Musim Mas
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Date Progress
April 2020 09 April 2020:

Chain Reaction Research (CRR) released a report titled, “The Chain: Tabung Haji Plantations to Develop New Oil Palm Concession, Once Again Breaching Buyers’ NDPE Commitments”.

The report stated that Deru Semangat Sdn Bhd (DSSB) which is 55 percent owned by Tabung Haji, submitted an environmental impact assessment (EIA) for the development of 8,094 ha of an oil palm Plantation in Mukim Tembeling, Malaysia. This is the third phase of project that began in 2017 and covers almost 12,100 ha. A High Carbon Stock (HCS) assessment has not been conducted for these developments, rendering them in violation of industry NDPE policies.

TH Plantations clarified that DSSB is a joint venture company owned partly by Lembaga Tabung Haji, for which TH Plantations merely acts as a management agent and is not the owner of the land.

TH Plantations is firm in their stance and commitment with regards to the NDPE Policy. The new top management of THP which took over the realm of the THP Group in 2019, on becoming aware of the non-compliance of the DSSB Project against the NDPE Policy, acted quickly to remedy the situation. Under the circumstances, TH Plantations has already conveyed its intention to terminate the Management Agreement to DSSB sometime in 2019, which in principle, is agreeable by DSSB.

The parties are now finalising the agreements and documentations to that effect and the handing over process had been scheduled to be in March this year. However, due to the pandemic situation, the Movement Control Order (MCO) imposed by the government has put matters on hold and the parties now hope to complete the handing over soonest once the MCO is lifted.

We will monitor the termination progress of the management agreement closely.

October 2020 THP announced a moratorium of all land clearing activities in DSSB on the 2nd of October 2020.
January 2021 THP informed that the termination of Management Agreement between THP and DSSB has been completely resolved on the effective date of 15th January 2021.
December 2021
On 17 December 2021, THP signed a sale and purchase agreement for the disposal of the entire holding of TH shares in DSSB. (source : > Menu > Korporat > Informasi Korporat > Laporan Tahunan > Muat Turun Penyata Kewangan 2021 – page 249)

In light of the above, we consider this case closed.

December 2022
In line with their NDPE Commitment, THP informed us that they have signed an official agreement of Recovery Plan Project (RPP) with Global Environmental Centre (GEC) on 01 September 2022.

Based on the assessment of various locations and discussions with related stakeholders, it was decided in July 2022 to establish the project in and around Gunung Arong Forest Reserve (GAFR) in Mersing District in NE Johor State.

The RPP was scheduled to begin in early July 2022 and run for seven (7) years, until July 2029. Permission has been granted by the Johor State Forestry Department for GEC in partnership with THP to undertake the RPP. For details, please refer to the public statement here.

Regular updates on progress will be provided publicly through the company’s website.