Fertiliser Importers Set To Drop Prices

FERTILISER importers are expected to drop prices by more than 15 per cent this quarter. This will benefit oil palm plantations as they use up some 3.5 million tonnes or 90 per cent of the country's chemical fertiliser imports.

Plantation Industries and Commodities Minister Datuk Peter Chin said fertiliser prices in the world market, except for potash, have fallen significantly and it is only logical to see these savings passed on to the plantations.

"In the last quarter, they've dropped prices by 15 per cent. They are now calculating the quantum of price drop for this quarter. It's likely to be more," Chin told Business Times after meeting with Agriculture and Agro-based Minister Datuk Mustapa Mohamed and Fertiliser Industry Association of Malaysia (FIAM) in Putrajaya yesterday.

To help reduce the country's fertiliser import bill, the ministry and Bank Negara Malaysia recently approved barter of US$70 million (RM253 million) palm oil for fertiliser with North Korea and Russia.

Last year, oil palm planters paid more than RM6 billion to fertiliser importers for an estimated 3.5 million tonnes at market pricing.

Apart from North Korea and Russia, Chin said, Malaysia wants more barter trade with other fertiliser producing countries like Morocco, Jordan, Syria and Iran.

Since 1992, Malaysia has been bartering palm oil for other commodities via the Palm Oil Credit and Payment Arrangement (POCPA) with Bank Negara as credit guarantor.

FIAM chairman Zainal Matassan said: "Although barter trade is an option that would involve extra steps and procedure, we'll strive to find ways to implement fertiliser purchase via the POCPA. We'll revert to the honourable ministers soon, before the end of this month."

On another note, Malaysian Palm Oil Board had, effective January 1 2009, reduced collection of price stabilisation cess from all oil palm planters to RM2 per tonne.

Asked if the reduction could hamper implementation of the B5 mandate where 5 per cent biodiesel is blended into regular diesel for use in the local market, Chin replied: "No, it will not, because this mandate will be carried out step by step."

Something2Share:

The drop prices of fertilisers is indeed a good news to the plantation companies and the planters.

We look forward for further drop and also reduced price of MOP (Muriate of Potash) in near future.

GRATITUDE IS POWER

When we are thankful for what we have - for the friends we have, and for the things we've got, we attract more good people and good things!

People, who always complain about what they DON'T HAVE, stay stuck. Complainers attract more things to complain about!

It is a law of life. It's hard to explain, but you can observe it around you. We get more of what we dwell upon.

That's why all the spiritual masters have taught the same lesson: 'Start by being thankful. Be happy with what you have now, and more will come your way.'

It's practical advice:
Every time you say a silent 'thank you' you become more peaceful – and more power... Keep Sharing!

Peace of mind rarely comes from getting more stuff. Getting more stuff usually leads to wanting even more stuff! Peace of mind starts with being grateful for what we have right now.

Something2Sahre:

In life, we have so many things to be thankful for. How true it is that we must be thankful for the things we have, such as having a happy family, owning a comfortable house and a family car, living harmoniously among the neighborhood, having friends who care and share good things with us, so on and so forth.

During the last Sunday church service at Charisma Assembly, Segamat, pastor Steven Wong reminded the church members that “Everyday is a miracle” and there are 5 things we should be thankful to God:

Thank God for FORGIVESS
Thank God for REDEMPTION
Thank God for HEALING
Thank God for LOVE and COMPASSION
Thank God for SATISFACTION and RENEWAL

Well, as for me, everyday is not just a miracle but a blessing from God. When we weak up in the morning, isn’t it wonderful that “God forgives our sins, redeems our lives from ruin, heals all our diseases, crowns us with loving, kindness and tender mercies and satisfies our desires with good things so that our youth is renewed like the eagle’s”?

Yes. When we are grateful for what we have right now, there will be peace of mind in us and that is the greatest satisfaction of all. Prais The Lord!

CPO prices to get full La Nina effect by end-May 2009

Crude palm oil (CPO) prices will get the full impact of the rising La Nina weather risks, which are threatening major oilseeds and grain growing areas in the US and South America, by end-May 2009.

La Nina, usually marked by wet weather and abnormal heavy rainfall, was expected to disrupt the 2009 planting season for oilseeds and grains like soybean and corn in the US in March and April, a plantation industry consultant told StarBiz.

He said La Nina could also affect the harvesting season for soybean in Brazil and Argentina from February to April.

“All will depend on the length (time frame) of the La Nina weather pattern in 2009,” the consultant added.

He expects any disruption in planting or harvesting of soybean crops in 2009 would help bolster the currently-weak prices in most agriculture-based commodities, including CPO.

The world encountered a lengthy La Nina phenomenon from 1998 to 2001.

In 2001, it was reported that US farmers planted 1.6% less acreage of soybean and 4.8% less acreage of corn due to the wet weather caused by La Nina.

An analyst with a bank-backed brokerage said that increasing weather volatilities worldwide such as heavy rainfall in South-East Asia and drought in Australia last year led world markets to raise the risk premium for agricultural commodities.

In Malaysia, he said, abnormal heavy rainfall early last year created floods in major oil palm plantation areas like Johor and Pahang, giving a short-term boost in CPO prices.

Meanwhile, plantation stocks were traded higher on Bursa Malaysia yesterday as the CPO price closed above RM1,600 per tonne in line with soybean oil gains on the overnight Chicago Board of Trade.

On Bursa Malaysia Derivatives, the benchmark CPO for March delivery closed RM81 higher at RM1,671 per tonne.

Something2share:

Obviously there will be a greater demand of CPO if there will be less soybean oil due to adverse weather of La Nina affecting soybean crop production and harvest in 2009. Let hope for the rebounce of CPO price as predicted.

Oil palm planters may get cess respite from Govt

I believe my planter friends working abroad will be glad to be updated if they have missed reading the news reported in today thestar online:

The Government is considering a reduction in the Malaysian Palm Oil Board cess payment or even suspend it for a certain period to assist planters in dire straits.

Primary Industries and Commodities Minister Datuk Peter Chin Fah Kui said the Government was willing to look into these options if there was justification that “the cess is truly burdening local planters” given the sharp fall in crude palm oil (CPO) prices.

“I am a reasonable minister. Give me the breakdown on the planters’ respective cost of production and at which CPO price level would these planters hit rock bottom. If necessary, we will audit them,” he told StarBiz in an interview.

Based on annual CPO production at 18 million tonnes and palm kernel production at two million tonnes, the total cess collection is estimated at RM220mil.

Local oil palm planters have been paying about RM11 per tonne in MPOB cess (see table for breakdown).

They also had to pay an additional cess of RM4 per tonne for the Palm Oil Price Stabilisation Fund.

MPOB’s revenue was mainly from cess collection (research and development and licensing enforcement) of RM9 per tonne of palm oil and palm kernel oil produced at the mills and crushers.

Chin, however, said: “To do away with the MPOB cess is like asking us to do away with MPOB, the central body, which takes care of the well-being of the local palm oil industry.”

Citing an example, he said a reduction of 13.3% in MPOB cess provided only about 40 sen savings for every tonne of fresh fruit bunches (FFB) produced.

This would mean the cess of RM11 per tonne of CPO will be reduced to RM9 per tonne while in FFB terms, the cess will be reduced from RM2.20 per tonne to RM1.80 per tonne.

However, Chin said, there was an imposition of a sales tax of 7.5% in Sabah and 5% in Sarawak.
In fact, a reduction of 13.3% in sales tax in Sabah, for example, would provide a higher savings of RM3 for every tonne of FFB produced, he added.

Chin said the Government was looking at various avenues to mitigate the plight of oil palm planters, especially smallholders, due to the weak CPO prices and excess palm oil inventory at 2.3 million tonnes.

“We have counteracted immediately by allocating RM200mil for replanting activities and RM200mil for biofuel initiatives,” he added.

Chin said the Government’s early intervention had stabilised the CPO prices at RM1,500 to RM1,600 per tonne currently.

SARAWAK OIL PALM PLANTERS SEEK RESPITE FROM GOVERNMENT

I believe my planter friends working abroad will be glad to be updated if they have missed reading the news reported in today thestar online:

Sarawak oil palm planters, badly hit by the sharp fall in crude palm oil (CPO) prices, want the Government to give them some breathing space by waiving the windfall profit tax, lowering the cess and sales taxes, and regulating high fertiliser prices.

They have also proposed that the unused portion of the cess collected for the Cooking Oil Subsidy Scheme by the Malaysian Palm Oil Board (MPOB) be refunded directly to Sarawak plantation companies.

A waiver is also proposed for Sarawak plantation companies which are still paying their outstanding cess instalments.

Sarawak planters have paid about RM157mil in cooking oil cess this year.

Sarawak Oil Palm Plantation Owners Association spokesman Paul Wong told StarBiz that Primary Industries and Commodities Minister Datuk Peter Chin Fah Kui had assured the association that its proposals would be studied. The association had a dialogue with the minister yesterday.

“The feedback to our proposals will be made known by January,” said Wong, who is also Sarawak Oil Palms Bhd chief executive officer.

Wong said the minister had also given an indication that Sarawak planters would be allowed to export their CPO tax-free, given the high national CPO stockpile.

About 10 Sarawak-based plantation captains attended the dialogue session, namely Sarawak Oil Palms, Sarawak Plantations Bhd, Solid Group of Companies, WTK Group of Companies, Rimbunan Sawit Bhd, Ta Ann Holdings Bhd, Seatex Development Sdn Bhd, Woodman Group, Rimex Group and KTS Group.

“We can also form a consortium to jointly set up our own refineries if the existing four refiners in Sarawak refuse to abolish the RM40 per tonne discount on our CPO price,” said Ta Ann Holdings managing director Datuk Wong Kuo Hea.

Sarawak Plantation group managing director Mohamad Bolhair Reduan said the Government should use the MPOB cess on research and development to assist Sarawak planters in sustainable management of peat areas as well as cultivating more efficient agriculture practices.

The Sarawak oil palm industry is still at an infancy stage with only about 20% of matured oil palm areas and low yields.

“Given our young plantations, the RM200mil replanting scheme and subsidy by the ministry recently will not benefit Sarawak,” he said.

With the CPO price currently at about RM1,500 per tonne, Wong said many Sarawak planters were incurring substantial losses and cash flow squeeze, given their high cost of production at RM1,800 to RM2,000 per tonne. Planters in the peninsula have a cost of production of about RM1,100 to RM1,200 per tonne.

Be Grateful: Everyday Is A Blessing

Everyday is a blessing, and in each moment there are many things that we can be grateful for. The world opens up to us when we live in a space of gratitude. In essence, gratitude has a snowball effect. When we are appreciative and express that gratitude, the universe glows a bit brighter and showers us with even more blessings.

There is always something to be grateful for, even when life seems hard. When times are tough, whether we are having a bad day or stuck in what may feel like an endless rut, it can be difficult to take the time to feel grateful. Yet, that is when gratitude can be most important. If we can look at our lives, during periods of challenge, and find something to be grateful for, then we can transform our realities in an instant. There are blessings to be found everywhere. When we are focusing on what is negative, our abundance can be easy to miss. Instead, choosing to find what already exists in our lives that we can appreciate can change what we see in our world. We start to notice one blessing, and then another.

When we constantly choose to be grateful, we notice that every breath is a miracle and each smile becomes a gift. We begin to understand that difficulties are also invaluable lessons. The sun is always shining for us when we are grateful, even if it is hidden behind clouds on a rainy day. A simple sandwich becomes a feast, and a trinket is transformed into a treasure. Living in a state of gratitude allows us to spread our abundance because that is the energy that we emanate from our beings. Because the world reflects back to us what we embody, the additional blessings that inevitably flow our way give us even more to be grateful for. The universe wants to shower us with blessings. The more we appreciate life, the more life appreciates and bestows us with more goodness.

Something2Share:

I like it that everyday is a blessing.

For a retiree like me just stopped working at the age of 62, every morning I give thank to God for another day when I wake up and able to go for brisk walking and continue other activities throughout the day.

I am grateful that I am able to learn how to adjust myself to retirement lifestyle.

I am grateful that I can now really relaxing after years of hard work in plantations.

I am grateful that I can now spend more quality time with my family.

I am grateful that I will have more free time for travelling abroad with my wife.

I am grateful that now I can spend more time with my friends in kopitiam or coffee shops.

I am grateful that I can now have more time to do things that I like to do.

I am grateful that now I have time to learn new things that I have not done before.

When I went to see an Urologist last week, he told me that my prostate enlargement was 3 times of its original size. The choice was on me: Do I want to continue medication and keep suffering the problems of urination or to go ahead for surgery to remove the unwanted benign prostate tissue which is causing obstruction to urine flow from my bladder? In fact I had already decided to go ahead with laser surgery to remove the obstructing prostate tissue instantaneously with minimal risk, blood loss and discomfort.

I am grateful that the surgery was carried out smoothly and I was discharged from the hospital the following day.

Boustead: CPO will rebound in first-half 2009

The major owner of the plantation Al-Hadharah REIT (Real Estate Investment Trust) expects palm oil prices to trade between RM2,000 and RM2,200 a tonne.

BOUSTEAD Holdings Bhd believes palm oil prices will bounce back to between RM2,000 and RM2,200 a tonne in the first six months next year, boosted by shipments to China and the government's effort to cut stockpiles.

Prices of the commodity have already fallen 66 per cent from their peak of RM4,486 a tonne in March, to RM1,510 for February delivery, yesterday.

The major owner of the plantation Al-Hadharah REIT is, however, convinced that prices will improve in the first half next year.

"Crude palm oil (CPO) is mainly used for food. We believe the buyers from China will continue to use palm oil because of the price difference - it's now at a US$300 discount to soya oil. That's quite attractive," Boustead group managing director Tan Sri Lodin Wok Kamaruddin said at a press conference in Kuala Lumpur yesterday.He blamed the current weak CPO prices on excess stocks due to high production, as well as the falling crude oil price which has dropped drastically from nearly US$150 (RM545) a barrel not too long ago to below US$45 (RM163) currently.

CPO prices have been tracking that of crude oil because it can be used to produce biofuel.

The government has also announced plans to boost the usage of palm oil, which will help to cut stockpiles, Lodin Wok said.

This includes getting government vehicles to switch to biofuel for power, a plan that will later involve industrial vehicles, he said.

The government has also set aside RM200 million to speed up the replanting of oil palm trees that are more than 25 years old.

Boustead is selling two more estates into the Al-Hadharah REIT, boosting the world's first Islamic plantation property trust to RM805 million.

The REIT, 60.5 per cent held by Boustead after the asset sale, is paying RM188.8 million for both the Malakoff and Bebar estates.

With a low gearing of 15 per cent, Lodin Wok said, the REIT aims to buy more assets to expand its size. A REIT cannot exceed 50 per cent gearing under the Securities Commission's rule.

Something2Share:

One morning I was talking to RS, a plantation owner, as we were doing brisk walking at the golf course in Segamat Country Club. He was puzzled why the drastic drop in CPO price was linked to falling crude oil price. Previously, the rise or fall of CPO price was linked mainly to soya oil price.

This morning as I was talking to Mr. Khor, a tractor dealer, he reminded me that the unusual escalating CPO price was in fact boosted up in the name of BIOFUEL due to the skyrocketing crude oil price. It reached the record high at USD 147.27 a barrel in mid-July 2008.

I think many plantation companies and owners can still be lauging to the bank if the CPO prices will be traded between RM 2,000 - 2,000 per tonne.

By rough calculation, if COP (Cost of Production) is estimated at RM1,500 per tonne of CPO, and the trading price is expected to be traded at RM2,200 per tonne, then the profit margin will be about 47%.

If COP is estimated at RM1,300 per tonne of CPO, and the trading price is expected to be traded at RM2,000 per tonne, the profit margin wii be about 54%.

Perhaps instead of focusing on how, where and when to cut cost, we should look at ways and means to increase oil yield per hectare in order to reduce COP. Any attempt to cut fertilizer input will affect the yield quite adversely 2 years later.

Higher palm oil prices expected in 2009

Global palm oil prices are likely to rise in 2009 as stocks in key exporters Malaysia and Indonesia fall, Hamburg-based oilseeds analysts Oil World said yesterday.

“The palm oil market is torn between the bearish outside developments, especially very weak crude mineral oil, and its own constructive longer-term fundamentals,” it said.

Palm oil prices have fallen by almost 60 per cent from a record high in March after the global economic crisis hit commodity markets.

“We expect appreciating palm oil prices in 2009 due to the prospective reduction in Malaysian and Indonesian palm oil stocks in December/June 2008/09 resulting from a decline in the biological yield cycle, seasonally lower production (and) higher demand for edible palm oil,” it said.

New government rules compelling more vegetable oil to be blended with fossil fuels to reduce pollution is also likely to generate extra demand for palm oil, it said. Indonesia, Malaysia and Colombia are among countries which are compelling more palm oil blending with fossil fuels.

“The current low palm oil prices, relative to other edible oils, will stimulate demand in the near to medium-term,” it said. “The decline in world exports of soy oil will shift demand to palm oil.”

But it warned the global economic crisis made physical palm oil demand difficult to assess. - Reuters

Something2Share:

With the recent sudden drastic drop in CPO price, everyone in the plantation sector in Malaysia and Indonesia has been very panic striken. Cutting cost has been the major issue for reviewing Budget 2009. In view of the high cost of fertilizers, the top management teams have been debating on reducing fertilizer input in 2009. The main concern is how to maintain the cost of production so as there will be still room for making profit. To the employed planters, they are most worried about “hair-cut” on their salaries and bonus since Christmas, 2009 New Year and Chinese New Year are around the corner.

The above news is, indeed, very encouraging and I believe it’s a booster jab for the plantation companies, the plantation owners and the planters. If what is expected (appreciating pal oil prices in 2009) comes true, at least we are able see light in a dark tunnel.

SPECULATION A THREAT TO OIL PALM PLANTERS

This write up by LOONG TSE MIN is downloaded from thestar online (Saturday December 6, 2008) and is of interest to all planters.

Speculation in the crude palm oil (CPO) futures market could pose a threat to the plantation industry under current market conditions.

Interband Group palm oil trader Jim Teh told StarBiz that there was a strong speculative element in CPO prices that shot up from RM1,488 per tonne to about RM1,600 last week on thin volume but had tapered off this week

He said importers from China and India had early this year defaulted on their contract orders partly due to speculation as “CPO prices were pushed up and then suddenly dipped”.

Many of the contracts were locked in at RM3,000 per tonne. When CPO fell to RM2,500 per tonne in August, importers in both countries lapsed on their contracts amounting to about 150,000 tonnes.

At the current CPO price of about RM1,500 per tonne, Teh said a further 300,000 to 400,000 tonnes worth of CPO futures contracts were defaulted in October.

“If prices are high but importers default on the contracts, what is the use to the planters?” Teh asked.

Fertiliser prices had shot up in tandem with the CPO price, he said, adding: “Planters, especially smallholders, will be hit in terms of high cost of fertilisers and left with excess stock.”

Teh estimates CPO to trade between RM1,300 and RM1,450 per tonne for the first half of 2009.

At an average price of RM1,400 per tonne, most plantation companies would still have a profit margin of about 25%, which was good, given the current market conditions, he said.

A chief executive officer with a major plantation group holds a differing view.
“I don’t think there is much speculation as most of the foreign funds have left the (CPO) market.

We can see that CPO prices have not dropped to RM1,200 as predicted even as crude oil falls below US$50 a barrel, which is a sign that CPO price is quite stable,” he said.

He also did not see how higher prices were bad for the industry as it gave better profit for plantation companies.

However, United Malacca Bhd CEO Dr Leong Tat Thim concurred with Interband’s Teh.
“Aggressive fluctuation in CPO prices is not good for the industry as it is bad for both buyers and sellers,” Leong told StarBiz.

“Prices between RM1,600 and RM1,800 per tonne will be good and viable to the industry.”

Leong said he expected the CPO price to hold at its current level and bounce back to RM2,000, by the end of next year.

This was due to measures taken by the Government to reduce the current high CPO stock through replanting subsidy and mandatory use of biofuel in all commercial vehicles, he said.

“There is another favourable factor which is the wide price disparity of US$300 per tonne between CPO and soya bean oil prices.

“This makes palm oil a very attractive alternative,” he added.

Leong said planters were trying to keep costs below RM1,000 per tonne of CPO.

“During these difficult times, I hope the Government at federal and state levels will not consider imposing additional taxes on the palm oil industry.”

GREEN GREEN GRASS OF HOME

I am learning to adapt myself to the retirement lifestyle after returning from Indonesia to Malaysia about a week ago. Being a planter for so many years, I have been so used to walking the fields in the plantations. However, when I stayed back in Tembung office, Medan, I did not even have the time for a morning walk. I had to leave my residence in Jalan Kartini the latest by 0715 WIB to avoid the traffic jam in order to reach office before 0800 WIB.

Now back in Segamat, Johor, I am able to join my friends for brisk walking in early mornings at Segamat country club. We walk across the green and fairway of the golf course for at least 30 minutes while breathing in the fresh air. This reminds me of the song “GREEN GREEN GRASS OF HOME” sung by Tom Jones. I totally agreed with my friends that walking on the soft grasses is much comfortable to our feet and exerts minimal impact to leg injury than walking on the hard and rough surface of tar road. Nevertheless, we have to be early before the golfers tee off and start hitting the golf balls. My friends are the regular walkers and seldom skip walking except on raining days or go out of Segamat town.

As we are all aware, regular morning walk improves our blood circulation and makes our hearts stronger thus it works more efficiently. My friends tell me that by doing regular brisk walking, they are able to keep fit and stay much healthier than others who fail to make brisk walking a habit. It needs to take initiative and commitment to wake up early to go for morning walk regularly and to stick with it for at least 6 month. There must be persistence full of determination, dedication and discipline if we want to make brisk walking a habit. I remember my late father used to go for morning walk very regularly during the good old days in Kuala Lipis, Pahang. He brought along a long walking stick with him to chase away any stray dogs coming near him. Well, since I am now a retired man, I am determined to treat morning walk as my daily routine too.

Oh Yes. I hope you can join me too to start “Chale Chalo” (brisk walking) from today onwards. And I hope you sing along with me and here are the lyrics of “GREEN GREEN GRASS OF HOME”:

The old home town looks the same,
As I step down from the train,
And there to meet me is my mama and my papa.
Down the road I look, and there comes Mary,
Hair of gold and lips like cherries.
It's good to touch the green, green grass of home.

The old house is still standing,
Though the paint is cracked and dry,
And there's the old oak tree that I used to play on.
Down the lane I walk with my sweet Mary,
Hair of gold and lips like cherries.
It's good to touch the green, green grass of home.

Yes, they'll all come to see me,
Arms reaching, smiling sweetly.
It's good to touch the green, green grass of home.

[spoken:]
Then I awake and look around me,
At the four gray walls that surround me,
And I realize that I was only dreaming.
For there's a guard, and there's a sad old padre,
Arm in arm, we'll walk at daybreak.Again,
I'll touch the green, green grass of home.

Yes, they'll all come to see me
In the shade of the old oak tree,
As they lay me 'neath the green, green grass of home.

Click on http://www.youtube.com/watch?v=hSajFnkUxQY to watch and listen to Tom Jones singing 'Green Green Grass of Home' on Youtube.

TALK LESS DO MORE

This is a cigarette’s advertisement on a big signboard across one main road in Medan, on my way to Tembung office. I am not interested on the brand of the cigarette advertised as I am a non-smoker. I was attracted by the phrase it used for advertisement, i.e. “TALK LESS DO MORE”. This reminded me of the English proverb, “ACTION SPEAKS LOUDER THAN WRODS’. Obviously, people who DO MORE are men of action.

It seems to imply that people who are not men of action tend to TALK MORE DO LESS. They are always gossiping, complaining and chit-chatting that they keep on talking, talking and talking, especially when they are on the phone, so much so that more time is spent on talking and there is little time left for doing. These are the people as if they are the empty drums making the most noise.

There are certain professions such as teachers, lecturers, actors, lawyers, motivators, advisors and consultants who are required to TALK MORE DO MORE. Politicians also TALK MORE, especially during election campaign, but not many politicians DO MORE.

I feel sorry for you if you TALK LESS DO LESS. You have nothing to show not to mention the least expectation of you to excel in performance.

There are planters who TALK MORE and also planters who TALK LESS. It’s not important whether they TALK MORE or TALK LESS, they need to WALK MORE DO MORE.

Taking Another Look: Importance of Second Chances

When we meet someone for the first time, we often create a defining image in our minds of who that person is. We may also determine whether or not that someone is worth getting to know. Sometimes when an initial interaction is particularly uncomfortable or challenging, we can decide to close our hearts to this new acquaintance entirely. But being too quick to judge can cause us to lose out on a potentially wonderful, enriching relationship. First impressions don't always give the complete picture, so if you meet someone who leaves you less than impressed; consider giving them a second chance. You might be pleasantly surprised.

Everyone deserves to be given a second chance. We know from personal experience how painful it can feel to be misunderstood or judged. We have good hearts and want them to be seen. We have so much to offer and want others to welcome our gifts. When someone shuts us out before they even know who we are, it can feel frustrating, hurtful, and confusing. By giving others a second chance, we can extend the same courtesy we would ask for ourselves. In this way, we set a precedent for all our relationships: to allow everyone the freedom and safety to simply be human. Whether it is a blind date, the man sitting next to you on the airplane, or your new neighbor, everyone has a full life outside of their interaction with you. They may be preoccupied with a personal or business situation that affects the way they are presenting themselves, or maybe they had a rough day or some bad news. If you give them the room to be who they are, where they are, you will allow yourself to do the same.

When you are considering giving someone a second chance, first check in with your inner knowing. If you find that your intuition is advising you to keep your distance, it is important to honor the guidance you receive. By honoring your intuition when it has wisdom to share, you can feel confident and happy in your decision to give others a second chance.

Something to share:

How true it is that the first time you come across a person you tend to ignore him just as he takes no notice of you. This is a common human nature. But will you take the initiative and friendly approach to start the conversation and connect the relationship with him the second time meeting him?

Few days ago I saw this Indonesian guy in the pool when I went for a swim in Tiara Hotel’s swimming pool. Before I got into the pool, he started swimming away. So there was no chance to say “Hello”. Yesterday I was in the sauna room after the ping pong games with my colleague, SS. The door opened and this guy walked in. I looked at him and he looked at me but there was no eye contact. After a while, I decided to open my mouth and talked to him in Bahasa Indonesia. Once we had started our conversation, I found that he was as friendly as me and he spoke fairly good English. I felt glad that I had made a new friend because of taking the second chance.

One day my HRD personnels came to see me and proposed to promote someone who had sat for the evaluation test and his result was just at the borderline. The reason given was that he was the next in line. They also explained to me that the mill manager was satisfied with his performance and supported the promotion. Accordingly, the not so good result might have been due to his sick condition on the day the test took place. I told them on principle I could not approve such a recommendation but I could consider giving him the second chance. I suggested allowing him to re-sit the test and we would judge again by his new result. He passed with flying color and eventually he got his promotion.

Yes. “Everyone deserves to be given a second chance!” Don’t you agree?

Making Mistakes

We failed because we made mistakes. We made mistakes because we were lack of experiences. Thus, with the right concept, we had learned to gain experiences from the mistakes we had made. We had introspected to find out where go wrong. We needed to analyze the whole process one more time. Through evaluation, then we are able to avoid making the same errors but come out with a better action plan to make it the next time.

Something to Share:

Everybody makes mistakes for no man is born perfect. In actual fact, the more mistakes we make, the better we will become as we have learned through making mistakes. That’s what we call gaining experiences.

Peter F. Drucker, the father of Modern Management, once said,”The better a man is, the more mistakes he will make, for the more things he will try. I would never promote into a top level job a man who was not making mistakes….. He is sure to be mediocre.”

You may make hundreds of mistakes but each mistake made must not be the same as the previous mistake. That’s what we call experimenting.

A positive thinking person needs to do thing right the first time or at least he makes an attempt to do so. If not, he must learn the lesson and does it right the second time. Something is not right if a person keeps doing wrong and repeating the same mistake!

I used to tell my subordinates that there are 3 types of managers in plantations.

1st type – he has not learned from his own mistakes. (Gaining no experience thus chance of demotion or being sacked is great.)

2nd type – he has learned from his own mistakes. (Gaining limited experiences thus chance of promotion is slim.)

3rd type – he has learned from his own mistakes and also from other people’s mistakes. (Gaining more experiences thus chance of promotion is great.)

Higher Cost Of Production: A Great Concern To All Planters

PETALING JAYA: The sharp drop in crude palm oil (CPO) prices, rising cost of raw materials and burdensome taxes have resulted in the cost of production (COP) escalating among local plantation players, hurting smaller and newer plantation companies, especially those from Sarawak.

Planters claim that the current COP had surged, on average, RM1,200 to RM1,700 per tonne now. The COP of more efficient planters jumped at least 50% to RM1,200 per tonne currently from RM600 to RM650 in the past five years. The COP at the less efficient planters, as well as new planters, which meant younger palm trees with lower yields, shot up 87.5% to above RM1,500 per tonne from RM800 earlier.

“Just imagine with a COP above RM1,500 at the current CPO price of RM1,600 to RM1,700 per tonne, many medium to small-time planters will be facing difficulties in making (decent) margins,” said Malaysian Estate Owners’ Association president Boon Weng Siew.

Analysts have estimated that the COP among Sarawak oil palm players would be the highest nationwide at RM1,700 to RM2,000 per tonne.

“At current CPO price of RM1,700, how are Sarawak players going to break even or service their high borrowings at the banks and pay the windfall tax?” Boon asked.

He said the COP situation has changed dramatically, especially the price of fertilisers. The price of fertilizers had gone up by almost three folds to RM4,000 per tonne from RM1,300 to RM1,400 per tonne over the past three years.

The COP of efficient planters like IOI Corp Bhd and United Plantations Bhd is estimated to be in the range of RM1,100 to RM1,200 per tonne “at best,” according to Boon. Analysts have projected the two companies’ yield at 25 to 28 tonnes per ha per year, which was higher than the national industry average of 20 tonnes.

Plantation giant Sime Darby Bhd is said to have an average COP of about RM1,100 per tonne.

Plantation analysts projected the COP for medium-sized planters like IJM Plantations Bhd, Tradewinds Plantation Bhd and Asiatic Development Bhd at RM1,300 to RM1,500 per tonne.

Of late, many oil palm planters nationwide are struggling to keep their escalating COP at bay while grappling with the current decline in crude palm oil (CPO) prices.

They also have to contend with taxes deemed unfair such as the windfall tax and the cess imposed by the Malaysian Palm Oil Board (MPOB), as well as the high cost of fertilizers, chemicals and fuels.

The CPO price trend in November and December would be critical to determine the actual margin erosion among local plantation companies, an analyst with a bank-backed brokerage said. But he noted that the average CPO price at RM3,000 per tonne so far this year was still higher than the 2007 average at RM2,600 per tonne.

“I strongly believe that major oil palm plantation companies can still make good profits for 2008, given the higher CPO average this year and many have locked in their CPO selling price at RM3,000 per tonne in the previous months,” the analyst said.

Boon said many Sarawak-based oil palm plantation players, as new entrants with poor FFB yields, would be hit harder this year, given the bearish CPO price, high COP and the various taxes imposed on them such as the windfall tax.

Last week, seven major Sarawak oil palm companies appealed to the Government to waive the windfall tax or raise the CPO threshold price to RM3,000 per tonne from RM2,000 for calculating the windfall tax.

The Government has imposed a windfall tax on CPO sales at above RM2,000 per tonne, with a 15% tax applicable to plantations in mainland Malaysia, and a 7.5% tax for those in east Malaysia.

Ta Ann Holdings Bhd, a giant timber group with heavy investments in oil palm plantations, is worried. Managing director Datuk Wong Kuo Hea said: “Seasoned Peninsular Malaysia and Sabah planters have enough hectarage of profitable harvesting area to be financially self dependent. Sarawak, as a late entrant, has the lowest area planted with only 20% that can contribute to profit. We are also not financially self-sufficient in our operation and still require huge injection of funds into our new plantations.”

Analysts have projected that many Sarawak planters would continue to make losses from the first to fifth year of harvesting but would start to make profit only in year six if the CPO price was at RM1,700 per tonne.

Top listed Sarawak-based planters include Ta Ann, Sarawak Plantations Bhd, Rimbunan Sawit Bhd, Sarawak Oil Palm Bhd and WTK Holdings Bhd

Close Friends

When we are close friends with someone, we intuitively know when they need a hug, a helping hand, or a sympathetic ear. Likewise, when we are going through bleak periods in our lives, we count on friends to support us through loss, illness, and other setbacks, both big and small. And while part of being a good friend means being there when the other person needs us, it is just as important to be there for our friends so we can share in their joyous celebrations and triumphs.

After all, who else would our friends want to celebrate their promotions, graduations, marriages, and good news with than their loved ones and good friends? Yet depending on what is happening in our lives, it can sometimes be difficult to be there for our friends during the good times. We can become so busy with our own lives that we forget to make time. Or, we may be so focused on our own problems that we may not feel like celebrating with our friends. We may even take their joyful moments for granted, assuming that as long as we’re there for our friends during the bad times that we are doing our jobs. Yet part of being a true friend means also being there during the good times. Success and happiness can feel empty without someone to share them with, and who better to join in our victory dances than our good friends.

Taking the time from our busy lives to honor our friends’ happy moments is a wonderful way to show them that they matter. And in many ways, by wanting you around during their happy occasions, your friends are also honoring you. After all, it is the people we cherish that we want around us to sing at our birthdays, visit our newborn babies, and pop open that bottle of champagne with when we reach a milestone moment. The next time a friend wants you to be there to celebrate with them, remember to feel honored that they thought of asking you. Together, you can celebrate their happiness and your rich friendship.

Something to share:

Tan Jing Ming, my old pal, wrote his comment in my other blog (I Hope You Sing – You’ve Got A Friend): “Close friends are usually childhood friends where we have been friends for many years during our younger days and shared a lot fun together.” Yes. Close friends are our intimate friends. They are also our lifelong friends since childhood. We used to spend most of the time together after school; having fun together in various outdoor games and activities. Thus our relationship got closer day by day as we grew up in our hometown. But sad to say that only few in number remained keeping in touch as we have separated from each other and settled down in different places. The relationship somehow seems to be drifted apart as time goes by.

On the other hand, we do get close to some of our colleagues in our workplace and later become intimate friends. But most of them remain as casual friends. Our other casual friends also include our neighbors, our club members, our church members, parents of our children, friends of our colleagues and co-workers, and people we used to come across every now and then in our everyday lives. These are new and old acquaintances that we bump into and whenever we come across each other we used to nod our heads and say “Hello” without close fellowship. So the relationship remains casual.

There is no excuse for not having time for our friends who are staying in the same town or city. There is also no reason why we can’t meet up a friend when he happens to be in town. The Chinese saying puts it very clearly, “Is it not a joy to have friends come from afar?” 有朋友自远方来，不亦乐呼？(You Peng You Zi Yen Fang Lai, Bu Yi Le Hu) No mater how busy we are, we must always be ready to give our good friends our time. Yes. It will be a joyful moment to meet up and spend time with friends coming from other places. Our time is not only the precious gift that we can give, but also the top priority that we should make ourselves available for friends. When we are invited by our friends to attend their special functions, I am sure our presence will be much felt, honored and greatly appreciated by them.

I feel bad when I couldn’t attend the wedding of Lim Keng Hian’s son in Kuala Lumpur in May 2008 as I was told all of a sudden to make a trip to Acheh on the wedding date. Actually I felt honored of his invitation and I really wanted to share the happy moments with him and his family. Moreover, I was expecting to meet some of our old friends and ex-colleagues whom we had not met for quite a number of years at the wedding dinner. I am sure they were invited too.

As I plan to retire soon, I think I will not have any more excuses but the time to attend any invitation of my friends in near future. I will be a much happier person from now on to share the joyfulness of my close friends who have added richness to my life.

Wisdom & Decision Making

WHERE CAN WE FIND WISDOM?

Who among us does not look back in regret over a past decision? Sometimes we had inadequate information to make the right judgment. But often we simply lacked the necessary wisdom to make the right choice at the right time.

- THE NIV QUIET TIME BIBLE (Ecclesiastes 7/Pg 791)

Something to share:

Wisdom comes with experience, and experience come with age. God says, “Wisdom is supreme; therefore get wisdom,” and “Blessed is the man who finds wisdom, the man who gains understanding.” (Proverbs 4:7a & 3:13) With adequate experience, you will have the wisdom to make the right decision at the right time to gain success. But if you make the right decision at the wrong timing, it’s unacceptable. Making a wrong decision is already a mistake but if at the wrong time, then it’s a disaster. As a consequence, our reputation or position could be at stake.

It’s essential to make analysis well before making a decision. Always gather adequate information to do a thorough cost- and -benefit analysis before making decision. Don’t be in a hurry to make decision if you are not sure of your perception and situation. However, this doesn’t mean that you can become indecisive by adopting the so-called “wait and see” attitude. The “keep delaying” attitude is another form of your indecisiveness. It’s better to make a decision than not making decision at all. However, any decision made should be an effective one. Then it’s a right decision.

Why do people look back and regret over a past decision? It’s alright to look back and learn from past mistake but it’s just a waste of time if you keep regretting over it. Remember that what had been done cannot be undone. If you think you had made a wrong decision in the past, then you should look forward to spend time on gathering adequate information to make a right decision today so that you won’t regret over it later on.

Our life journey is a process of decision making. As a leader, you must realize the power of decision making. Timing is of paramount important. Thus, decision making must not long past its time and purpose. You are solely responsible for making a decision and don’t find a scapegoat to blame for the wrong decision made. You must learn from the past mistakes once you realize that a wrong decision had been made. When you are determined not to repeat the same mistakes, such determination will give you the power to make a right decision but make it at the right time. Once a decision has been made, then it’s time to act immediately. Any delayed action is undesirable because circumstances may change rapidly. Therefore, to be really successful, you have to make the right decision at the right time and followed by fast action with total commitment.

Mind Your Own Business?

One day, a little mouse living on a farm, spied the farmer and his wife opening a package. He was aghast to discover that the package contained, not food, but a mouse trap. The mouse ran to the farmyard warning everyone. "There is a mouse trap in the house; there is a mouse trap in the house!"

The chicken raises his head and exclaimed. "Mr. Mouse, I can tell you this trap is a grave concern to you, but it has no consequence to me and I cannot be bothered with it."

The mouse turned to the pig. "I am so very sorry Mr. Mouse, but the trap is no concern of mine either."

The mouse then turned to the bull. "Sounds like you have a problem Mr. Mouse, but not one that concerns me."

The mouse returned to the house dejected that no one would help him or was concerned about his dilemma. He knew he had to face the trap on his own. That night the sound of a trap catching its prey was heard throughout the house.

The farmer's wife rushed to see what was caught. In the darkness she could see that it was a venomous snake whose tail the trap had caught. The snake bit the farmer's wife. The wife caught a bad fever and the farmer knew the best way to treat a fever was with chicken soup. He took his hatchet to the farmyard to get the soup's main ingredient.

The wife got sicker, and friends visited her round the clock. The farmer had to feed them, so he butchered the pig. The farmer's wife got worse and died. So many friends and family came to her funeral that the farmer had to slaughter the bull to feed them all.

So the next time we hear that one of our team-mates is facing a problem and think it does not concern or affect us, let us remember this:

When anyone of our team members is in trouble, we are all at risk.

Something to share:

Mind your own business? That’s too bad and it’s definitely a wrong attitude. You just can’t mind your own business when your friend or your team member is in trouble.

You will get “slaughtered” too in the end if you refused to mind the business right from the beginning. If you are not concerned and refuse to help, thinking that it’s none of your business to intervene and you can get away with it, then you are wrong! Always remember that the fire in your neighbour’s house may spread to your house in the same row. That’s the moral of the story.

Well, in the context of teamwork, it’s no more a matter of whether it’s your business (your problem) or my business (my problem) but rather it’s our business (our problem). Whenever a team member gets into trouble (having problem), we have to show our concern and start minding each other’s business (solving the problem collectively). Every team member will have to accept each other and offer help when needed. No matter what the differences, all team members must stay beside each other and support each other. We will either swim or die with our team members in the river of trouble, but there is always a WAY OUT when we stick together.

That’s the true spirit of teamwork!

INFLUENTIAL FRIENDS

Life in a foreign country can be difficult. There are new foods, unexpected customs, new ways of speaking or even a new language, different ways of dressing and much more. Something that helps a great deal in such a situation is a friend from the new culture who can help you make the adjustment and introduce around.

- The NIV Quiet Time Bible (Pg 526)

Sharing experiences:

A Chinese proverb says, 在家靠父母，岀門靠朋友 (zai jia kao fu mu, chu men kao peng you) It means: “It is your parents that you can rely on at home, but it is your friends that you can count on when out in the society.”

How true it is that when we come to a new country to work as an expatriate, surely a local friend who is quite influential in the local society is of great help to show us around the places where to eat and where to shop; what rules and what laws and orders we should observe and what things we should try to avoid. In fact, I feel that the sooner the better for us to get acquainted with more local friends but must be helpful, trustworthy and reliable. Better still if we have some old friends who came before us to guide us with useful tips and to share their experiences with us. Then even though we may be naïve and fresh to the new country, we won’t have to make the wrong move and get into unnecessary troubles.

There are many Malaysian planters working in various places in different provinces in Indonesia, from Sumatra to Kalimantan, and now some even in Sulawesi, Papua and Irian Jaya. I think most of us have gone through the language shock when we find out that the Bahasa Malaysia we speak at home is so much different from Bahasa Indonesia. I believe learning the cross-cultural knowledge and customs in Indonesia is very essential for any expatriate to maintain good and harmony working relationships with the local staff and workers. We certainly need our Indonesian friends and the old timers here to help us make the adjustment and quicken our adaptability in the new working environments here.

In another Chinese proverb, it is known as 入乡随俗 (rù xiāng suí sú ) :“Follow the local custom when you go to a foreign place” or “In Rome do as the Romans do.” As expatriates working abroad, we need our local friends to point out to us that it is in the best interest to learn how to be tolerant and observe the culture of the home country with respect and with some degree of sensibility. Undoubtedly, it takes time and effort to develop cross-culture communication when we first come into interacting with local managers, executives, colleagues and co-workers, bearing in mind that the most effective communication should be two-way. We need to learn from our local friends how to value and enjoy our differences in backgrounds, races, religions, languages, tradition, customs and culture, and then we are able to focus on what we have in common in the context of teamwork and good management practices.

Poetry In Motion - Moving Your Body

Our bodies love movement. When we stretch or dance, our bodies adjust, realign and start to become fluid with the rhythm of life. Our mood lifts and we feel more connected with the world around us. If you are feeling stuck, ready to release old energy or eager to feel more alive, try moving your body. By giving your muscles a chance to do what they were created for, you may find that all areas of your body and your life benefit as well.

Many times we can be so busy that we forget moving our body is even an option. Some of us remain seated at our computer for hours every day or rush from task to task with robotic precision. When we are caught up in crossing items off our to-do lists, we tend to neglect all the opportunities there are to enjoy our bodies in the process of living. If this is true for you, begin looking for opportunities to move. You might try dancing or moving about freely as you clean your home, tend your garden or care for your children. If you are able to devote a set amount of time to self-care, practices such as yoga, dance, tai chi and walking are all great ways to keep your body in motion.

Imagine how freeing it would feel to trust your body's movements completely; knowing it has a perfect strength and rhythm of its own. See if you can sense your bones providing graceful support, your muscles and tendons expanding and contracting in just the right measure, your lungs changing pace to fill deeply with fresh air. Movement is a vital celebration of life. It is a way to proclaim your own existence and relish in the joy of being alive. Today, and into the future, give yourself the gift of your body in motion.

Something to share:

How lucky we are working as planters that our job practically requires us to walk the fields. Planters are paid to walk everyday. That was the remarks of a senior planter to me in 1985 when I was transferred to Makassar Estate, Keratong, Pahang, in 1985. He was the Manager of Merchong Estate and we were neighbors.

In fact the basic work’s ethics for planters is none other than walking in the fields. No wonder someone had commented, “THE BEST PLANTATION PRACTICE IS THE PLANTER’S BOOTS AND NOTHING BEATS WALKING THROUGH THE FIELDS”

By the way, walking is an excellent exercise. It is a gentle, low-impact and safe exercise; just moving our bodies in motion as we swing our hands. But when planters walk in the fields, they also turn their heads left and right as they are trained to be observant and sharp in vision.

The normal advice from our doctors is to take a minimum of 30 minutes brisk walking for at least five days a week. For planters, walking in the fields for hours is not a problem. Don’t be surprised that there are still many senior planters way pass the age of 60 and are still walking in plantations all over the world. Well, thank God that it’s just because of their daily walking life that has been keeping them in good health.

Swimming is also another great exercise to keep our bodies in motion, beside golfing, walking, dancing, yoga and tai chi.

I would like to suggest to you to put on your MP3 or walkman and listen to Johnny Tillotson singing “Poetry In Motion” while you are brisk walking. The song’s lyrics may lighten you to swing and move your whole body in motion.

When I see my baby

What do I see?

Poetry

Poetry in motion...

How nice !!!

Broken Connection?

Something happened in the past and it wasn't pleasant. Heavy words were exchanged, a friendship broke up, and we lost contact with people we are now missing. Broken connections are a tragic fact of our fast-moving life. But whatever the reason for the breakup, these connections can be repaired. Maybe not all of them, but we should notresign; we should give it a try. Don't forget that time is a healer. And modern technology makes it easier than ever for us to reconnect.

“Keep your friendships in repair.” - Ralph Waldo Emerson

“Don't be dismayed at good-byes. A farewell is necessary before you can meet again. And meeting again, after moments or lifetimes, is certain for those who are friends.”- Richard Bach

A friendly e-mail that communicates that you would like to reconnect is just one idea. Or you could send an unexpected birthday card to the other party. Or depending on the situation, you could even make a phone call addressing the issue in positive, conciliatory words, or use friends in common to convey a message. I am sure you can think of many other ways, once you've made the decision to try. But what if it doesn't work? Then you can pat yourself on the back and be proud that you tried. And then just let go.

Wouldn't it be nice to reconnect with someone? Have the courage to try.

Something to share:

As illustrated in the Chinese Proverb: 海内存知已，天涯若比邻 (hai nei cun zhi ji, tianya ruo bi lin). The world is but a little place, after all.

A broke up 友情(you qing) friendship does not mean that your friend had become your enemy and that the friendship between you and him or her had been totally ruined. Whatever reasons that caused the break up; don’t you think it’s time to forgive and forget and to reconcile the broken relationship?

You may feel that it’s easier to forgive than to forget. You may be ready to forgive someone who had hurt you deeply, but somehow you still have a hard time trusting that person again. Why? What if that someone is having the same feeling as yours?

Make an attempt to meet up and reconnect again. Make up your mind to forgive and forget. Let be friends again. The world is but a little place, after all.