Tiasa recorded a 15% increase in average CPO selling prices to RM4,332 per tonne but production volume shrank by 3% to 222,710 tonnes.
The average selling price of palm kernel soared by 50% to RM2,998 per tonne but production output declined by 5%.
Jin attributed the oil palm segment’s strong performance to a 16% growth in CPO milling in FY25 but the gains were offset by higher FFB operating costs due to lower production output because of adverse weather conditions, including monsoon flooding, which disrupted harvesting activities in low-lying areas, and dry spells caused by the El Nino weather phenomenon that affected fruit development.
For FY26, Jin said Jaya Tiasa anticipates a strong performance from the oil palm segment if average CPO prices remain firm.
“Milling operations are also expected to to perform satisfactorily, supported by efficient management and resilient production, which are less susceptible to palm oil price fluctuations compared with upstream operations,” he added.
On the group’s traditional timber business, Jin said the segment had showed signs of stablisation, albeit on a moderate scale.
In FY25,the group’s timber segment posted an 11% increase in revenue to RM62.7mil but incurred a lower pre-tax loss of RM38.1mil compared with RM52.3mil in FY24 due to persistent softness in the overall market demand for logs and fair value losses.
The group owns three timber concessions covering 414,362ha in three forest management units.
Jaya Tiasa has total reforestation land covering 120,395ha with total plantable area of 75,622ha.
So far, 50,604ha have been planted, including 4,638ha cultivated in FY25.
Year-on-year, the group’s log production shot up to 99,613 cubic metres compared with 80,469 cubic metres in FY24, which however remains below historical peak levels.
Average export prices increased and Jaya Tiasa sold its logs mainly to India.
The group exited loss-making downstream timber processing operations, including plywood manufacturing, several years ago .
“The group maintains its timber operations to retain our timber licences and ensure future access to timber resources. A complete exit from the sector would incur substantial re-entry costs if market conditions warrant a revival of large-scale logging in the future.
“By sustaining a controlled operational presence, the group has the operational flexibility to remain poised to capitalise on potential recoveries in future global timber markets,” said Jin.
He added that while the current timber market remains soft, the group is cautiously optimistic about a future return in demand as global construction and infrastructure projects regain momentum.
“We will remain selective in our logging operations to priortise cost discipline and long-term asset value preservation. Additionally we will continue in our commitment to sustainable forest management, regulatory compliance and environmental stewardship to reduce carbon emissions while aligning with long-term economic and sustainability goals,” he added.
Apart from its plantation and timber businesses, Jaya Tiasa is venturing into property development with the acquisition of land approved for a mixed development in Sibu town for RM100mil, financed from internally generated funds.
“This strategic move aims to broaden our revenue streams, provide a natural hedge against commodity price fluctuations, particularly the palm oil sector, on the expected growing demand for real estate in Sarawak.
“While oil palm remains our primary business, this venture into property development aligns with our long-term sustainable growth strategy and reflects our intention to pursue stable and recurring revenue opportunities.
“Development plans for property development will be implemented in phases with careful consideration of market demand, regulatory compliance and prudent capital management,” said Jin.
