A new Malaysian global champion is born

Press Release

Kuala Lumpur, 28 November 2007 – Sime Darby Berhad was today launched as Malaysia’s newest diversified multinational amidst expectations that it would carve a name as a global champion in plantations, property and sustainable development.

Since the merger of Sime Darby Berhad, Kumpulan Guthrie and Golden Hope Plantations was announced last year, there has been roiling speculation on the name the merged entity would take.

Prime Minister Datuk Seri Abdullah Ahmad Badawi answered that question when he unveiled the multinational’s new logo and corporate brand at the launch ceremony at the Sime Darby Convention Centre here.

Developing Sustainable Futures will be Sime Darby’s guiding principle in how it approaches all its core businesses, namely plantations, property, energy and utilities; motor and industrial equipment.

This new corporate brand is reflected in Sime Darby's new logo with a warm orange light falling onto a shield and a friendlier typographic treatment.

In his speech, the Prime Minister said that he was confident that the merged entity would make its mark on the global stage, noting that it was starting from a position of strength. For example, Sime Darby would be the largest-listed company on Bursa Malaysia, with a market capitalization of more than RM50 billion.

The diversified multinational will also be the world’s leading oil palm plantations group with some 543,000 hectares; the number one developer of residential and commercial communities in Malaysia; the leading dealer for branded industrial equipment in Malaysia and other Asian markets.

In addition, it would also have a majority stake in Bakun dam and the undersea cable transmission, giving its ambitions in the power and utilities sector a major boost.

The multinational also has operations in over 20 countries including Australia, China / Hong Kong, Singapore, Indonesia, New Zealand and Thailand.

More than 1,000 guests and employees of Sime Darby attended the launch. Among the guests were ministers, diplomats, politicians and corporate captains.

Delivering his address, Tun Musa Hitam, chairman of Sime Darby, said that the multinational was ready to uphold the name of Malaysia on the world stage. “We are making giant steps today, foraging into overseas markets from tapping the industrial equipment industries in Australia into investing for the future in China,” he added.

The continuing boom in the mining sector in Australia has boosted the performance of the industrial equipment sector. Sime Darby has also invested in the utilities sector in China and is bullish about prospects for its industrial equipment business and motor sector in China.

Tun Musa also had a message for shareholders in Malaysia and around the world.

“We will continue to create value for our shareholders by realising significant merger synergies and by accelerating our growth. We believe that RM400 million to RM500 million in annual merger synergies will be fully realised over the next three years,” he said. In addition, Tun Musa noted that the multinational hoped to grow by more than 10 per cent every year.

In his speech, the Sime Darby chairman also touched on the need for the multinational to link sustainability to long term viability. “We believe that we cannot succeed or be truly successful without exercising our responsibility”.

“We firmly believe that we will be able to deliver not only steady growth and returns but also accountability to people and places to whom and where we owe our existence,” said Tun Musa.