Ahli ekonomi persoal asas suntikan dana tambahan dalam usaha sama TH-FGV

On October 30, 2019, FGV Holdings disclosed a potential RM234 million loss from a 50:50 joint venture controlling a palm oil plantation in Indonesia, Trurich Resources. Barjoyai Bardai, an economist, emphasized that the Tabung Haji and FGV Holdings, which are government-linked entities, should conduct independent assessments of Trurich Resources' assets, operational performance, and prospects before infusing additional funds into the failing joint venture.

He cautioned that injecting more capital into a business with weak performance may exacerbate losses if the root cause is not addressed. Bardai pointed out that decisions to inject more funds should not be solely based on the significant amount already invested. The Malaysian Financial Services Authority (RCI) reported in a recent report on Tabung Haji that the full value of a RM364.31 million investment in Trurich Resources was recorded after the joint venture became insolvent.

FGV reported a loss of around RM234 million from the 50:50 joint venture, which managed a palm oil plantation in Kalimantan, Indonesia, in its 2019 disclosure. However, Bardai acknowledged that the losses and additional funding reported by FGV might have been intertwined, while the valuation exercise was not necessarily indicative of the absolute amount of cash lost.

In 2019, FGV admitted that its prior assessment of Trurich Resources was too aggressive and failed to consider the poor condition of the field. Bardai argued that both parties should conduct independent assessments and not rely solely on overly optimistic verdicts. He suggested that any additional funding should be accompanied by clear recovery targets, budget limits, and mechanisms to stop funding if the targets are not met.

According to the RCI report, approval for the liquidation of Trurich's subsidiary company was granted in December 2020, with FGV and Maybank leading the negotiations. However, Bardai cautioned that approval for liquidation alone does not guarantee successful recovery, as it depends on various factors including the selling price, outstanding debts, transaction costs, and the final net gain.

He emphasized that the success of recovery also requires a clear, competitive, and harmonious process aligned with the interests of both shareholders. Bardai noted that the broader economic impact of being tied up in a troubled business can hinder new investment opportunities, depending on the organization's cash position, access to financing, and overall financial performance.

He stated that the issue is not just about the amount of money lost, but also about the potential economic opportunities that may be forfeited due to the failure of the investment to generate sufficient returns. For Felda and Bumiputera entrepreneurs, Bardai warned that repeated corporate losses can blur the path for business development, training, and productivity enhancement.

He emphasized that reducing expenses can also impact agricultural manufacturers, contractors, and transport operators, while a slower pace of development can limit new job opportunities. Bardai reiterated that the performance of the institution should ultimately be measured by productivity improvement, revenue growth, business opportunities, and jobs for the intended beneficiaries, not solely by the value of assets.