28 October 2013

Dear Stakeholder

Invitation to Comment on RSPO Re‐certification Assessment of Kulim () Berhad Tereh Palm Oil Mill and Supply Base

Kulim Malaysia Berhad (Kulim), a Malaysian Plantation Company has applied to BSI Group for RSPO Re‐certification of its palm oil production, which has now reached the end of the five year cycle of the RSPO certificate. The re‐certification assessment will be conducted against the Malaysia National Interpretation (MYNI 2010) of the RSPO Principles and Criteria for Sustainable Palm Oil Production and the Supply Chain Standard for CPO Mills November 2011. The assessment will cover legal, environment, economic, workers safety and health, and social aspects as required by RSPO P&C.

Kulim owns and operates Four (4) palm oil mills for processing the crop from its Twenty (20) company owned oil palm estates (19 located in State and 1 located in Pahang State), as well as the fruit that it purchases from Nine (9) independent “Outside” Estates and Twenty Eight (28) FFB Traders. Kulim is providing support to the “Outside” Estates to implement RSPO P&C, Two (2) of which (Wawasan – Tereh Mill Supply Base and Pertubuhan Peladang – Sedenak Mill Supply Base) are considered ready for Certification. Kulim is a member of RSPO and Initial Certification was awarded to Tereh Mill and Company Estates on 23 January 2009.

BSI plans to carry out the Re‐certification Assessment of Kulim (Malaysia) Berhad 29th November to 10th December with Tereh Mill and Estates and Initial Certification Assessment of “Outside” Estate Wawasan Wednesday 4th & Thursday 5th December 2013. The production data presented in the tables below have been provided by the company and will be verified during the assessment.

Palm Oil Mill Location GPS Location Projected Annual Projected Annual Projected Annual Address CPO (tonnage) PK (tonnage) FFB (tonnage) Longitude Latitude Financial Year Financial Year Financial year 2013/14 2013/14 2013/14 Tereh KB 538, 86009 103° 21' 2° 13' 63,687 16,775 293,658 (Processing Capacity: , Johor 5.0004" 3.0648" 60 mt/hour) MALAYSIA

Estate Location Address GPS Location Total Lease Planted Projected Annual Area (ha) Area (ha) FFB (tonnage) Longitude Latitude Financial Year 2013/14 Kulim Estates Tereh Utara TEREH UTARA ESTATE 103o 20' 2o 15' 3,078 2,890 62,455 K.B. 536, 86009 Kluang, 36.0492" 5.2092" Johor

BSI Group Singapore Pte Ltd T: +65 6270 0777 1 Robinson Road F: +65 6270 2777 #15-01, AIA Tower [email protected] Singapore 048542 bsigroup.sg

Estate Location Address GPS Location Total Lease Planted Projected Annual Area (ha) Area (ha) FFB (tonnage) Longitude Latitude Financial Year 2013/14 Tereh Selatan TEREH SELATAN ESTATE 103o 21' 2o 11' 2,729 2,551 57,795 K.B. 537, 86009 Kluang, 8.3772" 38.3784" Johor Selai SELAI ESTATE 103o 23' 2o 6' 1,800 1,624 14,863 K.B. 529, 86009 Kluang, 14.8164" 14.4156" Johor Enggang ENGGANG ESTATE 103o 25' 2o 16' 1,742 1,651 14,675 K.B. 503, 86009 Kluang, 36.5808" 12.1044" Johor Mutiara MUTIARA ESTATE 103o 28' 2o 17' 2,452 2,316 51,500 P.O. Box 24, 86700 52.1328" 16.6164" , Johor Sg Sembrong SG. SEMBRONG ESTATE 103o 27' 2o 18' 1,256 1,187 26,395 P.O.Box 21, 86700 49.4928" 54.8424" Kahang, Johor Sg Tawing SUNGAI TAWING 03o 21' 2o 17' 2,229 2,146 30,324 ESTATE 10.656" 46.6944" K.B. 531, 86009 Kluang, Johor “Outside” Estates* Felda ** Ladang Felda Paloh, 103.36875° 02.24752° 1,289 1,289 30,667 Peti Surat 111, Paloh Kluang, Johor Wawasan Ladang Wawasan, KB 103.37920° 02.23753° 362 362 4,984 510, 81900 Johor Total 16,937 16,016 293,658 * Both “Outside” Estates will be included in the Certificate ** Felda Paloh was certified on 13/06/2012 (SIRIM QAS INTERNATIONAL CERTIFICATE NO. RSPO 012)

BSI is a leading global provider of management systems assessment and certification, with more than 60,000 certified locations and clients in over 100 countries. BSI Standards is the UK’s National Standards Body. BSI Management Systems provides independent, third‐party certification of management systems. BSI has ASEAN Regional Office in Singapore, Kuala Lumpur, Jakarta and Bangkok.

The BSI Audit Team assigned for the assessment of the Kulim properties is as follows: Charlie Ross Lead Assessor (Legal, Environment, Agricultural Practices, OHS, Social); Haeruddin Tahir 29–30 November (Legal, Environment, Agricultural Practices, OHS); Tuan Haji Isman Yusof 1–9 December (Legal, Environment, Agricultural Practices, OHS); Nabila Seth (OHS, Social); Robyn Ross Social Assessor and Dian Ekowati, Facilitator.

In preparation for this process, stakeholders are invited to provide written input to the Assessment by commenting on any environmental or social aspect of the Management Units performance that you consider relevant.

BSI Group Singapore Pte Ltd T: +65 6270 0777 1 Robinson Road F: +65 6270 2777 #15-01, AIA Tower [email protected] Singapore 048542 bsigroup.sg

Topics that you may wish to comment on are as follows:

• Environmental protection • Biodiversity conservation • Opportunities for employment • Company approach to community development • Your relationship with the company • Participation in decision making • Free, prior and informed consent • Suggestions for improvement

Comments received within 30 days from the date of this letter will be considered in the Assessment. Please include the following details in case we may need to contact you for clarification or follow‐up on any issue raised.

NAME: ...... ADDRESS: ...... …………………………………………………………………... EMAIL: ...... PHONE NUMBER: ...... FAX NUMBER: ......

If you wish your comments to be treated confidentially or to remain anonymous, please mark your reply “IN CONFIDENCE”. Please direct your comments to:

Mr Aryo Gustomo OR→ Mr Sallehhuddin Mohd Noh BSI Group Singapore Pte Ltd Kulim (Malaysia) Berhad 1 Robinson Road KB 705 #15‐01, AIA Tower SINGAPORE 048542 MALAYSIA Email: [email protected] Email: [email protected] Fax: +65 62702777 Fax: +60 78631084

Thank you very much for your input.

Yours sincerely

...... Aryo Gustomo for Managing Director BSI Group Singapore Pte Ltd

BSI Group Singapore Pte Ltd T: +65 6270 0777 1 Robinson Road F: +65 6270 2777 #15-01, AIA Tower [email protected] Singapore 048542 bsigroup.sg