MATANG GROUP is principally involved in investment holding and the management of plantation estates, sale of FFB, and property investment holding, the details of which are as follows:

  • ownership and management of oil palm plantation as well as sale of FFB (“Oil Palm Business”);
  • ownership, operation and management of durian plantation, processing, production and distribution of durian, and any related downstream business activities (“Durian Business”); and
  • investment holding and property investment holding.

The Oil Palm Business and Durian Business are currently undertaken with the plantation estates located in the state of Johor on freehold agricultural land measuring in total 1,150.38 ha or 2,842.64 acres, out of which 1,013.04 ha or 2,503.25 acres made up the oil palm plantations and 118.03 ha or 291.66 acres are durian plantations and the balance 19.31 ha or 47.72 acres are for ancillary structure and amenities. These plantation estates are located in Tangkak and Segamat District for Matang Estate or Segamat Estate and in Batu Pahat District for Yong Peng Estate.

SEGAMAT ESTATE

Oil Palm Plantation
Durian Plantation

YONG PENG ESTATE

Oil Palm Plantation
Durian Plantation

OVERALL MERIT OF
MATANG’S PLANTATION BUSINESS

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Good accessibility

Our plantations estates, both Segamat Estate and Yong Peng Estate are located next to major roads which facilitates transportations of FFB harvested as well as enhanced accessibility for receiving raw materials including access by workers. Our Segamat Estate is located next to the Federal Route 23 which has been upgraded at various sections to dual-carriageway that connects Muar, Tangkak and Segamat.

The good accessibility of Segamat Estate enhances the attractiveness of the estate for recruitment of workers as well as facilitating transportation of FFBs to palm oil mills, both conditions of which offer advantages to Matang for lower operational costs. Inevitably, having roadside frontage for a Segamat Estate enhances the value of the land to Matang. Similarly, our Yong Peng Estate is located close to Federal Route 24 which connects Muar, through Parit Sulong to Yong Peng, the latter of which is the access town to the Southern Route of North-South Expressway of Malaysia.

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Flat and undulating terrain

The terrain of Segamat Estate is for most parts flat to undulating, both of which make up to about 56% of the total plantable areas of 975.39 ha in the estate. A small 6% of the total plantable areas in Segamat Estate is on slope of more than 25°. Uniquely, Segamat Estate is not subject to severe floods that affect many parts of Johor during the monsoon rain season that lasts from November each year to January or February the following year.

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Attractive plantation age profile

Due to the careful implementation of much planned and thought of replanting programme of oil palm trees, Segamat Estate now has a significant concentration of oil palm trees at prime age from 9-14 years old (which covers about 45% of the total plantable areas of 975.39 ha). Oil palm trees of 15-18 years old make up of about 18% of the total plantable areas.

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Independent control and strategic management

While the estate management team involves in day-to-day operation and management of an oil palm estate is undertaken under the supervision of the Estate Manager, important aspects of the strategic management and decision making are undertaken at Head Office. Procurement of raw materials of significant costs/expenses and capital expenditure of high value are often undertaken through tender exercises coordinated by Head Office.

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OIL PALM BUSINESS

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DURIAN BUSINESS

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PROPERTY INVESTMENT HOLDING

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