KOTA KINABALU: The Sabah government has received a RM30mil dividend payout from Sawit Kinabalu, the state’s investment arm in the palm oil industry.
Sawit Kinabalu paid the sum for the financial year ending Dec 31, 2021, and as an interim dividend for the second quarter of this year.
Chief Minister Datuk Seri Hajiji Noor, who is also Sawit Kinabalu Group chairman, witnessed the presentation of a mock cheque from Sawit Kinabalu Group managing director Datuk Bacho Jansie to State Secretary Datuk Seri Safar Untong at Menara Kinabalu here on Thursday (Sept 1).
Sawit Kinabalu registered a pre-tax profit of RM350mil last year.
Since 1996, the Group had paid dividends totaling RM1.3bil to the state government.
Chairing the Sawit Kinabalu Sdn Bhd and Borneo Samudera Sdn Bhd board of directors meeting later, Hajiji commended Sawit Kinabalu Group for surpassing the profit before tax target by 222% during the first six months of this year.
The Group chalked up a handsome pre-tax profit of RM220.16mil compared with the target of RM99.11mil due to the surge in crude palm oil (CPO) price, which is now at RM6,215 per metric tonne.
Hajiji, however, cautioned the management that the price of CPO in the second half of the year was expected to drop to between RM4,000 and RM4,300 per metric tonne.
“I call upon the management to take proactive actions in addressing the challenge as well as the rising production cost,” he said in a statement.
The Chief Minister also congratulated the management team for winning two awards, namely the Conservation Partner Award from the state Forestry Department and the World Brand Laureate Best Brand Award for Corporate Excellence in Palm Oil 2021-2022 recently.
“Sawit Kinabalu is the first palm oil industry company in Sabah to win the Best Brand Award.
“This shows that Sawit Kinabalu is on the right track and I hope the awards will further motivate you to work harder to ensure Sawit Kinabalu continues to increase productivity and to excel,” Hajiji said.
Also present were Sawit Kinabalu Group deputy chairman Datuk Rubin Balang and Borneo Samudera deputy chairman Khairul Firdaus Datuk Akbar Khan.