Monrovia, Liberia – June 3, 2019: In a first admission of business losses, the world biggest oil palm producer by acreage Sime Darby of Malaysia says its net profit fell by about 70% compared to the first quarter of 2018.
According to the company’s Managing Director Mohd Bakke Salleh, Sime Darby is expected to reach a decision by year’s end on its future operations in the West African country of Liberia. The company has a 63 year concession agreement in the country to develop about 220,000 hectares of land for palm oil and rubber plantations in the administrative districts of Grand Cape Mount, Gbarpolu, Bomi and Bong Counties. Sime Darby says it already farming plantations in Grand Cape Mount,. Bomi and Lofa Counties.
Liberia will need to maintain the company’s investment, jobs and tax revenues to bolster its struggling economy at a critical time when other major investors including Firestone Rubber and the Turkish MNG Gold Mining Company have slashed jobs to cope to slumping global prices for their commodities.
Sime Darby’s Managing Director who did not disclose names, admitted that there have been ”a number of inquiries about our business in Liberia”. There have been speculations in recent months of that Sime Darby was contemplating leaving Liberia because of heavy business losses. There is no word from the Liberian Government on this latest development.
Economic Affairs Correspondent
West African Journal Magazine