MUMBAI, June 7 2012 (Bernama) -- The listing of Felda Global Ventures Holdings Bhd is a remarkable success story and Malaysian Prime Minister, Datuk Seri Najib Tun Razak, should be congratulated for his tenacity and determination in driving it, says Godrej International Ltd's director, Dorab Mistry.
"Felda has done in 20-30 years what the colonials took 200 years to do," he said at the sideline of the Malaysia-India Palm Trade Fair & Seminar 2012 here, Thursday.
Felda is a remarkable success story not only in terms of agriculture, but the rural empowerment and prosperity it has brought about, he said.
"It is time the success story is listed so that others can participate, especially the planters."
Dorab said the listing of Felda would also put Malaysia in a position to respond to Indonesia's crude palm oil export tax regime.
"Once the Felda IPO is out of the way and warmly received by the Malaysian stock exchanges, I think Malaysia will also be in a position to respond to Indonesia's export tax regime."
Currently, Indonesia charges a 19.5 per cent export duty on crude palm oil, while Malaysia's export duty is 30 per cent after a duty free limit of 3.6 million tonnes, putting Malaysia at a disadvantaged position.
Dorab said Felda's share price would be strong amid declining crude palm oil production as lower production usually pushes up CPO price.
With reduced production, the shares should be welcomed with stronger price when they list, he said.
Earlier, Dorab said Malaysia's cumulative production of crude palm oil is expected to be in a deficit of 900,000 tonnes between January and July this year compared with the same period last year.
For the first five months of this year, the cumulative deficit was almost 500,000 tonnes.