Malaysia Pest Analysis

Student: Nur Athina binti Roslan
ID Number: KYSIC2013-0048

Course Name: Introduction to Management
Lecturer: Dr Sam Goundar
Due Date: 19th December 2014
Assignment: Malaysian Business Environment
Word Count: 2361 words

ASSESSMENT SUMMARY
Assignment 01 – Malaysian Business Environment
Tabung Haji Plantations Berhad

BACKGROUND

Tabung Haji Plantations (THP) Berhad is a subsidiary of Tabung Haji, the Malaysian hajj pilgrims fund board. It is an investment holding company whose main business activity is the farming of oil palm in Malaysia. THP was once known as Perbadanan Ladang-Ladang Tabung Haji Sendirian Berhad. Ever since the formation of the corporation in 1972, THP has acquired nearly 110 000 hectares of plantation land. This

The identification of internal and external factors will also be analysed. To not repeat any points, these two analyses have been combined and are shown in the following table.

PEST / SWOT Analysis
PEST/SWOT Strength Weakness Opportunity Threats
Political Palm oil plantation causes the deforestation of rainforest
Economic Production compared to other edible oil is cheaper and more cost efficient Crude palm oil (CPO) price is very dependent on crude oil price volatility Malaysia plans to increase palm oil’s contribution to the country’s Gross Domestic Product (GDP)
Social Palm oil is recognized as one of the healthiest edible oil Rumours of human rights violation and taking advantage of citizens
Technological Production of biofuel from palm oil

1. Production of palm oil is cheaper and more cost efficient compared to other edible oils
Competing with other crops that yield oils and fats such as soy oil, corn oil and groundnut oil, it is a huge advantage that palm oil is cheap. For a resource that can be found in numerous everyday products such as cosmetics, processed food, toiletries, biodiesel and even ice cream, a high demand is almost a

In addition, THP is a member of the Roundtable on Sustainable Palm Oil (RSPO). The company is bound by the Malaysian law whereby sustainable production of palm oil is taken very seriously. This means that no burning is allowed and the usage of chemical fertilizers and pesticides is limited.

RECOMMENDATIONS

1. Commercialise status as founding member of RSPO and business practices
With all the rumours going around, the market for palm oil is truly threatened by what people think is awareness. While it is good to be environmentally aware, people are stereotyping what is happening at a few plantations as what happens at all plantations. Therefore, it is recommended that THP work on assuring the people that the company is applying business practices that are in accordance with the country’s law.

2. Get into the biodiesel production industry
The increase in R&D by MPOB for the production of biodiesel from palm oil has caused the production to increase as well. It is strongly suggested that THP grab the opportunity to expand its business by entering this industry by obtaining the license to use the newfound technology. Not only can it be used as fuel for vehicles, palm biodiesel can also be used as heating fuel and to produce detergent. Ongoing research may be able to reveal more uses for biodiesel in the