Edited by: Sheera Abg Mansor
SIBU: Ta Ann Holdings Bhd (Ta Ann) has opted to remain guarded against the global geopolitical scenario.
Quoting its executive chairman Datuk Amar Abdul Hamed Sepawi Borneo Post says the trade war between China and the US is slowing external demand, and rising borrowing costs which is expected to continue to weigh on the global economy as well as the economy of Malaysia this year.
According to Hamed, strategies to improve the production yield, creative solutions in developing and promoting value-added products in downstream activities would remain the main focus for Ta Ann.
He stated the market strategy is to concentrate on the market which appreciates the value of the hardwood instead of competing directly with softwood given the competitive sawn timber market.
Hamed also said the push by the governments across the world for environmental friendly fuel as alternative sources of renewable energy is being translated into legislated or mandatory use of bio-fuel.
Barring unforeseen circumstances, the group was confident of a satisfactory performance this year, he said, adding that Ta Ann would continue to achieve a balance between providing a reasonable return to shareholders whilst retaining funds for new investment opportunities critical to long term growth.
Source: Borneo Post