Felda Global Ventures Holdings Berhad (FGV), through its subsidiary Felda Transport Services Sdn Bhd (FTSSB) is exploring opportunities in the aerospace and aviation logistics industry to ensure continuous growth.
FTSSB, today, signs a Memorandum of Understanding with MARA Liner Sdn Bhd (MLSB), a wholly owned subsidiary of Majlis Amanah Rakyat (MARA).
With this MoU, both FTSSB and MLSB will allow both parties to explore business opportunities in Multimodal Transport Operations (MTO) logistics services, covering domestic and international routes by inland transportation to various locations.
The MoU aims to leverage the supply chain management capabilities of both parties including provision of ancillary support services involving engineering, hospitality, project management and IT system development support.
Last year, FTSSB recorded a total revenue of RM255.1 million of which MTO contributes 37% or RM94.3 million.
In 2014, MARA was awarded by the Federal Government to develop Sultan Abdul Aziz Shah Airport in Subang, Selangor as Original Equipment Manufacturer (OEM) for South East Asia.
Present at the signing ceremony are FELDA Group chairman Tan Sri Mohd Isa Abdul Samad, MARA Director General Datuk Ibrahim Ahmad, FELDA Director General Datuk Hanapi Suhada and FGV Group President & Chief Executive Officer Dato’ Zakaria Arshad.
With Malaysia aspiring to be the preferred gateway to Asia and ASEAN’s logistics hub, Dato’ Zakaria Arshad said it is timely for FTSSB to expand its MTO business and opportunities in aviation and aerospace industrial services sector.
“Working with MARA Group will be one of the best platforms for FGV to expand its high-value business moving forward beyond the agriculture sector.
“This industry offers a huge potential in the creation of new businesses, higher revenue and long term growth.”
Datuk Ibrahim Ahmad said the understanding between the two companies is significant in boosting growth and potential to operate MTO in a more structured, efficient, sistematic manner.
“In-line with the goal to develop highly skilled and quality human capital, this co-operation will offer massive benefits to the people through job opportunities and exposure to international MTO logistics services in handling high value cargo such as aerospace and aviation; and direct business deals with intrnational brand names.”
“This co-operation will also offer opportunities and boost economic activies for local entreprenuers in engineering, hospitality, project management and other support services sector.”