PPB made takeover offers for Federal Flour Mills Berhad (“FFM”), which is now known as FFM Berhad, and Rasa Sayang Beach Hotels (Pg) Berhad (“RSBH”), and FFM and RSBH became 50.86% and 95.13% (subsequently increased to 100%) subsidiaries of PPB, respectively. The takeover of FFM enabled PPB to diversify into flour and animal feed milling, edible oils processing and commodities trading. FFM has since diversified further into livestock farming as a synergistic progression from wheat flour milling and subsequently to consumer products distribution, further food processing and industrial bakery.
PPB and the Sabah Land Development Board established Sapi Plantations Sdn Bhd to undertake a fully integrated oil palm project over 14,200 hectares near Sandakan, Sabah. The Sapi Plantations project marked the Group’s entry into Sabah. The following year, PPB established Reka Halus Sdn Bhd, a 70:30 joint venture with Ladang Sabah Sdn Bhd to develop 5,400 hectares of oil palm estate near Sapi. This marked another step towards oil palm cultivation becoming a core business of the PPB Group.
Recognising the potential of the entertainment industry, PPB entered into a joint venture with Golden Harvest (International) Ltd of Hong Kong to establish Golden Communications (M) Sdn Bhd (“GCM”), now known as Golden Screen Cinemas Sdn Bhd (“GSC”), to operate a chain of cinemas leased mainly from SBM.