Malaysia Floods 2014

Preliminary Damage and Impact Assessment to FGV

Presented by
Group Strategy/R&D Cluster/Upstream Cluster
Date: 29 December 2014

Executive Summary
Disaster Overview

State

No of Flood
Victims as at
29 Dec 2014

Majlis Keselamatan Negara (MKN) has defined disaster as an

incident that occurs unexpectedly, complex in nature, resulting in the
loss of lives and damage to properties and the environment as well
as interfering in the daily activities of the local community.
As of 12pm, 29 December 2014, MKN reported 101,702 people from
Kelantan, Terengganu, Pahang, Johor and Perak have been placed at
flood relief centers.
Summary as per below table from MKN as of 29 Dec 2014:

Districts

Criticality (Last recorded : Danger level), Criticality Level (%)

Kelantan

31,441

Gua Musang, Jeli, Kota Baharu, Kuala

Krai, Machang, Pasir Mas, Pasir
Puteh, Tanah Merah, Tumpat and
Kota Bharu

Tangga Krai Sungai Kelantan (34.11m : 25m), 36%

Jambatan Guillemard (22.63m : 16m), 41%
Tambatan Diraja (6.88m : 5m), 38%
Sungai Golok, Rantau Panjang (10.41m : 9m), 16%

Terengganu

32,736

Kemaman, Dungun, Kuala

Terengganu, Besut and Hulu
Terengganu

Sungai Kemamam (37.6m: 36m), 4.44%

Perak

7,774

Hulu Perak, Kuala Kangsar and Perak

Tengah

Tasik Temengor, Hulu Perak (247.69m)- alert level

Sungai Selama, Selama (14.86m)- alert level

Johor

328

Mersing

n/a

29,423

Kuala Lipis, Kuantan, Muadzam,

Jengka, Termerloh

n/a

Pahang

Source: Bernama and Majlis Keselamatan Negara

Executive Summary
Disaster Timeline Overview
Activity

15

16

17

18

19

20

Dec
21

22

23

24

25

26

27

Timeline
News 1
News 2
News 3
News 4
12/16/14 12/17/14

Date

Timeline

12/24/14

12/26/14

News

15/12/2014

Starting

Consistent heavy rainfall occurs across the entire country

16/12/2014

News 1

Estates in Kuantan, Gua Musang and Kuala Terengganu area show signs of
increased water levels

17/12/2014 till
23/12/2014

News 2

Estates in Jengka, Sahabat Selatan, Mersing, Temerloh Selatan, Muadzam,

Serting and Kuala Lipis region show signs of increase water levels

24/12/2014

News 3

Dangerous level of flood seen in Kuala Lipis and Gua Musang area.
Estates such as Chiku 04, Chiku 08, Aring 06, Aring 08, and Aring 10 road
access were inaccessible because of the flood.
Food and water supply were cut off until today.
Flood victims were forced to evacuate to the nearest rehab center.

26/12/2014

News 4

Flood in Kuantan, Terengganu and Jengka is still at a dangerous level but is

able to withstand up till now.
3

Flood Damage Assessment

Current News

Flood casualties towards the company

Estates involved: 9 estates

Area of estates flooded: 23,730 ha
Number of employees and foreign worker affect by the flood: 6,200 people
Daily harvest is down by 50%
Milling activity is down to only 40% of its full daily capacity

The companys employees and flood victim were given aid in terms of
food and tools.
RM150 per family
RM 50 per foreign workers

Flood Damage Assessment

News Affecting Palm Oil Industry

(Malaysian Insider, 24 December 2014)

Pahang is the largest state in Peninsular
Malaysia and accounts to more than
15% of the countrys total crude palm oil
supply.
Bursa Malaysia had edged up 0.6% of
March contract to RM2,223 (USD 636)
per tonne with price trading at their
highest since November

2210
2190
2170
2150
2130
2110
26/12/2014

24/12/2014

22/12/2014

20/12/2014

18/12/2014

16/12/2014

14/12/2014

12/12/2014

10/12/2014

8/12/2014

6/12/2014

4/12/2014

2/12/2014

2090
30/11/2014

Palm oil hits near 1 month high on

monsoon woes

2230

28/11/2014

(Sun Daily, 24 December 2014)

Rainfall is delaying harvesting of fresh
fruit bunch (FFB) and mill operations in
east coast of Malaysia.
Malaysian palm oil future rose to their
highest as monsoon rain pounded the
production of CPO

One Month MPOB CPO Price

26/11/2014

Palm oil hits near 1-month high due to

monsoon

Palm oil Dec output set to fall

(New Straits Times, 25 December 2014)
Production is set to fall 11% to 1.56 million
tonnes from 1.75 million tonnes in
November.
Output typically declines from November
through February because of low-production
season mainly because of the monsoon
5

Flood Damage Assessment

As at 29 December 2014, the opportunity loss of FGVs FFB
production is estimated to be 11 kMT, only 0.2% of forecasted annual
production
3,556

Estimated loss of FFB (MT)

Estimated Loss of FFB (MT)

Affected hectarage, ha

2,105
1,757

1,724

911
401

Gua
Musang

Kuala Lipis

Kuantan

Muadzam

Temerloh
Selatan

7,407

4,386

3,660

3,593

1,898

369

Temerloh Terengganu
Utara
836

769

367

200

Jengka

Serting

764

417

Flood Damage Assessment

As of 29 December 2014, FGV losses due to the flood is estimated to
be at RM21 million (flood damages and opportunity loss*).
6,521

Estimate Losses (RM 000)

*transportation and
off spec losses
affected by the flood
3,395

3,040

Estates Damage
Machinery cost (repairs)
Road and Infrastructure Damages
Loss in production (supply)*
Dead trees
Aid costs

OER losses
Stop production (mill)*
Pump house damage
Transportation Revenue Losses*
Off Spec CPO

2,361

1,493

1,400
922

Gua
Musang

HQ

Kuala Lipis Kuantan Muadzam

Jengka

577

545

Termerloh Temerloh Terengganu

Selatan
Utara

440

350

260

Trolak

Mersing

Serting

Gua Musang and Kuala Lipis are some of the major areas that were badly affected by
the flood with damages cost at RM6.5 million and RM3 million respectively.
*opportunity loss

Flood Damage Assessment

CIMB Analyst Report and Remarks- 28 December 2014
67%
State
Kelantan
Terengganu
30%

Pahang

28%

27%

Negeri Sembilan

Internal Analysis

CIMB Report
2%

7%

0.22%

4%

4%

39%

0.12%

3%

Table 1: FGV estates that was directly affected by the flood

14%

FGV

Sime
Darby
Kelantan
Terengganu
Pahang

IOI
Johor
Perak
Perlis

KLK

GENP

Kedah
Negeri Sembilan

Figure 1: Plantation companies estates exposure to the various

Malaysian states impacted by the floods (% of total estates)

FGV total estates that were affected is

estimated to be 6.34% compared to CIMB
assumption of 67%
(Internal Analysis, 29 December 2014)
Assessment done by CIMB analyst had stated
that 67% of FGV were exposed to the flood,
although this is based on the total landbank
in the affected states
However, internal analysis shows that the
total percentage of estates affected within
the flood area is far less from what was
assumed.
8

Flood Damage Assessment

Gua Musang

Flood Damage Assessment

Gua Musang

10

Flood Damage Assessment

Kuala Lipis

11

Thank You

12