The planned initial public offering (IPO) of Malayan state-owned enterprise Felda Global Ventures Holdings (FGVH) will take place this month (28th June). It will be underwritten by Deutsche Bank, JP Morgan and Morgan Stanley; with an expected valuation of around 2.5 billion Euro this will be the second biggest IPO ever, trailing Facebook. A significant detail is that FGVH is controlled by the governing part UMNO, led by Prime Minister Mohd Najib Abdul Razak. The upcoming privatisation might be prompted by a need to generate capital for the upcoming elections.
For the past two months, large parts of the rainforests on Sumatra, Kalimantan and other Indonesian islands have caught fire. Each year, parts of these forests are burnt to the ground to make room for palm oil production. An illegal and completely unacceptable practice. This year, though, the fires have become even more violent than usual as the rainy season has not yet arrived. A gigantic amount of smoke has even reached and affected neighboring countries Malaysia and Singapore, and serious respiratory problems – as well as casualties - among the local population are some of the direct consequences of these forest fires. Paul Wolvekamp of Both ENDS has been closely involved in the problematic issues surrounding the production of palm oil.
Both ENDS and Forest Peoples Program have formally requested the European Parliament, Commission and Council and the EU Commissioner for Trade, Cecilia Malmström, to consult indigenous and local communities impacted by EU trade in palm oil and other agricultural commodities in formal EU policy deliberations on these topics. Why did we decide to do so and what's it all about? Our colleague Michael Rice sheds some light on the matter.