Annual Report 2023

2023
197301001526 (15043-V)
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INSIDE THIS
REPORT
01 OUR
ORGANISATION 03 FINANCIAL
STATEMENTS
2 Corporate Information 130 Report of the Directors

3 51 Annual General Meeting
st
135 Statements of Profit or Loss
3 Financial Calendar 136 Statements of Other
4 Key Indicators Comprehensive Income
5 Corporate Profile 137 Statements of Financial

Position
6 Mission & Values
138 Consolidated Statement of
8 Location of the Group’s Changes in Equity
Operations
139 Statement of Changes in
10 Financial Highlights Equity of the Company
11 Simplified Group Assets & 140 Consolidated Statement of
Liabilities Cash Flows
12 Profile of Directors 144 Statement of Cash Flows of
17 Profile of Key Senior the Company
Management 146 Notes to the Financial
19 Chairman’s Statement Statements
21 Kenyataan Pengerusi 219 Directors’ Statement Pursuant
to Section 251(2) of the
23 Management Discussion &
Companies Act 2016
Analysis
219 Statutory Declaration Pursuant
50 Sustainability Statement &
to Section 251(1)(B) of the
Report
Companies Act 2016
104 Group Corporate Structure
220 Report of the Auditors
02 GOVERNANCE 04 OTHERS
107 Corporate Governance 224 Properties Held by the Group

Overview Statement 232 Share Price & Volume Traded
121 Statement on Risk 232 Changes in Share Capital
Management & Internal
Control 233 Shareholding Statistics
126 Audit and Risk Committee 236 Sustainability Reporting

Report Index
128 Additional Compliance 242 Notice of Meeting

Information 247 Notis Mesyuarat
Proxy Form
Directory
2 KUA LA LUM PUR KEPONG BER HAD
CORPORATE INFORMATION
BOARD OF DIRECTORS
R. M. ALIAS QUAH POH KEAT
Non-Independent Non-Executive Chairman Senior Independent Non-Executive Director
ANNE RODRIGUES
TAN SRI DATO’ SERI LEE OI HIAN
Independent Non-Executive Director
Chief Executive Officer
LEE JIA ZHANG

DATO’ LEE HAU HIAN
Chief Operating Officer
Non-Independent Non-Executive Director
CHERYL KHOR HUI PENG

DATO’ YEOH ENG KHOON
Non-Independent Non-Executive Director
an Sri Shahril Ridza Bin Ridzuan

T
COMPANY SECRETARY SHARE REGISTRAR

Yap Miow Kien Boardroom Share Registrars Sdn. Bhd.
11th Floor, Menara Symphony
AUDITORS No. 5, Jalan Prof. Khoo Kay Kim
BDO PLT Seksyen 13
46200 Petaling Jaya
PLACE OF INCORPORATION AND DOMICILE Selangor, Malaysia
In Malaysia as a public limited liability company Tel : +603-7890 4700
Fax : +603-7890 4670
Email : bsr.helpdesk@boardroomlimited.com
REGISTERED OFFICE/
Website : www.boardroomlimited.com
PRINCIPAL PLACE OF BUSINESS
Wisma Taiko
No. 1, Jalan S.P. Seenivasagam PRINCIPAL BANKERS
30000 Ipoh CIMB Bank Berhad
Perak, Malaysia HSBC Bank Malaysia Berhad
Tel : +605-240 8000 Malayan Banking Berhad
Fax : +605-240 8115 OCBC Bank (Malaysia) Berhad
Email : cosec@klk.com.my RHB Bank Berhad
Website : www.klk.com.my
STOCK EXCHANGE LISTING
Listed on the Main Market of Bursa Malaysia
Securities Berhad on 6 February 1974
Stock Code : 2445
Stock Name : KLK
ANNUAL REPORT 2023 3
OUR OR GANIS ATION
51
ANNUAL
ST
21
Day/Date:
Wednesday,
21 February 2024
Time:
11.00 a.m.
Venue:
Conference Room, Ground Floor
Wisma Taiko
No. 1, Jalan S.P. Seenivasagam
GENERAL 30000 Ipoh, Perak

Malaysia
MEETING
FINANCIAL CALENDAR
FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
ANNOUNCEMENT OF QUARTERLY RESULTS
First Quarter Second Quarter Third Quarter Fourth Quarter

22 February 2023 24 May 2023 24 August 2023 22 November 2023
INTERIM DIVIDEND
Announcement Entitlement Date Payment Date

24 May 2023 11 July 2023 1 August 2023
FINAL DIVIDEND
Announcement Entitlement Date* Payment Date*

8 DECEMBER 2023
* will be announced in due course

KEY INDICATORS
REVENUE
RM23.648
Billion
FY2022: RM27.149 billion
PROFIT ATTRIBUTABLE
TO EQUITY HOLDERS
RM834.3
Million
FY2022: RM2.166 billion
SHARE PRICE
RM21.40
30 September 2022:
RM20.70
MARKET CAPITALISATION*
RM23.079
Billion
30 September 2022:
RM22.318 billion
DIVIDEND PER SHARE
60
Sen
FY2022: 100 sen
EARNINGS PER SHARE
77.4
Sen
FY2022: 200.9 sen
* Based on closing price on 30 September 2023

OUR OR GANIS ATION
CORPORATE PROFILE
PLANTATION
Kuala Lumpur Kepong Berhad (“KLK”) started as

a plantation company in 1906 and until today, the
development of oil palm and rubber remains the
Group’s core business. KLK presently has about
300,000 hectares of planted area (97% oil palm).
Our land bank is spread across Malaysia (Peninsular
and Sabah), Indonesia (Belitung Island, Sumatra,
as well as Kalimantan) and Liberia.
MANUFACTURING
In order to optimise value across the supply chain,

KLK diversified into resource-based manufacturing
(refinery and oleochemical), and vertically integrated
its upstream, midstream and downstream businesses.
The Group has since expanded its manufacturing
operations resulting in an international oleochemicals
operations in Malaysia, Indonesia, China, Switzerland,
Germany, the Netherlands, Belgium and Italy.
PROPERTY DEVELOPMENT
In 1990, KLK started capitalising on the strategic

location of its land bank in Peninsular Malaysia by
branching into property development under KLK
Land. Our first foray into property development was
Sierramas in Sungai Buloh, a joint venture with Tan &
Tan Developments Berhad, a wholly owned subsidiary
of IGB Berhad. It is currently focused on Bandar
Seri Coalfields, a 1,001-acre township in Sungai Buloh
and Caledonia in Ijok, Selangor.
MISSION
STRIVE FOR EXCELLENCE
• Offering quality products and services at competitive prices.
• Being a good and responsible corporate citizen.
• Earning a fair return on investments.
• Maintaining steady dividend payments and adequate dividend cover.
• Sustaining growth through re-investment of retained profits.
• Maintaining a high standard of business ethics and practices.
• Fulfilling our social responsibilities in the community in which we operate.

OUR OR GANIS ATION
VALUES
TEAMWORK
Going beyond
INNOVATION
geographical,
RESULTS
divisional and Levelling up
functional boundaries Committed to through new ideas
to achieve common exceptional execution and continuous
goals. Collaboration and excellence to improvement to
is at the heart of make a difference in consistently exceed
all we do. everything we do. expectations.
T H R I I L
HUMILITY INTEGRITY LOYALTY
Having an open mind Ethical leadership Committed to
to recognise the with a strong moral building a better
strength of others compass that inspires future together, with
and willingness to every individual to do mutual trust and care
stretch ourselves the right thing. while upholding the
and grow. Company’s interest
as our own.
Lahad Datu, Sabah

LOCATION OF THE GROUP’S OPERATIONS

AS AT 30 SEPTEMBER 2023
Germany
Netherlands
Belgium
EUROPE
Switzerland
Italy
AFRICA
Liberia
PLANTATION MANUFACTURING PROPERTY DEVELOPMENT OTHERS (FARMING)

OUR OR GANIS ATION
ASIA
China
Peninsular Malaysia, Malaysia
Sabah, Malaysia
Kalimantan, Indonesia
Sumatra, Indonesia
AUSTRALIA
Western Australia, Australia

FINANCIAL HIGHLIGHTS
EARNINGS PER SHARE SHAREHOLDERS’ EQUITY

(SEN) (RM BILLION)
58.0 72.0 209.3 200.9 77.4 10.36 10.83 11.86 14.29 14.32
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
DIVIDEND YIELD DIVIDEND PAYOUT RATIO

(%) (%)
2.2 2.2 5.0 4.8 2.8 86.2 69.4 47.8 49.8 77.5
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
RETURN ON SHAREHOLDERS’ EQUITY RETURN ON TOTAL ASSETS

(%) (%)
6.0 7.1 19.0 15.2 5.8 3.2 4.1 8.7 8.1 3.3
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
NET TANGIBLE ASSETS PER SHARE NET DEBT TO EQUITY

(RM) (%)
9.4 9.7 10.7 12.9 12.9 25.0 21.6 37.3 40.7 45.8
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
OUR OR GANIS ATION
SIMPLIFIED GROUP ASSETS & LIABILITIES

TOTAL ASSETS
23% 25%
43% 40%
2023 2022
RM30,126 RM30,239
MILLION MILLION
8% 9%
22% 4% 21% 5%
2023 2022
Property, Plant and Equipment RM12,906 million 43% RM12,123 million 40%
Right-of-use Assets RM1,326 million 4% RM1,339 million 5%
Other Non-Current Assets RM6,413 million 22% RM6,272 million 21%
Short Term Funds and Cash RM2,500 million 8% RM2,852 million 9%
and Cash Equivalents
Other Current Assets RM6,981 million 23% RM7,653 million 25%
TOTAL EQUITY & LIABILITIES
13% 16%
48% 47%
2023 2022
RM30,126 RM30,239
MILLION MILLION
33% 31%
6% 6%
2023 2022
Shareholders’ Equity RM14,319 million 48% RM14,287 million 47%

Non-Controlling Interests RM1,825 million 6% RM1,765 million 6%
Borrowings RM9,894 million 33% RM9,382 million 31%
Other Liabilities RM4,088 million 13% RM4,805 million 16%
PROFILE OF DIRECTORS
R. M. ALIAS TAN SRI DATO’ SERI LEE OI HIAN

Chairman Chief Executive Officer
Non-Independent Non-Executive Director Executive Director
Aged 91 Male Malaysian Aged 72 Male Malaysian
Meeting Attendance: 8/8 Meeting Attendance: 8/8
Joined the Board on 1 July 1978 and has been the Joined the Board on 1 February 1985 and is the Chief
Chairman of KLK since 2008. Executive Officer (“CEO”) of KLK.
R. M. Alias holds a Bachelor of Arts (Honours) degree Tan Sri Dato’ Seri Lee Oi Hian graduated with a Bachelor
from the University of Malaya, Singapore, a Certificate of Agricultural Science (Honours) degree from the University
in Public Administration from the Royal Institute of Public of Malaya and obtained his Master in Business
Administration, London and has attended the Advanced Administration from Harvard Business School.
Management Program at Harvard Business School.
He joined the Company in 1974 as an executive and was
He is also a member on the Board of Trustees of the subsequently appointed to the Board in 1985. In 1993,
Yayasan KLK. he was appointed as the Group’s Chairman/CEO and
held the position until 2008, when he relinquished his role
as Chairman, but remains as Executive Director and CEO of
the Group.
He is the Chairman of Batu Kawan Berhad, a company

listed on the Main Market of Bursa Malaysia Securities
Berhad, and the Chairman of KLK Sawit Nusantara Berhad.
He also serves as a member on the Board of Trustees of
the Perdana Leadership Foundation, UTAR Education
Foundation and Yayasan Wesley. He was formerly the
Chairman of the Malaysian Palm Oil Council.
Tan Sri Dato’ Seri Lee is the brother of Dato’ Lee Hau Hian
and the father of Mr. Lee Jia Zhang. He is deemed connected
with Batu Kawan Berhad, one of the major shareholders
of KLK, and is also deemed interested in various related
party transactions with the KLK Group.
OUR OR GANIS ATION
DATO’ LEE HAU HIAN DATO’ YEOH ENG KHOON

Non-Independent Non-Executive Director Non-Independent Non-Executive Director
Chairman of Nomination Committee Member of Audit and Risk Committee
Member of Remuneration Committee
Joined the Board on 20 December 1993. Joined the Board on 24 February 2005.
Dato’ Lee Hau Hian graduated with a Bachelor of Dato’ Yeoh Eng Khoon obtained his Bachelor of Arts
Science (Economics) degree from the London School of (Honours) degree in Economics (Business Administration)
Economics and has a Master in Business Administration from the University of Malaya in 1968 and was called to the
from Stanford University. Bar of England and Wales at Lincoln’s Inn in 1979.
He is the Managing Director of Batu Kawan Berhad, His past working experience included banking,
a company listed on the Main Market of Bursa Malaysia manufacturing and retail business.
Securities Berhad, and the Chairman of Chemical Company
of Malaysia Berhad. He is also a Director of See Sen He is a Director of Batu Kawan Berhad, a company listed
Chemical Berhad and Synthomer plc, a company listed on the Main Market of Bursa Malaysia Securities Berhad.
on the London Stock Exchange. He is also the President of He is also a Director of See Sen Chemical Berhad.
the Perak Chinese Maternity Association. He also serves as
a member on the Board of Trustees of the Tan Sri Lee Loy
Seng Foundation, Yayasan KLK and Yayasan De La Salle.
He is the brother of Tan Sri Dato’ Seri Lee Oi Hian and the
uncle of Mr. Lee Jia Zhang. He is deemed connected with
Batu Kawan Berhad, a major shareholder of KLK, and is also
deemed interested in various related party transactions with
the KLK Group.
QUAH POH KEAT ANNE RODRIGUES

Senior Independent Non-Executive Director Independent Non-Executive Director
Chairman of Audit and Risk Committee Member of Audit and Risk Committee
Member of Remuneration Committee Member of Nomination Committee
Aged 71 Male Malaysian Aged 73 Female Malaysian
Appointed to the Board on 18 February 2016. Appointed to the Board on 6 September 2017.
Mr. Quah Poh Keat is a Fellow of the Malaysian Institute Mrs. Anne Rodrigues is a member of Malaysian Institute
of Taxation and the Association of Chartered Certified of Accountants and was a Fellow of the Association of
Accountants; and a Member of the Malaysian Institute of Chartered Certified Accountants. She also holds a Master in
Accountants, the Malaysian Institute of Certified Public Business Administration (Distinction) from the University of
Accountants and Chartered Institute of Management Bath MIM and a Bachelor of Economics (Class 1 Honours)
Accountants. degree from University of Malaya.
He was a partner of KPMG since October 1982 and was Mrs. Anne Rodrigues was the Group Chief Financial Officer
appointed Senior Partner (also known as Managing Partner of Felda Global Ventures Holdings Berhad (“FGV”) till her
in other practices) in October 2000 until 30 September 2007. official retirement in December 2010. Subsequent to that,
He retired from the firm on 31 December 2007. she continued as Finance Advisor in FGV and also was
posted to Boston as Chief Financial Officer of TRT Holdings
He had served as a Director of Public Bank Berhad Group Boston USA. She retired in December 2012.
from 30 July 2008 to 1 October 2013 until his appointment
as the Deputy Chief Executive Officer of Public Bank She has more than 30 years’ experience in the financial
from 1 October 2013 until 31 December 2015. Prior to that, sector, having been previously appointed as the Corporate
he was also a Director of IOI Properties Berhad, PLUS Treasurer and subsequently Finance Director of Malaysia
Expressways Berhad, IOI Corporation Berhad and Telekom International Shipping Corporation and previous to that
Malaysia Berhad. as Finance Manager, Boustead Travel Sdn Bhd. Currently,
she is a Director of VSTECS Berhad, a company listed on
Mr. Quah is experienced in auditing, tax and insolvency the Main Market of Bursa Malaysia Securities Berhad.
practices and has worked in Malaysia and the United She also serves as a member of the Financial Reporting
Kingdom; his field of expertise includes restructuring, Foundation.
demergers and privatisation.
Currently, he is a Director of LPI Capital Bhd, Paramount

Corporation Berhad and Malayan Flour Mills Berhad,
companies listed on the Main Market of Bursa Malaysia
Securities Berhad. He also sits on the Boards of Public
Mutual Berhad, Lonpac Insurance Berhad, Public Finance
Ltd, Public Financial Holdings Ltd, Cambodian Public Bank
Ltd, Campu Lonpac Insurance Plc and Campu Securities Plc.
OUR OR GANIS ATION
LEE JIA ZHANG CHERYL KHOR HUI PENG

Chief Operating Officer Independent Non-Executive Director
Executive Director Member of Audit and Risk Committee
Appointed to the Board on 16 May 2018. Appointed to the Board on 1 December 2021.
Mr. Lee Jia Zhang holds a Master degree in Chemical Ms. Cheryl Khor Hui Peng graduated from University Putra
Engineering (MEng) (Hons) from Imperial College, United Malaysia with a Bachelor of Mathematics (Honours). She is
Kingdom. He is a Chartered Accountant and a Member of a Fellow and Faculty Member of the Institute of Corporate
the Institute of Chartered Accountants Scotland (ICAS). Directors Malaysia where she conducts training for
He has also completed the Accelerated Development directors on various board and governance topics across all
Programme from the University of Chicago Booth School industries.
of Business (Executive Education). She is also a member of the Malaysian Institute of
Certified Public Accountants, Malaysian Institute of
He began his career with Ernst & Young LLP, United Accountants and Institute of Internal Auditors Malaysia.
Kingdom from 2006 to 2009 and thereafter with KPMG,
Kuala Lumpur in 2009 both in audit. He then joined KLK Ms. Cheryl Khor has more than 25 years of experience
Group in 2010 and has since held various positions in the covering financial, operational and internal audits as well as
Oleochemical and Corporate divisions. He started his governance, controls, sustainability, internal audit and risk
career in KLK as a Senior Manager and is currently the assessments for clients across a broad range of industries.
Group’s Chief Operating Officer assisting the CEO to She began her career in 1998 as a financial auditor and
formulate, drive and execute operation strategies and chartered accountant at Ernst & Young. Ms. Cheryl Khor
determine the overall strategic direction of the Group. diversified her skill sets and breadth of experience when
she joined Deloitte in 2013 where she led the Risk Advisory
In his capacity as KLK Group Chief Operating Officer,
practice, complementing her chartered accountant
Mr. Lee directs the daily conduct of the Group’s operations,
experience with sustainability, governance and risk expertise.
management and administration across the Group’s
She was appointed as its Managing Director in 2014 and
business sectors. He also oversees several of the Group’s
held the position until May 2021. Whilst in Deloitte, she held
corporate functions and works with Senior Management
numerous leadership roles culminating in the position of Asia
to create, implement and roll out operational processes,
Pacific Accounting and Internal Control Leader and was also
internal infrastructures, reporting systems and company elected onto the Deloitte South East Asia Board of Directors.
policies. In addition, Mr. Lee was also appointed as the
Chief Executive Officer of the Group’s Oleochemical Division Ms. Cheryl Khor serves as an Independent Director on the
on 1 April 2022. Boards of Hong Leong Industries Berhad, Alliance Bank
Malaysia Berhad and Malaysia Airports Holdings Berhad,
Mr. Lee is the son of Tan Sri Dato’ Seri Lee Oi Hian and all of which are listed on Bursa Malaysia Securities Berhad.
the nephew of Dato’ Lee Hau Hian. Both Tan Sri Dato’ Seri She also serves as a Director of several public companies
Lee Oi Hian and Dato’ Lee Hau Hian are Directors and namely, Chubb Insurance Malaysia Berhad, Leader Energy
major shareholders of KLK. Holding Berhad and RAM Holdings Berhad.
Tan Sri Shahril Ridza Bin Ridzuan

Chairman of Remuneration Committee
Member of Nomination Committee
Aged 53 Male Malaysian
Meeting Attendance: 6/6*
Appointed to the Board on 2 May 2023.
Tan Sri Shahril Ridza Bin Ridzuan holds a Masters in

Arts (First Class) from University of Cambridge and a
Bachelor in Civil Law (First Class) from University of Oxford.
He has been called to both the Malaysian Bar and the Bar
of England and Wales.
Tan Sri Shahril is currently the Chairman of Axiata Group

Berhad, a company listed on the Main Market of Bursa
Malaysia Securities Berhad. He also holds the position of
Chairman at Ekuiti Nasional Berhad and is a member of the
Board of Pengurusan Danaharta Nasional Berhad.
Previously, Tan Sri Shahril led Khazanah Nasional Berhad

as its Managing Director from August 2018 to August
2021, and before that, he served as Chief Executive Officer
(“CEO”) of the Employees Provident Fund of Malaysia
(“EPF”) from April 2013 to August 2018. Tan Sri Shahril
joined EPF as Deputy CEO (Investments) in December 2009.
During his tenure at EPF, he also served as a Non-Executive Additional Information:
Board Member of Media Prima Berhad, Malaysia Building
1. Save as disclosed in the Profile of Directors, none of the Directors
Society Berhad, Malaysian Resources Corporation Berhad has:
(“MRCB”) and IJN Holdings Sdn Bhd. (i) any directorship in public companies and listed issuers;
(ii) any family relationship with any Director and/or major
Prior to joining EPF, Tan Sri Shahril was the Managing shareholder of KLK; and
(iii) any conflict of interest or potential conflict of interest with KLK.
Director of MRCB from 2003 to 2009. Tan Sri Shahril
had also served as a Non-Executive Director of Malaysia 2. None of the Directors has:
(i) been convicted of any offence (other than traffic offences)
Airlines Berhad and Malaysia Aviation Group Berhad from within the past five (5) years; and
June 2020 to March 2023. He was also the Chairman of (ii) been imposed with any public sanction or penalty by the
the Nomination and Remuneration Committee of both relevant regulatory bodies during the financial year.
companies. 3. Details of the Directors’ attendance at Board meetings are set out
in the Corporate Governance Overview Statement on page 109.
* Reflects the attendance and the number of meetings held during
the period the Director held office.
OUR OR GANIS ATION
PROFILE OF KEY SENIOR MANAGEMENT
TAN SRI DATO’ SERI LEE OI HIAN LEE JIA ZHANG

Chief Executive Officer Chief Operating Officer
Tan Sri Dato’ Seri Lee was appointed as the Group’s Mr. Lee Jia Zhang was appointed as the Executive Director
Chairman/Chief Executive Officer (“CEO”) in 1993 and held of KLK on 16 May 2018 and he is currently the Group’s
the position until 2008. On 1 May 2008, he relinquished Chief Operating Officer assisting the CEO to formulate, drive
his role as Chairman but has retained his position as and execute operation strategies and determine the overall
Executive Director and CEO of the Group. His profile is listed strategic direction of the Group. He was also appointed as
in the Profile of Directors on page 12. the Chief Executive Officer of the Group’s Oleochemical
Division on 1 April 2022.
Mr. Lee joined KLK Group in 2010 and has since held various
positions in the Oleochemical and Corporate divisions.
His profile is listed in the Profile of Directors on page 15.
PATRICK NG HONG CHUAN LEE WEN LING

Group Plantations Director Managing Director, Property Development
Mr. Patrick Ng holds a Bachelor of Engineering degree with Ms. Lee Wen Ling holds a degree in Economics from the
Honours (Civil Engineering) from Universiti Sains Malaysia University of Bristol, United Kingdom and joined KLK
and was awarded the 2006 British-Chevening (Malaysia) Land in June 2012 as a Sales Executive. She worked her
Scholarship to pursue his Master of Science in Imperial way up the ranks, and has been involved in overseeing the
College (University of London) where he graduated with sales & marketing, business development, planning and
Distinction in Environmental Engineering and Sustainable implementation of KLK’s property projects. She was the
Development. He also completed the Harvard Business Deputy Managing Director of KLK Land before she was
School Online Program on Leadership Principles in 2021. appointed as the Managing Director of KLK Land.
He is a Graduate Member of the Institution of Engineers Ms. Lee Wen Ling is the daughter of Tan Sri Dato’ Seri Lee
Malaysia, Life Member of the International Society of Oil Oi Hian, the Group CEO and a major shareholder of KLK.
Palm Agronomist and a Member of the Incorporated Society
She is the sister of Mr. Lee Jia Zhang, the Group Chief
of Planters.
Operating Officer, and niece of Dato’ Lee Hau Hian,
Mr. Patrick Ng was appointed as the Group Plantations a Director and major shareholder of KLK.
Director on 1 October 2022. Prior to his appointment,
he was the President Commissioner of KLK’s subsidiaries
in Indonesia. He joined KLK in May 2021 after serving as
the Deputy Director of KLK’s Associate Company, Applied
Agriculture Resources Sdn. Bhd. (“AAR”). He was with AAR
since 1998 overseeing Research and Development with
emphasis on palm nutrition and agro-management practices.
PROFILE OF KEY SENIOR MANAGEMENT
WILLIAM ONG ENG SAN YAP MIOW KIEN

Group Chief Financial Officer Company Secretary
Mr. William Ong graduated from Heriot-Watt University, Ms. Yap has an LL.B (Hons) degree from the University
Edinburgh with a Bachelor of Arts in Accountancy and of Leeds, United Kingdom. She also qualified as a
Finance. He is a Chartered Accountant and a Fellow Barrister-at-Law of the Middle Temple, London, and as an
Member of the Association of Chartered Certified Advocate & Solicitor of the High Court of Malaya. She is an
Accountants, United Kingdom. He is also a Member of the Associate Member of the Malaysian Institute of Chartered
Malaysian Institute of Accountants. Secretaries and Administrators.
Mr. William Ong joined KLK Group in November 2021 as Ms. Yap joined KLK in 2002 as a Legal Manager and
KLK Oleo Group Financial Controller. He was appointed was appointed as the Company Secretary of KLK on
as the Acting Group Chief Financial Officer of KLK on 2 September 2008 where she oversees the Legal and
1 October 2022 and was appointed as the Group Chief Secretarial Department. She began her career with a
Financial Officer on 10 April 2023. leading law firm in Kuala Lumpur and subsequently joined
the private sector as an executive in the legal divisions of
Prior to joining KLK, he began his career with
the Usaha Tegas Group and Tanjong Plc.
PricewaterhouseCoopers PLT in 2004, before he joined
I Berhad in 2013, a company listed on the Main Market
of Bursa Malaysia Securities Berhad.
ADDITIONAL INFORMATION
1. Save as disclosed above, none of the Key Senior Management has:

(i) any directorship in public companies and listed issuers;
(ii) any family relationship with any Director and/or major shareholder of KLK; and
(iii) any conflict of interest or potential conflict of interest with KLK.
2. None of the Key Senior Management has:

(i) been convicted of any offence (other than traffic offences) within the past five (5) years; and
(ii) been imposed with any public sanction or penalty by the relevant regulatory bodies during the financial year.
OUR OR GANIS ATION
CHAIRMAN’S STATEMENT
As expected, 2023 was a challenging

year for businesses globally. Despite
the headwinds faced, the Group
forged ahead with its focus on
optimising all business operations.
R. M. ALIAS
Chairman
The Group reported a lower net profit attributable to As expected, 2023 was a challenging year for businesses
shareholders of RM834.3 million in FY2023, 62% lower globally. Despite the headwinds faced, the Group
than the RM2.166 billion reported in FY2022. The decrease forged ahead with its focus on optimising all business
was primarily due to significantly lower contribution from operations. For the Plantation division, this led to a 5%
all business segments, arising from lower palm product increase in total Fresh Fruit Bunches (“FFB”) production to
prices and elevated production cost for its Plantation 5.25 million tonnes in FY2023, compared to 4.99 million
division; and the challenging macroeconomic operating tonnes in FY2022. Production volume had increased due
environment for its Manufacturing division, especially to improvements in estate operations management,
oleochemical business. such as pruning, harvesting and upkeep of field work
following the return of workers during the financial year.
The Group’s results were also hampered by a few major
items, i.e. provision for impairment of plasma receivables Our palm oil yield of 4.36 mt/ha in FY2023 is slightly
associated with KLK Sawit Nusantara (formerly IJM higher compared to 4.20 mt/ha in FY2022 with much more
Plantations Group) (“KSN”) of RM60.5 million, one-off cost room to improve to enhance estate operational efficiency,
of restructuring of Oleochemical operation in Dusseldorf productivity and ultimately yields. This improvement has
amounting to RM70.6 million and share of Synthomer’s to begin from training and providing attention to the
results on the impairment of goodwill from acquisition of substantial number of newly recruited inexperienced
adhesive business amounting to RM199.8 million. workers, and also focused on normalisation of agricultural
conditions as well as work towards efficiency in crop
Based on an earnings per share of 77.4 sen, the Board recovery and quality. The Group must also continue
is recommending a final dividend of 40 sen per share, in to maintain high replanting standards to secure better
addition to the earlier interim dividend of 20 sen. future yields.
CHAIRMAN’S STATEMENT
Despite the improvement in our yields to 20.5 mt/ha in Acknowledgement

FY2023, much still needs to be done for us to reach our
Whilst it has been a challenging year for the Group,
estimates of almost 23.0 mt/ha in FY2024; a tall order no
we are comforted by the fact that KLK is being steered
doubt, but certainly not impossible for our dedicated and
in the right direction under the stewardship of CEO Tan Sri
highly charged team! We have clearly identified the main
Lee Oi Hian, and backed by a competent, experienced
factors that limit our yields in each region and had started
team. We also have a Board which closely monitors and
implementing site-specific strategies to overcome them
guides accordingly, with some of us contributing for many
even during FY2023.
years now.
Key initiatives that have since started and will carry
On behalf of the Board, I would like to take this opportunity
through FY2024 include continuously filling up worker
to remember our dear colleague, the late Tan Sri Azlan
vacancies, training them and improving field supervision;
bin Mohd Zainol, who passed away in January 2023.
managing water in our alluvial flats, coastal plains and
Tan Sri Azlan had served as a member on the Board since
organic soils optimally using scientific, knowledge-based
2013 and made significant contributions to the Group.
initiatives; addressing poor fruit set due mainly to poorer
We will always cherish his friendship and dedication, and
pollination in our young plantings; eradicating key pest of
he will be sorely missed by all of us. Al-fatihah.
mealy bugs which causes sooty mould and significantly
affect palm photosynthesis mainly in Tawau/Sabah; We are pleased to welcome Tan Sri Shahril Ridza bin
implementing vigorous protocols to address Ganoderma Ridzuan who joined the Board on May 2, and who brings
boninense especially in the older palms; further expanding with him a wealth of experience and expertise that will
proven practical mechanisation systems; emulating be invaluable to KLK. We are confident that Tan Sri Shahril
practices and discipline from regions (>30,000 ha) which will strengthen our Board and help us achieve our goals
have proven capable of yielding 6 mt oil/ha, and basically with his insights and guidance.
doing things right from the very beginning.
KLK is a sturdy and resilient company, with its people as its
In short, all “Back to Basics” operations must be well core asset. It is important to continue working together as
planned, executed, checked and cross-checked by all a team to strive for a stronger, better future. I am confident
levels of management. that together, the Group will grow in leaps and bounds,
whilst remaining true to its THRIIL (Teamwork, Humility,
The decline in profit of our Manufacturing division was
Results, Integrity, Innovation and Loyalty) culture.
mainly attributable to lower profit contributions from the
Oleochemical division, especially in Europe and China. On behalf of the Board, I thank all our shareholders and
Demand remains lethargic in Europe amid recession and a stakeholders for their continued support. A special thanks
higher interest rate environment. The economic recovery in to the various Governments in countries where we operate,
China was also slower than expected. and to our business partners for trusting our capabilities
and dedication.
A strategic restructuring exercise of our European
operations is ongoing, which includes the reduction of This will be my last address to you, our esteemed
excess basic oleo capacity to contain the worrying losses, shareholders. I am grateful and thankful for all your support.
as demand there is expected to continue to be challenging I had joined the Board in 1978, at the invitation of the
for the coming Quarters. The silver lining for the late Founding Chairman Tan Sri Lee Loy Seng, and have
Manufacturing division for FY2024 is that most of the had the honour of being Chairman for the last 15 years.
major projects will be completed and operational in stages The time is right for me to step back from the Group.
within the said period. This should provide a boost in its As such, I would like to also thank all the Board of
contribution to the Group. We also expect a slow but steady Directors, past and present, the Management and staff
recovery in customer demand as they are expected to of KLK. I am confident that the Board will remain
remain cautious, no longer buying to stock up, but buying committed to further strengthening and expanding the
only when needed. Group. I wish the Group continued success in the future.
The Group continues to leverage on its competitive
advantage of local knowledge and global best practices
to drive innovation of product applications, as well as
operational and cost efficiencies.
OUR OR GANIS ATION
KENYATAAN PENGERUSI
Hasil minyak sawit kami sebanyak 4.36 mt/ha pada

TK2023 adalah lebih tinggi sedikit berbanding
Seperti yang dijangka, 2023 merupakan tahun
4.20 mt/ha pada TK2022, dengan lebih banyak ruang
yang mencabar bagi perniagaan di seluruh
untuk meningkatkan kecekapan operasi, produktiviti dan
dunia. Meskipun banyak rintangan yang
hasil. Penambahbaikan ini harus bermula daripada latihan
dihadapi, Kumpulan KLK terus maju dengan
dan dengan memberi tumpuan kepada sebilangan besar
tumpuan kepada mengoptimumkan semua pekerja baharu yang tidak berpengalaman di samping
operasi perniagaan. menumpukan kepada normalisasi keadaan pertanian serta
berusaha ke arah kecekapan dalam pemulihan dan mutu
R. M. ALIAS
tanaman. KLK juga mesti terus mengekalkan piawaian
Pengerusi
penanaman semula yang tinggi bagi memastikan hasil
akan datang yang lebih baik.
Walaupun hasil sawit meningkat kepada 20.5 mt/ha pada

Kumpulan KLK melaporkan keuntungan bersih yang TK2023, masih banyak yang perlu dilakukan untuk
boleh diagihkan kepada pemegang saham yang lebih mencapai anggaran kami sebanyak hampir 23.0 mt/ha
rendah sebanyak RM834.3 juta pada TK2023, berbanding pada TK2024. Tentunya ini satu tugas yang sukar, namun
penurunan sebanyak 62% atau RM2.166 bilion yang pastinya ia tidak mustahil untuk dicapai oleh pasukan
dilaporkan pada TK2022. Penurunan ini terutamanya kami yang cukup berdedikasi dan tekun! Kami telah
disebabkan oleh sumbangan yang lebih rendah daripada mengenal pasti faktor-faktor utama yang menghadkan
semua segmen perniagaan, akibat harga produk sawit hasil kami di setiap rantau. Untuk itu, kami telah mula
yang lebih rendah dan peningkatan kos pengeluaran melaksanakan strategi khusus untuk mengatasi segala
bagi segmen Perladangan; serta persekitaran operasi batasan ini, yang malah telah sedia dilaksanakan
ekonomi makro yang mencabar bagi segmen Perkilangan, sepanjang TK2023.
terutamanya perniagaan oleokimia.
Inisiatif utama yang telah bermula sejak itu dan akan
Hasil Kumpulan turut terjejas disebabkan oleh beberapa diteruskan pada TK2024 termasuk mengisi kekosongan
item utama, iaitu peruntukan bagi rosot nilai akaun belum pekerja secara berterusan, melatih mereka dan
terima skim plasma yang berkaitan dengan KLK Sawit menambah baik pengawasan tapak; mengurus air
Nusantara Bhd (sebelumnya IJM Plantations Group) di kawasan tanah rata; tanah pesisir laut dan tanah organik
(“KSN”) sebanyak RM60.5 juta, kos sekali sahaja untuk kami secara optimum menggunakan inisiatif saintifik
penyusunan semula operasi Oleokimia di Düsseldorf yang dan berasaskan pengetahuan; menangani buah buruk
berjumlah RM70.6 juta dan bahagian hasil Synthomer khususnya disebabkan oleh pendebungaan yang tidak
ke atas rosot nilai muhibah daripada pengambilalihan baik di kalangan hasil penanaman awal kami;
perniagaan pelekat sebanyak RM199.8 juta. menghapuskan serangga perosak utama iaitu koya
yang mengakibatkan penyakit kulat dan menjejaskan
Berdasarkan pendapatan sesaham sebanyak 77.4 sen,
fotosintesis sawit terutamanya di Tawau/Sabah;
Lembaga Pengarah mengesyorkan dividen akhir sebanyak
melaksanakan protokol yang ketat untuk menangani
40 sen sesaham, sebagai tambahan kepada dividen
ganoderma boninense terutamanya di kalangan kelapa
interim 20 sen yang terdahulu.
sawit yang lebih tua; mengembangkan lagi sistem
Seperti yang dijangka, 2023 merupakan tahun yang mekanisasi yang praktikal dan terbukti; menyaingi
mencabar bagi perniagaan di seluruh dunia. Meskipun amalan dan disiplin dari kawasan (>30,000 ha) yang telah
banyak rintangan yang dihadapi, KLK terus maju dengan terbukti mampu menghasilkan 6 mt minyak/ha, dan pada
tumpuan kepada mengoptimumkan semua operasi dasarnya mengamalkan cara-cara yang betul dari peringkat
perniagaan. Bagi segmen Perladangan, peningkatan pemulaan.
sebanyak 5% tercatat dalam pengeluaran buah tandan
Secara ringkasnya, semua operasi “Back to Basics” mesti
segar (“BTS”) kepada 5.25 juta tan pada TK2023,
dirancang, dilaksana, diperiksa dan disemak dengan baik
berbanding 4.99 juta tan pada TK2022. Volum pengeluaran
oleh semua peringkat pengurusan.
telah meningkat hasil daripada penambahbaikan dalam
pengurusan operasi ladang, seperti pemotongan, penuaian
dan penjagaan selepas tenaga pekerja kembali dalam
tempoh tahun kewangan.
KENYATAAN PENGERUSI
Penurunan keuntungan segmen Perkilangan kami adalah Sukacita juga kami mengalu-alukan Tan Sri Shahril
terutamanya disebabkan oleh sumbangan keuntungan Ridza bin Ridzuan yang menyertai Lembaga Pengarah
yang lebih rendah daripada segmen Oleokimia, khususnya pada 2 Mei. Pengalaman dan kemahiran beliau yang
di Eropah dan China. Permintaan kekal lembap di Eropah begitu luas amat berharga bagi KLK. Kami yakin bahawa
ketika kemelesetan ekonomi dan persekitaran kadar Tan Sri Shahril akan memperkukuh kedudukan Lembaga
faedah yang lebih tinggi. Pemulihan ekonomi China juga Pengarah dan membantu kami mencapai matlamat kami
lebih perlahan daripada yang dijangka. dengan pandangan dan bimbingan beliau.
Kegiatan penstrukturan semula strategik bagi operasi KLK adalah sebuah syarikat yang kukuh dan berdaya
Eropah kami masih berterusan. Ia termasuklah tahan, dengan para pekerja sebagai aset terasnya.
pengurangan lebihan kapasiti oleo asas untuk Bekerja bersama sebagai satu pasukan kekal sebagai
membendung kerugian yang membimbangkan, oleh satu kepentingan, dalam usaha kami untuk menuju
kerana permintaan dijangka terus mencabar bagi
masa depan yang lebih baik. Saya yakin bahawa
Suku Tahun yang akan datang. Hikmah di sebalik ini bagi
bersama-sama, Kumpulan akan bertambah maju, dan
segmen Perkilangan untuk TK2024 adalah kebanyakan
pada masa yang sama mendukung budaya THRIIL [Kerja
projek utama akan diselesaikan dan beroperasi secara
berperingkat dalam tempoh tertentu. Perkara ini boleh Berpasukan (Teamwork), Kerendahan Hati (Humility),
mendorong sumbangannya kepada Kumpulan. Kami Hasil (Results), Integriti (Integrity), Inovasi (Innovation)
juga menjangka pemulihan perlahan namun stabil dan Kesetiaan (Loyalty)].
dalam permintaan pelanggan memandangkan mereka
Bagi pihak Lembaga Pengarah, saya mengucapkan
dijangka akan kekal berhati-hati, tidak lagi membeli untuk
menyimpan, tetapi hanya membeli bila perlu. terima kasih kepada semua pemegang saham dan pihak
berkepentingan atas sokongan berterusan mereka.
Kumpulan KLK akan terus memanfaatkan kelebihan Sekalung penghargaan khusus kepada pelbagai kerajaan
kompetitif menerusi pengetahuan tempatan dan amalan di negara-negara di mana kami beroperasi, dan kepada
terbaik global untuk memacu inovasi aplikasi produk, rakan perniagaan kami kerana mempercayai keupayaan
serta kecekapan operasi dan kos.
dan dedikasi kami.
Penghargaan Ini akan menjadi perutusan terakhir saya kepada anda,

pemegang saham kami yang dihargai. Saya bersyukur
Walaupun ini adalah satu tahun yang mencabar bagi
dan berterima kasih atas segala sokongan anda.
Kumpulan, kami berasa lega dengan hakikat bahawa
Saya telah menyertai Lembaga Pengarah pada tahun
Kumpulan KLK, dikemudi ke arah yang betul di bawah
1978, atas jemputan daripada Pengerusi Pengasas, Tan Sri
pimpinan Ketua Pegawai Eksekutif, Tan Sri Lee Oi Hian,
Lee Loy Seng, dan telah diberi penghormatan untuk
dan disokong oleh pasukan yang cekap dan
menjadi Pengerusi selama 15 tahun. Kini tibalah masanya
berpengalaman. Kami juga mempunyai Lembaga Pengarah
untuk saya berundur dari Kumpulan KLK. Maka itu, saya
yang memantau dan membimbing secara teliti, di mana
juga ingin mengucapkan terima kasih kepada semua
sesetengah daripada kami telah menyumbang kepakaran
Lembaga Pengarah yang terdahulu mahupun yang kini,
dan pengetahuan selama bertahun-tahun lamanya.
pihak Pengurusan dan juga kakitangan KLK. Saya pasti
Bagi pihak Lembaga Pengarah, saya ingin mengambil bahawa Lembaga Pengarah akan kekal komited dalam
kesempatan ini untuk mengenang rakan sekerja kami, mengukuh dan memajukan Kumpulan ini. Saya berharap
Allahyarham Tan Sri Azlan bin Mohd Zainol, yang telah agar KLK akan meneruskan kesinambungan kejayaan
meninggal dunia pada Januari 2023. Tan Sri Azlan telah di masa hadapan.
berkhidmat sebagai ahli Lembaga Pengarah sejak tahun
2013 dan telah banyak menyumbang kepada Kumpulan
KLK. Kami akan sentiasa menghargai persahabatan dan
dedikasi beliau akan terus kami kenangkan. Al-Fatihah.
OUR OR GANIS ATION
MANAGEMENT DISCUSSION & ANALYSIS
As a Group, KLK has the responsibility

to do things right. There is also the
need for flexibility and agility to ride
the wave of challenges ahead.
The Group remains cautious and
prudent on capital expenditure by
focusing mainly on those related
to productivity, efficiency, and
compliance/sustainability.
TAN SRI DATO’ SERI LEE OI HIAN

KLK has been most fortunate and indeed privileged to Truly, Tun has been an admirable father figure to KLK
have Raja Tun Alias serve on the KLK Board for more than Group and will be greatly missed. We pray that the
45 years, the last 15 to date, as our Chairman. Tun, with Almighty will bless Tun and Toh Puan with continued good
his impeccable character, social and intellectual wisdom, health and happiness.
and constant encouragement to the KLK family through
difficult periods, will leave an indelible legacy that has OVERVIEW
impacted us all. His personal touch and rapport with the
Board and key leaders, trusting them to do the right thing, The persisting global challenges have affected almost
has inspired their full commitment to the KLK Group and all businesses and communities in every corner of the
its values. Personally, my family has been blessed by world. The Group is also trapped in a vicious cycle of
his guidance for three generations, having worked closely high business costs and muted demand, resulting
with my father, being a mentor to me and now imparting his in lower profits. Rising inflation, all-time high interest
insights to our third generation. rates and geopolitical risks brought about by the recent
Israel-Palestine conflict in addition to the continuing war in
In the Plantation industry, his vision, unwavering desire to Ukraine, significantly elevated macroeconomic uncertainty.
uplift the impoverished, putting service before self, had
contributed immensely to the successful development The Group went through a series of challenges in FY2023;
of FELDA. from catching up on backlog of work in its estates, to tepid
global demand for downstream products due to prolonged
Although Raja Tun Alias will be retiring at the conclusion destocking and spot buying by customers.
of the forthcoming AGM, we remain forever grateful for
his steady oversight of KLK’s expansion and related Closer to home, the palm oil market has normalised,
diversification. Our Board and Management stand in good closer to FY2021 levels. We do not expect to enjoy the
stead as beneficiaries of his wide experience, generously exceptional profits due to high crude palm oil (“CPO”)
shared during his many visits on the ground to our prices as seen in the past two years. CPO prices fell to
operating centres. We value his sincerity, humility, about RM4,000/mt at the beginning of 2023, then steadied
gentleness and business acumen which will always be an between RM3,300 to RM3,800 for most parts of the year.
example for us to emulate.
Palm oil exports for both Malaysia and Indonesia fell Hence, the Group’s exposure to interest rate risks is
behind at least for the first half of 2023 on the back of weak limited to the short-term loans with floating interest
global economics and softer demand from key importing rates, which are meant for working capital financing.
countries that experienced diminished foreign exchange We continue to focus on normalising our debt-to-equity
reserves, encumbered by devastating conditions of high ratio to further strengthen our balance sheet in FY2024
inflation, slowing growth and weakening currencies. and beyond.
There is an urgent need for the Group to increase yields The pre-tax profit contribution from Plantation segment
to mitigate inflation. We cannot, and should not, rest on dropped 46% to RM1.164 billion in FY2023 from
our laurels while expecting better profits. We need to push RM2.139 billion in FY2022, mainly due to lower CPO and
for better yields as production costs increase. This is the palm kernel (“PK”) selling prices and higher cost of
only way forward, for both the sustainability and growth of production. Overall, average CPO and PK prices realised
our core businesses. We need to identify areas for for FY2023 were RM3,639/mt (FY2022: RM4,227/mt)
improvements and do it efficiently. “Back to Basics” – and RM1,841/mt (FY2022: RM2,972/mt) respectively.
improve efficiency, improve productivity to manage costs The results have also been hampered by an impairment
while keeping to high replanting standards - will ensure of plasma receivables associated to KLK Sawit
a better outcome. We have seen a slight improvement in Nusantara Bhd (“KSN”) of RM60.5 million.
our Group oil yield at 4.36 mt/ha in FY2023 (4.20 mt/ha
in FY2022) and expect to see more improvements in the The total fresh fruit bunches (“FFB”) production improved
coming year. by 5% to 5.25 million tonnes in FY2023, compared to
4.99 million tonnes in FY2022. The production volume
The wet La Niña weather in Malaysia and Indonesia increased mainly due to improved estate operation
resulted in a challenging 1QFY2023, while the onset of management, such as pruning and upkeep of field
especially hot and dry El Niño further raised concerns work following the return of guest workers during the
on production and by extension, price expectations financial year. In addition, the 13% improvement in FFB
particularly for the latter part of 2023 and into 2024. production from KSN, which has a total planted area of
59,761 hectares, indicated that the operational integration
As a Group, KLK has the responsibility to do things right. has worked out well. Management is working towards
There is also the need for flexibility and agility to ride the further improving estate operational efficiency and
wave of challenges ahead. The Group remains cautious focusing on optimising harvesting, ensuring insignificant
and prudent on capital expenditure by focusing mainly on crop losses and improved crop quality.
those related to productivity, efficiency, and compliance/
sustainability.
PERFORMANCE
For the financial year under review, the Group’s profit

before tax (“PBT”) totalled RM1.152 billion, 64% lower
compared to RM3.219 billion reported for FY2022.
Similarly, the Group reported lower net profit attributable
to equity holders of RM834.3 million in FY2023, 62%
lower than RM2.166 billion reported in FY2022.
The decrease was due to significantly lower contribution
from all business segments, particularly the Plantation and
Manufacturing segments, which contributed the majority
of the Group’s profit.
The efforts of the major economies to quell inflation have

sent long-term interest rates to the highest level, putting
a lot of stress on the balance sheet. As at 30 September
2023, the Group’s net debt-to-equity ratio stood at
46% (FY2022: 41%) with approximately 70% of the
FFB delivery at Ladang Tuan Mee in Selangor, Malaysia
borrowings being long-term with fixed interest rates.
OUR OR GANIS ATION
The Manufacturing segment achieved a pre-tax profit of The Group’s Western Australian farms have 45,555 hectares
RM264.7 million in FY2023, a significant drop of 75% of arable land, of which 82% is dedicated to barley,
against last year’s record pre-tax profit of RM1.071 billion. canola, wheat and other crops such as vetch. This
The weaker performance was primarily due to substantially segment recorded a softer profit of RM29.2 million in
lower contribution from the Oleochemical sub-segment. FY2023 compared to RM37.0 million in FY2022 mainly
The prevailing macroeconomic conditions continue to due to higher production costs e.g. fertiliser cost and
pose significant challenges especially in Europe, where adverse weather conditions. The limited soil moisture due
high energy costs and sluggish demand persist. KLK to prolonged drought has suppressed pasture growth.
Emmerich closed the financial year with a loss of
approximately RM251.8 million. Strategic restructuring CORPORATE
is being carried out in Europe to address the challenges,
involving a one-off cost of approximately RM70.6 million, Our associate, Synthomer, a speciality chemical
which has been recognised in the current financial year. company, had another challenging year as a result of the
The economic recovery in China is slower than expected continuous destocking in nitrile butadiene rubber for the
with tough competition from new entrants into the disposal gloves market, subdued end-market demand and
oleochemical market, though China is expected to recover increased competition in some base chemical products.
ahead of Europe. To navigate the challenging environment, Synthomer
has been undertaking initiatives in streamlining its
Notwithstanding the macroeconomic challenges and businesses and taking actions to preserve cash and
stiff competition, strategic initiatives are underway manage debt. In October 2023, Synthomer completed a
to mitigate operational challenges and the Group is £276.0 million rights issue exercise which was fully
exploring opportunities to lower energy intensity. The subscribed. The rights issue entailed i) share consolidation
other Manufacturing sub-segments i.e. rubber gloves of 20 existing Synthomer shares into 1 new Synthomer
and engineered hardwood flooring have not been share and ii) 6 for 1 rights issue of 140.2 million new
spared from the economic backlash. Both multiple and Synthomer shares at an issue price of 197 pence.
single-use glove market may have hit the bottom The rights issue enabled Synthomer to reduce its
amid market consolidation and destocking, but there leverage, deliver its long-term value creation plan and
will likely be a prolonged journey to profitability. The reduce downside risks from near-term macroeconomic
hardwood flooring business also registered an impairment uncertainty. KLK subscribed to all its rights issue
on aged inventories of approximately RM4.6 million. entitlements of 37.7 million new Synthomer shares, as
Synthomer is a long-term strategic investment and a
The Property division continues to contribute steadily fundamentally strong company. KLK’s shareholding
to the Group, with launches in Bandar Seri Coalfields in Synthomer increased to 26.9% as at 9 November
and Caledonia, the affordable range development. 2023, from 26.3% on 30 September 2022. Following
Pre-tax profit recorded was 13% lower at RM61.5 million the successful rights issue, Synthomer is expected to
against RM70.9 million in FY2022 despite higher revenue become a more focused, more resilient and higher quality
recorded of RM218.1 million in FY2023, or a 12% increase speciality chemical company.
compared to FY2022.
Sustainability
KLK has been further intensifying our commitment in Sustainability in recent years. We are one of the founding members
of Roundtable on Sustainable Palm Oil (“RSPO”) as well as extensively certified for International Sustainability & Carbon
Certification (“ISCC”), Indonesia Sustainable Palm Oil (“ISPO”) and Malaysian Sustainable Palm Oil (“MSPO”), and
committed to No Deforestation, No new development on Peat and No Exploitation (“NDPE”) since 2018. We launched
our Sustainability Policy in 2014, which was then reviewed and revised in 2018 to reflect developments that have taken
place since its introduction. No doubt, Sustainability has evolved beyond certification. In fact, Environmental, Social and
Governance (“ESG”) will continue to evolve while we focus on balancing the interest and well-being of the planet, people
and business.
Further into our Sustainability journey, we unveiled KLK’s Sustainability Commitments in FY2023, covering seven areas
of carbon management, product carbon footprint development, human rights, safety, traceability, corporate responsibility
and conservation and biodiversity.
We see Sustainability as a strategic growth driver to make KLK a trusted global partner to our stakeholders, by prioritising
value-addition, innovation, competitiveness and becoming a preferred employer.
Aim for Aim for Aim for
25% CO2
100% 50
reduction in greenhouse gas emission Traceability to Plantation for Refineries products with product carbon footprint
intensity by 2029/2030 (compared to & Kernel Crushing Plants and to Mill data by 2025
2018/2019) and net zero emissions for Oleochemical Plants
by 2050 (Scope 1 and Scope 2)
KLK SUSTAINABILITY COMMITMENTS

Continue to invest in education, Maintain zero tolerance of Aim for zero fatalities and Safeguard biodiversity
environment, community and forced and child labour reduce Loss Time Injury by through conservation and
employee development 25% on average by 2025/2026 continued commitment to
(compared to 2019/2020) NDP, HCS and HCV
Note: Greenhouse gas emission intensity - based on production volume; NDP - No Deforestation, No new development on Peat; HCV - High Conservation
Value; HCS - High Carbon Stock
SOME OF THE AWARDS and recognitions received by KLK in 2023
The Edge Billion Malaysia’s The Global CSR & ESG The Edge Malaysia
Ringgit Club 2023 Best Managed Awards 2023 Affordable Urban Housing
Companies 2023 Excellence Award 2023
• BIG CAP COMPANIES: Highest Growth • Best Community Programme
in Profit After Tax Over Three Years an initiative by – Silver Hibiscus 3, Bandar Seri Coalfields
• PLANTATION: Highest Growth in Profit Deloitte Private • Excellence in Provision of KLK Land
After Tax Over Three Years Literacy & Education – Silver
OUR OR GANIS ATION
FINANCIAL REVIEW
GROUP HIGHLIGHTS
2023 2022 2021 2020 2019

FINANCIAL
Revenue (RM’000) 23,647,586 27,149,474 19,915,796 15,595,956 15,533,887

Profit:
- before taxation (RM’000) 1,152,227 3,219,478 2,976,425 1,185,730 823,928
- attributable to equity holders of

the Company (RM’000) 834,259 2,166,290 2,257,584 772,604 617,505
Earnings per share (sen) 77.4 200.9 209.3 72.0 58.0
Dividend per share (single tier) (sen) 60.0 100.0 100.0 50.0 50.0
Net tangible assets (RM’000) 13,914,126 13,933,659 11,510,938 10,478,396 10,021,488
Net tangible assets per share (RM) 12.9 12.9 10.7 9.7 9.4
KEY CORPORATE RATIOS

Dividend Yield(1) (%) 2.8 4.8 5.0 2.2 2.2
Dividend Payout Ratio(2) (%) 77.5 49.8 47.8 69.4 86.2
Return on Shareholders’ Equity (3)
(%) 5.8 15.2 19.0 7.1 6.0
Return on Total Assets(4) (%) 3.3 8.1 8.7 4.1 3.2
Net Debt to Equity (5)
(%) 45.8 40.7 37.3 21.6 25.0
(1) Based on Dividend expressed as a percentage of KLK Share Price as at 30 September

(2) Based on Dividend expressed as a percentage of Basic Earnings Per Share
(3) Based on Net Profit attributable to Equity Holders expressed as a percentage of Total Equity attributable to Equity Holders
(4) Based on Profit for the year expressed as a percentage of Total Assets
(5) Based on Net Debt (being Total Borrowings less Short Term Funds and Cash and Cash Equivalents) expressed as a percentage of Total Equity
5-YEAR FINANCIAL STATISTICS
2023 2022 2021 2020 2019

RM’000 RM’000 RM’000 RM’000 RM’000
REVENUE
Plantation 3,421,324 4,082,366 2,646,618 1,997,467 1,695,557
Manufacturing 19,692,087 22,605,225 16,828,378 13,208,870 13,406,080
Property development 218,106 195,199 195,070 154,884 170,359
Investment holding 121,391 95,222 96,088 145,071 117,765
Others 194,678 171,462 149,642 89,664 144,126
23,647,586 27,149,474 19,915,796 15,595,956 15,533,887
GROUP PROFIT
Plantation 1,164,139 2,139,058 1,350,960 632,248 339,079
Manufacturing 264,660 1,070,570 916,448 496,271 441,175
Property development 61,522 70,858 68,800 54,038 47,355
Investment holding (342,073) (48,138) 167,724 (37,008) 8,731
Others 29,223 35,729 26,788 (19,281) 25,783
Corporate (25,244) (48,599) 445,705 59,462 (38,195)
Profit before taxation 1,152,227 3,219,478 2,976,425 1,185,730 823,928
Tax expense (161,530) (781,121) (524,373) (328,681) (173,195)
Profit for the year 990,697 2,438,357 2,452,052 857,049 650,733
Attributable to:
Equity holders of the Company 834,259 2,166,290 2,257,584 772,604 617,505
Non-controlling interests 156,438 272,067 194,468 84,445 33,228
990,697 2,438,357 2,452,052 857,049 650,733
OUR OR GANIS ATION
2023 2022 2021 2020 2019

RM’000 RM’000 RM’000 RM’000 RM’000
ASSETS
Property, plant and equipment 12,905,633 12,123,317 11,014,851 7,656,584 7,749,121
Right-of-use assets 1,325,678 1,338,533 1,316,628 868,435 –
Prepaid lease payments – – – – 340,256
Investment property 23,503 – – – –
Inventories – Land held for property
development 2,012,424 1,991,597 2,035,257 1,096,046 1,108,296
Goodwill on consolidation 351,725 336,241 327,417 326,345 316,836
Intangible assets 52,885 17,142 20,907 22,324 22,081
Investments in associates 2,288,845 2,366,997 1,777,894 1,544,951 1,489,210
Investments in joint ventures 66,063 215,962 179,649 145,783 156,818
Other investments 745,242 595,711 598,959 416,150 411,950
Other receivables 394,069 425,925 444,389 228,269 233,980
Deferred tax assets 478,365 322,289 338,660 367,758 437,027
Derivative financial assets 1,249 – – – –
Current assets 9,480,710 10,504,811 10,022,820 8,273,654 8,133,791
Total assets 30,126,391 30,238,525 28,077,431 20,946,299 20,399,366
EQUITY
Share capital 1,382,683 1,379,249 1,375,695 1,373,861 1,067,790
Reserves 12,958,161 12,932,297 10,510,376 9,466,651 9,306,062
Cost of treasury shares (22,108) (24,504) (26,809) (13,447) (13,447)
Total equity attributable to equity holders of
the Company 14,318,736 14,287,042 11,859,262 10,827,065 10,360,405
Non-controlling interests 1,825,023 1,764,780 2,347,778 977,035 926,250
Total equity 16,143,759 16,051,822 14,207,040 11,804,100 11,286,655
LIABILITIES
Deferred tax liabilities 1,076,632 1,098,679 965,959 452,690 424,603
Lease liabilities 155,095 158,322 133,457 139,856 –
Deferred income 81,633 90,149 98,465 106,564 110,320
Provision for retirement benefits 535,302 482,598 559,576 545,568 538,480
Borrowings 7,002,610 7,208,861 5,612,880 5,110,442 5,169,833
Derivative financial liabilities 21 – – – –
Current liabilities 5,131,339 5,148,094 6,500,054 2,787,079 2,869,475
Total liabilities 13,982,632 14,186,703 13,870,391 9,142,199 9,112,711
Total equity and liabilities 30,126,391 30,238,525 28,077,431 20,946,299 20,399,366
SHAREHOLDERS’ EARNINGS AND

DIVIDENDS
Earnings per share (sen) 77.4 200.9 209.3 72.0 58.0
Share price at 30 September (RM) 21.40 20.70 20.12 22.80 23.08
Dividend per share (sen) 60.0 100.0 100.0 50.0 50.0
Dividend yield at 30 September (%) 2.8 4.8 5.0 2.2 2.2
P/E ratio at 30 September (times) 27.6 10.3 9.6 31.7 39.8
PLANTATION
Plantation is KLK’s core business with a landbank of
OUR FACILITIES
348,529 hectares spread across Malaysia (Peninsular
and Sabah), Indonesia (Sumatra, Belitung Island and
Kalimantan) and Liberia. Out of the 295,241 hectares Crop Processing
of planted area, about 97% is planted with oil palm. Processing of FFB is carried out at 32 of KLK’s own
Geographically, 57% of the oil palm planted area is in palm oil mills (“POMs”) of various capacities ranging from
Indonesia, 41% in Malaysia and about 2% in Liberia. 20 mt/hour FFB to 120 mt/hour FFB (depending on size
Meanwhile, rubber is planted only in Peninsular Malaysia of the supplying estates).
and makes up the remaining 3% of planted area.
Biogas
Biogas power plant is another value-add improvement
that the Plantation segment has invested in to reduce
methane gas emissions. We currently have nine power
generating biogas plants in our POMs.
Ladang Tuan Mee in Selangor, Malaysia

OUR OR GANIS ATION
TOTAL PLANTED AREA 295,241 ha
Oil Palm Malaysia Indonesia Liberia
97% 116,953 ha 164,110 ha 6,118 ha
Rubber Malaysia
3% 8,060 ha
PRODUCTION FACILITIES & CAPACITIES
FACILITIES
Palm Oil Refineries Kernel Crushing Biogas Power Filter Belt

Mills Plants Plants Press
32 POMs 5 5 9 27
CAPACITIES
From Total Refining Total Crushing Total Installed Reduces
20 to 4,200 2,055 Power
22.2 20%
120 CPO mt/day PK mt/day
mw Electricity
of total GHG
emissions in a
palm oil mill
FFB mt/hr
LOCATION OF THE GROUP’S PLANTATION OPERATIONS AS AT 30 SEPTEMBER 2023
KEDAH
45
37
3
41 Sandakan
39 40
1 46
43a
2 38 SABAH
11
43b
7 KELANTAN 44
Lahad Datu
4
10 42
6 34
9 Tawau
5
8 PERAK
PAHANG
12 35 GROUP HIGHLIGHTS
14 Ipoh Head Office
SELANGOR
13 Kuala 3336 32
Lumpur
32 5
15
18
NEGERI
SEMBILAN
16
19 17
Palm Oil Kernel
31 Mills Crushing
20 21
29 Plants
26
22
3
27 24
JOHOR 28 30
5
Refineries Rubber
23
Factories
25
9
Biogas Power Plants
MALAYSIA
KEDAH NEGERI SEMBILAN PAHANG 43. Lahad Datu Region

1. Batu Lintang 16. Ayer Hitam 32. Kemasul 43a. Bornion
2. Buntar 17. Batang Jelai 33. Renjok Segar Usaha
3. Pelam 18. Gunong Pertanian 34. Selborne 43b. Bukit Tabin
19. Jeram Padang 35. Sungei Kawang Lungmanis
PERAK 20. Kombok 36. Tuan Rimmer
4. Allagar 21. Ulu Pedas Sungai Silabukan
5. Changkat Chermin KELANTAN Tungku
6. Glenealy JOHOR 37. Kerilla 44. KLK Premier Oils
7. Kuala Kangsar 22. Ban Heng 38. Kuala Gris 45. Sugut Region
8. Lekir 23. Fraser 39. Kuala Hau Berakan Maju
9. Raja Hitam 40. Pasir Gajah Excellent Challenger I
24. Kekayaan
10. Serapoh 41. Sungai Sokor Excellent Challenger II
25. KL-Kepong Edible Oils
11. Subur Rakanan Jaya North
26. Landak
SABAH Rakanan Jaya South
27. Paloh
SELANGOR Sungai Sabang
28. See Sun 42. Tawau Region
46. Sandakan Region
12. Changkat Asa 29. Sungai Bekok Jatika
Desa Talisai North
13. Fajar Palmkel 30. Sungei Penggeli Pang Burong
Desa Talisai South
14. Kerling 31. Voules Pangeran
Meliau
15. Tuan Mee Pinang
Minat Teguh
Ringlet
Sijas
Sigalong
Sri Kunak
Tundong
OUR OR GANIS ATION
NORTH
KALIMANTAN
KALIMANTAN 67
64 Tanjung
60 Redeb
62
63
61 66
EAST
Medan
54 KALIMANTAN
65
NORTH SUMATRA
57
51 59 Sampit
58
53
52
Pekanbaru
CENTRAL
RIAU
KALIMANTAN Tanjung
Pandan 48
SUMATRA 49 50
BANGKA BELITUNG 47
ISLANDS
55
Palembang
SOUTH SUMATRA 56 LIBERIA
LAMPUNG
68
Bandar
Lampung
INDONESIA LIBERIA
SUMATRA South Sumatra 68. Palm Bay Estate

Bangka Belitung 55. Pinang Witmas Sejati
47. Alam Karya Sejahtera Lampung
48. Bumi Makmur Sejahtera Jaya 56. Prima Alumga
49. Parit Sembada
50. Steelindo Wahana Perkasa KALIMANTAN
Central Kalimantan
Riau 57. Karya Makmur Abadi
51. Mandau 58. Menteng Jaya Sawit Perdana
52. Nilo 59. Mulia Agro Permai
53. Sekarbumi Alamlestari East Kalimantan
North Sumatra 60. Hutan Hijau Mas
54. Basilam 61. Indonesia Plantation Synergy
Bekiun 62. Jabontara Eka Karsa
Bukit Lawang 63. Karya Bakti Sejahtera Agrotama With Palm Oil Mill
Gohor Lama 64. Malindomas Perkebunan
65. Putra Bongan Jaya With Kernel Crushing Plant
Maryke
Padang Brahrang 66. Sinergi Agro Industri With Refinery
Tanjung Beringin North Kalimantan With Rubber Factory
Tanjung Keliling 67. Primabahagia Permai
With Biogas Power Plant
PLANTATION AREA STATEMENT

2023 2022
% %
% OF TOTAL % OF TOTAL
AGE IN UNDER PLANTED UNDER PLANTED
YEARS HECTARES CROP AREA HECTARES CROP AREA
OIL PALM
4 to 9 67,303 23 62,648 22
10 to 18 115,338 40 118,440 41
19 and above 74,998 27 72,782 25
Mature 257,639 90 87 253,870 88 85
Immature 29,542 10 10 35,780 12 12
Total 287,181 100 97 289,650 100 97
RUBBER
6 to 10 405 5 288 3
11 to 15 1,739 22 1,717 21
16 to 20 1,819 23 1,835 22
21 and above 2,176 26 1,929 23
Mature 6,139 76 2 5,769 69 2
Immature 1,921 24 1 2,564 31 1
Total 8,060 100 3 8,333 100 3
TOTAL PLANTED AREA 295,241 100 297,983 100

Plantable Reserves 17,936 17,868
Conservation Areas 24,949 27,640
Building Sites, etc. 10,403 11,994
Grand Total 348,529 355,485
OUR OR GANIS ATION
OIL PALM PLANTED AREA/FFB PRODUCTION
300,000 4,994 5,254 5,500
240,000 4,104 3,949 4,500

3,929
180,000 3,500
120,000 181,083 177,710 235,583 253,870 257,639 2,500
60,000 1,500
32,294 35,701 39,454 35,780 29,542

0 0
213,377 ha 213,411 ha 275,037 ha 289,650 ha 287,181 ha
(Hectares) (‘000 mt)
2019 2020 2021 2022 2023
FFB Production Planted Area – Immature Planted Area – Mature

(’000 mt) (hectares) (hectares)
RUBBER PLANTED AREA/RUBBER PRODUCTION
12,500 12,500
10,786
10,354
10,000 10,000
8,105
7,500 7,500
6,162
5,439
5,000 5,000
8,500 7,907 6,089 5,769 6,139

2,500 2,500
2,577 2,646 2,625 2,564 1,921

0 0
11,077 ha 10,553 ha 8,714 ha 8,333 ha 8,060 ha
(Hectares) (‘000 kg)
2019 2020 2021 2022 2023
Rubber Production Planted Area – Immature Planted Area – Mature

(’000 kg) (hectares) (hectares)
5-YEAR PLANTATION STATISTICS
2023 2022 2021 2020 2019

OIL PALM
FFB Production
- Own estates (mt) 5,253,723 4,993,776 3,948,785* 3,929,426 4,103,861
- Sold (mt) 231,407 237,157 115,671 75,428 142,960
- Purchased (mt) 873,528 927,772 793,110 715,423 716,642
- Total processed (mt) 5,895,844 5,684,391 4,626,224 4,569,421 4,677,543
Weighted Average Hectarage
- Mature (ha) 256,523 253,357 184,271 178,562 183,108
- Immature (ha) 29,685 35,059 37,704 28,111 29,992
Total planted area (ha) 286,208 288,416 221,975 206,673 213,100
FFB yield per mature hectare (mt/ha) 20.48 19.71 21.43 22.01 22.41
CPO yield per mature hectare (mt/ha) 4.36 4.20 4.66 4.81 4.90
Mill Production
- CPO (mt) 1,255,475 1,212,417 1,006,111 999,219 1,023,484
- PK (mt) 246,666 241,362 192,316 192,139 197,147
Oil Extraction Rate
- CPO (%) 21.29 21.33 21.75 21.87 21.88
- PK (%) 4.18 4.25 4.16 4.20 4.21
Cost of Production
- FFB (RM/mt ex-estate) 400 336 270 260 260
- CPO (exclude windfall
profit levy and Sabah
sales tax) (RM/mt ex-mill) 2,229 1,952 1,509 1,465 1,456
Average Selling Prices
- CPO (RM/mt ex-mill) 3,639 4,227 3,211 2,344 1,924
- PK (RM/mt ex-mill) 1,841 2,972 2,135 1,374 1,210
Average profit per mature
hectare (RM) 4,719 8,603 7,396 3,610 1,912
RUBBER
Production
- Own estates (’000 kg) 5,439 6,162 8,105 10,354 10,786
Weighted Average Hectarage
- Mature (ha) 5,952 6,024 7,017 8,061 8,640
- Immature (ha) 2,122 2,617 2,795 3,115 3,243
Total planted area (ha) 8,074 8,641 9,812 11,176 11,883
Yield per mature hectare (kg/ha) 914 1,023 1,155 1,284 1,248
Cost of Production (sen/kg ex-estate) 871 693 574 476 484
Average Selling Prices
(net of cess) (sen/kg) 816 928 883 720 713
Average (loss)/profit per
mature hectare (RM) (4,135) (1,053) 1,173 (486) (233)
* Includes one month of KSN production of 99,049 mt.

OUR OR GANIS ATION
SEGMENTAL FINANCIAL PERFORMANCE
Plantation Segment
Our Plantation segment’s pre-tax profit came in at RM1.164 billion compared to RM2.139 billion in FY2022. The lower
profit was primarily attributable to lower selling prices of CPO and PK, averaging at RM3,639/mt and RM1,841/mt
respectively. After falling to about RM4,000/mt at the beginning of 2023, CPO prices traded within a tight range between
RM3,300/mt to RM3,800/mt for most part of the year.
Overall, palm oil exports for both Malaysia and Indonesia fell behind at least for the first half of 2023 on the back of
weak global economics and softer demand from key importing countries that experienced diminished foreign
exchange reserves, encumbered by high inflation, slowing growth and weakening currencies. At the same time however,
CPO production in both Malaysia and Indonesia (after emerging from a two-year weak performance) did not recover as
strongly as earlier expected either, lending critical support to prices.
Change
Average selling prices FY2023 FY2022
Palm Product (RM/mt ex-mill) (RM/mt ex-mill) (RM/mt ex-mill) %
CPO
- Group 3,639 4,227 (588) -14%
- Malaysia 4,219 4,774 (555) -12%
- Indonesia 3,281 3,813 (532) -14%
Our Indonesian CPO sales prices also averaged lower, adjusting for export duty and levy. Coupled with slower utilisation
emerging from local refineries there, our achieved CPO prices there lagged further behind Malaysian prices. Notably,
the onset of El Niño further raised concerns on production and by extension, price expectations particularly for the latter
part of 2023 (and especially for next year). However, global oilseeds production is set to grow to 660.0 million tonnes
next season (compared to 630.0 million tonnes the current season) with growth mainly from soybeans, hence keeping up
its competition with palm and casting some doubts on the optimism on prices, at least for now.
Operational Performance (c) Poor fruit set due to less than desirable pollination
especially in young mature palms, mainly attributed
It was a very challenging year globally and the Group’s
to continuous large scale and contiguous blocks with
Plantations Division was not spared especially in terms of
insufficient male inflorescence and pollinating weevils.
ultra-high cost of inputs (fertilisers, fuel, agrochemicals),
Continued extreme weather also negatively influence
increasing cost of labour (hike in minimum wages
this situation including in Sabah, Riau and Belitung
in Malaysia), weather extremities (very wet and later
regions. New strategies including addressing replanting
changing to very hot and dry El Niño) but with downward
design, promoting palm and field diversity, use of
CPO price trend. These posed numerous challenges
pheromones as well as preserving male inflorescence
to Management, resulting in a high cost of production
and weevils have been instituted. In extreme cases,
and at significantly reduced margins. Profits were also
assisted pollination will be considered albeit in limited
affected, and the need to take on penalties for sale of
areas and only at certain periods due to high labour
off-spec CPO carried from FY2022, complicated the
requirement.
situation. At certain periods, managing cash flow was
a challenge in some regions. (d) Mealy bugs issue especially in Tawau/Sabah region
resulting in rather severe conditions of sooty mould on
In order to mitigate the above and minimise the impacts,
palm canopies, which affected the ability of palms to
our plantations need to further increase average yields
photosynthesise optimally. Trials to control mealy bugs
from 20.5 mt/ha in FY2023 (19.7 mt/ha in FY2022) and
that have been carried out showed positive results on
target to achieve our estimates of almost 23.0 mt/ha in
improved palm photosynthesis with lower incidences
FY2024 which is challenging, but certainly not impossible.
of sooty mould. We are in the process of obtaining
This is because main yield limiting factors have been clearly
approvals for wider intervention of mealy bugs, with the
identified for each region and site-specific strategies have
help of relevant government agencies, which should
been drawn up and implementations have begun in part
then improve the current ultra-low average yields in
during FY2023.
that region of close to 20,000 hectares. Average yields
in this region dropped from a low of 17.7 mt/ha in
FY2022 to a new low of 16.1 mt/ha in FY2023 when in
the past, yields exceeding 25 mt/ha were achieved.
(e) Marked palm loss due mainly to basal stem rot of
Ganoderma boninense especially in the older age
category, mainly attributed to previous less stringent
procedures in sanitation and disease handling
protocols. These have been strengthened with
continued training and monitoring which should
reduce incidences whilst further evaluation of newer
tolerant planting materials and biocontrol agents are
Mechanised crop evacuation in Ladang Kekayaan field tested.
(f) Strong and sound practices from regions which have
Some of the factors limiting our yields that were identified good performances or yields would be replicated.
and strategies taken include: For example, we have more than 30,000 hectares of
our plantations in parts of Sabah, Medan, Belitung
(a) Less desirable field standards in particular those
and Kalimantan Timur producing around 6 mt/ha of oil
related to harvesting operations due to earlier
or more and sound practices from these operating
insufficient workforce but as the situation progressed,
centres are being used as benchmarks to further
these were not rectified and mainly attributed to lapse
drive operational excellence in others.
in supervision. This is being addressed by ensuring
availability of sufficient skilled workforce, besides Doing things right from the start; by addressing key issues
stepping up and improving field supervision. limiting yields, improving efficiency, increasing productivity,
managing costs while ensuring high standards in field
(b) Poor drainage and not optimum water management in
operations and replanting are paramount in pushing our
our alluvial flats, coastal plains and organic soils made
plantations towards better outcomes and yields. In other
worse with continued high rainfall and occasions of
words, “Back to Basics” operations such as working
bund collapse in the previous years. Science based,
towards optimum harvesting rounds, achieving the
data driven strategies in managing such soils have
highest crop quality, ensuring every bunch and loose fruit
been strengthened and implemented using in-house
is harvested and collected and keeping mill losses to the
derived colour codes and proper land surveying tools
minimum in addition to ensuring every palm is well taken
for easier, clearer field monitoring, decision making and
care of in terms of drainage, nutrition, pest and disease are
overall improved water management.
continuously echoed throughout all levels of management.
OUR OR GANIS ATION
Highlights of some key initiatives taken in By addressing the key issues related to lack of
FY2023 which will be further enhanced in labour which were limiting yields in our more recent
FY2024 are discussed below: acquisitions such as backlog pruning, poorer
harvesting standards in addition to improving access
1. Towards Operational Efficiency Post and roads, we note that Fresh Fruit Bunches (“FFB”)
Normalisation yields in KLK Sawit Nusantara (“KSN”) have increased
We were indeed fortunate that as soon as borders by 13% whilst that of PT Pinang Witmas Sejati
were opened and travel resumed post pandemic, (“PT PWS”) have crossed the 20 mt/ha level in
we were able to quickly fill up our worker vacancies FY2023. The positive effects of post operational
in Peninsular Malaysia with guest workers, and with integration for these acquisitions are expected to
workers from other provinces in Kalimantan and our further improve in FY2024.
newer acquisitions in Indonesia. In fact, the number In addition to filling in worker vacancies, we also
of guest workers in oil palm areas in Peninsular launched a multi-level approach to improve and
Malaysia had normalised by early 2023 whilst those enhance our field supervision. The end objective is
in various parts of Indonesia, from June 2023. to work towards harvesting optimally ripe bunches,
minimising or working towards zero crop losses and
We are working closely with a local company in
achieving targeted yields and oil extraction rates
Indonesia to recruit workers for both Malaysia and
(“OER”) amongst others.
Indonesia with the objective of eliminating the risk
of illegal payments being made during the process,
as per KLK’s no recruitment fee policy.
With numbers filled, the main focus was to clear
and update the numerous backlog field work such
as upkeep, pruning and harvesting and steer our
plantations back towards normalcy of operations,
instead of making do with suboptimal standards
in the recent past due to insufficient workers.
Workers, especially harvesters were given training
and/or retraining as many were new, unskilled and
inexperienced, adequately incentivised to improve Replanting in Ladang Silabukan, Sabah
their out turn and productivity and also offered
numerous options and packages with the objective to 2. Replanting and early yields
retain the more skilled ones. In FY2023, the Group has replanted approximately
10,000 hectares, significantly higher than the
6,000 hectares replanted in FY2022. The latter was
below the norm due to deferment of replants following
higher palm prices then. With more normalised
CPO prices, the Group will focus on more consistent
replanting and will look at prioritising replanting of
fields with lower yields due to lower density.
For example, our Peninsular Malaysia estates have a
high percentage of old palms, at about 24,000 hectares
or 48%. Some of the older palm areas have low
density due to rather severe Ganoderma. In such areas
of low yields and low palm density, our priority is to
Students of Sekolah Dasar Swasta KLK, Mandau replant them earlier, rather than later. The same goes
for our plantations in Belitung (66%) and Riau (53%)
We also identified “nine pillars” for better worker regions where a larger percentage of our palms are in
retention which include improved living conditions the older category.
and facilities of housing, schools, electricity and To address increased incidences of Ganoderma, not
water, lower cost of living especially daily necessities only timely census and sanitation of infected palms
and very importantly internet connectivity or are needed to minimise further spread of the disease,
communications. It is anticipated that the above, but more importantly during land preparation,
along with stronger yields and worker earnings will sanitation by deboling every palm is diligently carried
stabilise our workforce, motivate them and in return, out to reduce disease inoculum and minimise risk of
produce better performances in our plantations. infection in the next generation.
The dominant areas of replanting are mainly in Sabah, conditions with light ferns, avoiding bare ground
Peninsular Malaysia, Belitung, Riau and Palembang. conditions, cultivating good growing legumes and
In Sabah, the focus will progressively move towards other ways of building up biomass, we are increasingly
Sugut as most of the areas in Lahad Datu and giving more prominence to selected usage of
Sandakan are at the tail end of replanting. biofertilisers especially those from well researched
entities e.g. our in-house biofertilisers produced
With much improved protocols, standards and
from Applied Agricultural Resources Sdn Bhd (“AAR”).
experience, our replants albeit a few exceptions have
seen good quality, uniform and precocious growing In hillier sections, where access was previously poorer
palms and many are able to achieve our initial targets or have deteriorated due to erosion, we will either cut
of 20 mt/ha of FFB in their first year of harvesting. new “mini terraces” or widen existing ones and connect
This is in line with our objectives of achieving high as much of these to the roads in order to facilitate
replanting standards, with fast ascending yields and mobility of workers and supervisors. Where possible,
high sustainable peak yields. palm by-products will also be applied especially if the
soils in the hilly sections are poorer in nature.
Nevertheless, some of our replants in Sabah, Riau
and Belitung, despite achieving good growing palms, Our continuous training in handling pest in our
have not breached the 30 mt/ha FFB level in plantations including carrying out timely and
subsequent years. These were mainly due to issues target-centric census, site-specific treatment and
with poor pollination as discussed earlier. A multi- post treatment census are bearing fruit with no major
angled approach to address this very critical limitation outbreaks of leaf-eating caterpillars, etc reported
has been taken, further strengthening our current in the financial year. Severity of rat damage should
replanting protocols. It is anticipated that poor also reduce, including in areas which have endemic
pollination may still be an issue in the near term, but problems with rats such as in Belitung, with better
should reduce in severity with the improved approach. handling of census-treatment-census. As mentioned
earlier, we now also need to resolve the mealy bugs
3. Improved conditions for enhanced palm
– sooty mould issue in Tawau/Sabah region. Method
growth and yields
to control this insect is now available and we are in
More recently, we have further increased our attention progress to obtain approvals to use the insecticide
towards water management in our alluvial flats, coastal via trunk injection.
soils and more importantly in the acid sulphate and
organic soil areas in view of more extreme weather
in the past 2-3 years. This is to ensure that in normal
alluvial and coastal soils, water level is kept low in
order for better root proliferation, increased fertiliser
efficiency, improved mobility and access, etc.
In the latter two soil types (acid sulphate and organic
soils), water levels are managed as per best practices
to prevent or minimise negative effects of hyperacidity
in the former whilst in the latter, to prevent irreversible
drying and at the same time to provide adequate
amounts of drainage for optimal palm growth. New workers’ housing in Ladang Changkat Asa, Perak
In anticipation of a strong El Niño, we have minimised

4. Further enhancement of workers’
issues with over draining, reduced impacts of water
housing
deficits and to a certain extent lowered our risk of fire
during the peak of the hot and dry season. With the Our workers are our greatest asset and despite the
onset of wetter weather and in preparation for higher challenging year, the Group remains committed in
rainfall, our weirs have been repositioned downwards continuing its efforts to provide them with better living
and excess water removed. environment, in turn making KLK an employer of
choice.
As we have sizeable areas of marginal soils especially
in Peninsular Malaysia and parts of Indonesia, KLK followed through with its initiative for the
co-application of biofertilisers and palm by-products Plantation workers’ housing project involving slightly
in concomitant with fertilisers are given high emphasis over 1,700 houses in various categories, which
to mitigate poorer growing conditions, improve soil includes building new houses and upgrading existing
structures and reduce impacts of the inherent soil ones. We started off this project in the Southern region
limitation. Along with other efforts to conserve and of Peninsular Malaysia, both building new houses
protect our soils such as encouraging good ground and renovating existing ones totaling about 500 units.
OUR OR GANIS ATION
We are pleased to share that the Group has also high machine productivity (ranging from 20 to over
decided to further improve worker housing in Sabah 40 ha/day/machine) and most importantly is able to
and Indonesia and expect to invest over RM90 million produce an “as-applied fertiliser map” which can be
in this three-year project across our operations in superimposed on Google Earth map. The latter is
Malaysia and Indonesia. This is a true testament to important for us to ensure that every palm is applied with
KLK’s continued investment in the betterment of its recommended share of fertilisers and if it was not,
our workers. Management will need to carry out corrective actions.
This technology increases labour productivity
significantly and also results in better fertiliser
efficiency. The Group currently has over 100 units of
this Smart Spreader. The use of Verion will continue
to be extended in Indonesia and Sabah along with
battery powered wheelbarrows; the latter more for
crop evacuation in areas where machines are
not suitable i.e. hilly terrain or very soft ground
conditions. We are also expanding the use of smaller
HP tractors for infield collection, such as those of
28-30 hp to replace the aging fleet of mechanical
Mechanised fertiliser application with Verion Smart Fertiliser Spreader
buffalo, aslo implemented 50 hp mini tractor grabber
5. Continued emphasis on mechanisation in-field FFB collection system.
An integral strategy to optimising labour is to focus

on using appropriate machines which, if implemented
correctly, can improve both labour and machine
productivity across the Group. Operations that have
been mechanised include fertiliser applications, upkeep
operations and most importantly crop evacuation.
In FY2023, we have also expanded the use of
Verion Smart Fertiliser Spreader to Indonesia. This
technology-driven Smart Spreader not only applies
fertilisers better than manual methods and most other
Mulching application in Ladang Kekayaan in Johor, Malaysia
machines, but also tracks productivity. It also has
Age Profile of Palms as at 30 September 2023
GROUP FY2023 MALAYSIA FY2023 INDONESIA FY2023

287,181 ha 116,953 ha 164,110 ha
10% 16% 7%
27% 20%
21%
36%
23%
25%
40%
52%
23%
Immature 29,542 ha 10% Immature 18,668 ha 16% Immature 10,874 ha 7%

4-9 years 67,303 ha 23% 4-9 years 29,889 ha 25% 4-9 years 34,536 ha 21%
10-18 years 115,338 ha 40% 10-18 years 26,730 ha 23% 10-18 years 85,368 ha 52%
19 years & above 74,998 ha 27% 19 years & above 41,666 ha 36% 19 years & above 33,332 ha 20%
Weighted Average Age of Palms Weighted Average Age of Palms Weighted Average Age of Palms
13.2 years 12.8 years 13.6 years
At present, 63% of our planted area are in the favorable age profile with young and prime palms (ranging between 4 and
18 years), in particular in our Indonesia estates. The immature palm trees area has dropped from 12% to 10% in FY2023.
Research and Development if successful will reinforce our objectives to “produce

more with less” as well as minimise environmental impacts.
Research & Development (“R&D”) is vital in the Group’s
efforts to continuously improve its agricultural practices On the technological front, in-house systems to count
and planting materials, as well as to optimise its palms via deep learning methods with drone images have
agro-management inputs. R&D is carried out via AAR, now morphed further with the birth of another useful tool
an associate company of KLK. In Indonesia, PT Applied known as Canopy Size Index (“CSI”) map. This CSI map
Agricultural Resources Indonesia (“AARI”) is wholly owned provides an age-corrected vegetative index for oil palms
by KLK and mimics the functions of AAR. and can be used to quantify palm growth, identify
problematic areas and to assist in implementing site-
Both AAR and PT AARI produce one of the most desirable
specific corrections, which aligns with the recently
planting materials (DxP AA Hybrida 1S and DxP AARI
revised leaf nutrient classification system. The revised
SK1, respectively) in the industry. AAR also produces
classification system now provides more precise
tissue culture clones and DxP AA Hybrida II with different
guidance for managing nutritional status of palms to ensure
lineages. The breeding target for Hybrida II is 10 mt/ha of oil
fertiliser recommendations are always at the optimum,
(or more).
rather than excessive.
Besides producing advanced planting materials, AAR has
identified four endophytic nitrogen-fixing (“NF”) bacteria,
which are capable of colonizing oil palm tissues. These NF
bacteria, which have the ability to fix atmospheric nitrogen,
offer a higher nitrogen fixation rate compared with other
soil-borne NF bacteria and have shown a notable 25%
reduction in fertiliser requirements in nursery trials.
By end of 2023, more than 80,000 seedlings in 14 KLK
estates in Peninsular Malaysia will be inoculated with NF
bacteria which can reduce our fertiliser requirements but
with improved palm growth and should also result in future
higher yields. This is a major breakthrough, and we are The identified four endophytic nitrogen-fixing (“NF”) bacteria have shown
preparing for larger-scale production for field testing and a notable 25% reduction in fertiliser requirements in nursery trials
New Facility update
CHANGKAT CHERMIN BIOGAS PLANT

Location
Ayer Tawar, Perak, Malaysia
Site
Changkat Chermin Palm Oil Mill, Ayer Tawar, Perak, Malaysia
Facility
Biogas Power Plant
Capacity
800m3/day POME for 2.0 MW Grid Export
Biogas Capture Plant
Status
Interconnection to the Grid (“IOD”) was conducted on 23 June
2023 with both gas engines exporting power to the TNB grid.
Description
The Biogas power generation facility was built for the
On-Grid Energy Export to TNB (Feed-in Tariff). This facility utilises
three Units of 4,300 m3 CSTR Tanks system to cater for the
Power Generation of 2.0 MW net export capacity with two Units
of MWM Engines (1.2 MW). Additional equipment such as
Desulphuriser and Dehumidifier were included. Earthworks
commenced in August 2021 and the physical completion of
Power Plant Facilities the power plant was in June 2023 at a cost of RM22.0 million.
OUR OR GANIS ATION
INTEGRATED BUSINESS VALUE CHAIN
The vertical integration between the upstream business (Plantation), midstream (Refinery) and downstream business
of Oleochemical is able to generate synergic benefits to the KLK Group. This value chain enables the Group to further diversify
into different market segments and mitigate risks of volatilities in the respective business segments.
PLANTATIONS
UPSTREAM
FRESH FRUIT BUNCHES
PALM KERNELS CRUDE PALM OIL

MIDSTREAM
Palm Kernel Palm Kernel RBD Palm RBD Palm RBD Palm Palm Fatty
Expeller Oil Olein Stearin Oil Acid Distillate
Palm Kernel RBD Palm Specialty Oils

Olein Kernel Stearin and Fats
Glycerine Fatty Methyl Biodiesels Phytonutrients

Acids Esters
DOWNSTREAM
Glyceryl Soap Imidazolines t-Amino Fatty Fatty Fatty Methyl Ester

Esters Bases Esters Esters Amides Alcohols Sulphonates
Polyamides Fatty Acid Quaternary Fatty Fatty Methyl Fatty Fatty Fatty
Alkoxylates Ammonium Ester Amide Ester Alcohol Alcohol Alcohol Ether
Compounds Alkoxylates Alkoxylates Alkoxylates Alkoxylates Sulphates Sulphates
MANUFACTURING
OLEOCHEMICAL
chain was difficult, compounded by falling prices of the

by-products. Nonetheless, the business did see a slight
increase in sales volume. Soap sales was extremely difficult
when Indonesia revived export taxes in November 2022,
making Indonesian soap producers more attractive in price,
KLK OLEO Group achieved a dismal pre-tax profit of
and sometimes even lower than our breakeven price. Buyers
RM133.1 million, against last year’s record pre-tax profit
bought on need basis and in smaller quantities. However,
of RM916.6 million. 2023 has been a challenging year
the business managed to make inroads in new territories.
globally. While 2022 was a year of demand recovery,
Our EBS (Ethylene bis stearamide) products which sell into
consumer sentiments in 2023 were cautious as the world
industrial products used in construction, automotive and
moved from the pandemic to inflation, rising interest rates
white goods remained sluggish and struggled to maintain
and geopolitical conflicts. All businesses faced strong
plant utilisation above half capacity. Our esters managed
headwinds that weakened both volumes and margins.
to maintain a healthy order book especially our mid-chain
In addition, anticipation that China’s lifting of COVID-19
triglycerides and IPP esters, which go into consumer staples
restrictions and economic stimulation would be a catalyst
such as foods and personal care segments.
for economic rebound with contagion effect did not
materialise. Demand also softened due to high inventory The fatty alcohol business achieved higher sales volume
levels and unprecedented prevalence of destocking, as well in the first half of the financial year, supported by higher
as other challenges, including fierce competition, volatility in mid-cut alcohol shipments. However, weak consumer
both currency exchange and raw material price. sentiments and macroeconomic conditions had put
pressure on both volumes and margins in the second half
Market condition for our Malaysian basic oleo operations
of the year. Methyl ester sales is being supported by local
was tough, as our fatty acids grappled with stiff competition
B100 biodiesel demand in Malaysia, albeit at lower margins.
for market share. Maintaining margins across the carbon
KLK Oleomas (KLKOM) in Selangor, Malaysia

OUR OR GANIS ATION
In our surfactants segment, methyl ester sulphonate Our European basic oleo business suffered losses from
sales still faced price competitive pressures from LABSA weak demand, with customers delaying call-offs on earlier
(synthetic petrochemical surfactant). After some initial committed purchases, due to uncertainties surrounding
teething problems post plant commissioning, our sodium recession and rising inflation. Our Düsseldorf site suffered
lauryl sulfate and sodium lauryl ether sulfate surfactants from high tallow prices due to the strong demand for animal
are seeing positive results from merchant seeding efforts. fats from biodiesel producers, making it continuously
Ongoing technical rectification and improvement of packing more difficult to get the animal-based feedstock in the
facilities should see a ramping up of bagging capacity to right quality, volume and price. These circumstances had
support increased sales volumes going forward. resulted in low utilisation of the Düsseldorf manufacturing
site ending up with negative contributions. The site
For our China operations, the country’s reopening and is a subset of the larger site which is owned and run by
easing of COVID-19 controls in early 2023 did not translate Henkel, making the Düsseldorf operations dependent on
into significant demand rebound, as there was more the infrastructure and utilities provided to run its operations
nervousness than optimism observed. Generally, business which unfortunately is not cost effective. Management
sentiment in China remained soft, and slow demand for is undertaking aggressive restructuring to consolidate
fatty acids and glycerine forced many local traders to dump basic oleo manufacturing at its Emmerich site, leaving the
their products at a loss. Situation was made worse when Düsseldorf site to focus on specialties which are less energy
Indonesian producers channelled their fatty acids into intensive. The consolidation and downsizing of basic oleo
China following the European Commission’s imposition of production to the Emmerich site will give the unit better
anti-dumping duties. At the same time, a major new entrant scale to drive plant efficiency, while looking for opportunities
came into the market adding more basic oleo capacities and to go further downstream and expand our specialties
flooded the market. Glycerine continued to face downward offering. A sales and purchase agreement on the acquisition
price pressure as the downstream ECH (epichlorohydrin) of Temix was signed on 31 March 2023, which will strengthen
market remained in the doldrums. Meanwhile, fatty esters our specialties portfolio.
sales into food and pharmaceutical sectors held steady.
Our European surfactants business also faced headwinds.
Demand from the detergent and adhesive industries
remained sluggish because of high energy costs and
destocking by customers, pushing overall demand for
surfactants in Europe down, resulting in declining margins
to maintain market share. The business continues to focus
on white label producers and defend our market positions
at key accounts and distributors. The unit continues to
improve plant processes, and our investment in a new
Good Manufacturing Practice (“GMP”) standard pastillation
line to grow our Pharma business is making good progress.
Outlook
KLKOM in Selangor, Malaysia

2023 has been a challenging year. Demand in Europe will
remain dampened in coming quarters while the Asian market
recovery is expected to be slightly ahead. The oleochemical
Weak demand also hampered our sales in Europe. While industry will see many new capacities coming onstream
the anti-dumping duty measures on Indonesian fatty acids in 2024/2025 that will bring fierce competition for market
imposed by the European Commission at the beginning share. We will continue to reinvest in the operations to drive
of 2023 did provide some reprieve, operations continued further value in the integration chain, including expansion
to be disadvantaged by high energy costs. Even after the of our fatty acid and fatty alcohol capacities in Indonesia
initial energy price shock following the Russia-Ukraine war and Malaysia. Expansion into oleo derivatives products and
had subsided, natural gas price levels remained elevated specialty business will continue to be our key priority, as well
in comparison to production locations elsewhere, which as managing our plant efficiencies to achieve operational
negatively impacted competitiveness. This is a significant excellence and cost optimisation to deliver high-quality
cost burden to the European oleochemical industry. sustainably produced products to the market.
RM133.1 Acquired Temix

Sales and purchase
Expanding fatty acid
and fatty alcohol
million agreement signed on capacities in Malaysia
FY2023 Pre-tax Profit
31 March 2023 and Indonesia.
REFINERIES Lahad Datu have been successfully commissioned.

Through these facilities, we expect new product offerings
like RBD Palm Kernel Stearin, Shortenings and Palm
Mid Fractions that are now coming on stream to deliver
additional value to the Refinery business and take the
Group another step closer to becoming a direct supplier to
Food/FMCG customers.
It was a difficult year for the Refinery Division as palm oil
refining and kernel crushing margins dropped more than Meanwhile, the Group’s mainstay refinery and KCP project
expected. However, the Group’s resilience and strategic in East Kalimantan, PT Perindustrian Sawit Synergi,
measures helped mitigate exposures presented by a weak continues to face challenging logistics and weather
overall demand for palm and fluctuating raw material conditions. The project completion is expected to be
prices. The Division’s performance remained healthy delayed to 2QFY2024.
and delivered good profits to the overall Manufacturing
Business Segment. NON-OLEOCHEMICAL
We continue to collaborate with our key customers to
develop products with better functionality and standards
that can expand options for their targeted applications
and focus on continuous improvement efforts to bolster
efficiency across our refineries and kernel crushing plants. The post-pandemic outlook for single-use glove market
At the same time, we remain committed to addressing the remains volatile amidst the ongoing market consolidation
emerging concerns for responsible raw material sourcing, and destocking. Although the market seem to have
particularly in the context of deforestation-free supply for hit the bottom, it will likely be a prolonged journey to
our customers with markets in Europe. profitability. There are signs of improvement in demand,
Our steady march in the Specialty Oils and Fats business but average selling price remains unprofitable.
further expanded our product reach into new markets Having five dipping lines ready for production, the focus
with customised solutions and product differentiation remains intact i.e. to control the production runs to merely
being the primary focus. We are happy to report that the support market seeding activities. We anticipate the market
three separate projects in Rawang, Pasir Gudang and to achieve supply-demand parity at the earliest in 2025.
New Facility update

PT PERINDUSTRIAN SAWIT SYNERGI
Location
East Kalimatan, Indonesia
Site
PT Perindustrian Sawit Synergi
Facility
Refinery/KCP/Jetty
Capacity
Refinery: 2,000 mt/day
Status (as at 31 October 2023)

Jetty - 100% (Completed)
Power Plant - 76%
Refinery Plant - 77%
KCP - 60%
Oleochemical - 60%
Expected date of commission

Power Plant - February 2024
Refinery Plant - February 2024
KCP - March 2024
Oleochemical - June 2024
OUR OR GANIS ATION
PROPERTY
DEVELOPMENT
RM218.1
million MARKET OVERVIEW
FY2023 Revenue Despite challenges stemming from high inflation and elevated interest rates,
developers in the residential property market remain cautiously optimistic
about the outlook for the rest of 2023. The market displayed stability in the
first half of the year (1H2023) and is expected to continue this trend, despite
ongoing challenges such as rising construction and labour costs. According
Winner for to MIDF Research’s findings on Budget 2024, property demand is projected
The Edge Property to recover, thanks to the expected stability of the benchmark overnight
Excellence Awards policy rate at 3% throughout the year.
(TEPEA) 2023 in the
PERFORMANCE
Affordable Urban Housing
category for Hibiscus 3 For FY2023, KLK Land managed to record RM218.1 million in revenue,
in Bandar Seri Coalfields 12% higher than the previous financial year (FY2022: RM195.2 million).
The increase in revenue is mainly attributable to the completion of The
Walden bungalows and Jardin 1 Phase 1 linked homes. Pre-tax profit
decreased to RM61.5 million, a 13% decline compared to FY2022 of
RM70.9 million. This decrease in pre-tax profit is primarily due to lower sales
of Jardin 2 in Bandar Seri Coalfields.
Artist impression of Jardin 2 in Bandar Seri Coalfields

BANDAR SERI COALFIELDS
Artist impression of Coalfields Retail Park
In Bandar Seri Coalfields, we are pleased to announce the successful delivery of two significant projects in FY2023,
Walden 1 and Jardin 1 Phase 1. Walden 1, consisting of 75 units of Bungalows was officially handed over to buyers in
4QFY2023. Walden 1 achieved 99% sales prior to its delivery. Concurrently, Phase 1 of Jardin 1, consisting of 110 units
of 22’ x 75’ terrace links, was completed and handed over to purchasers in September, attaining a 100% sales rate prior
to delivery. Both Jardin 1 and Walden 1 recorded a QLASSIC score of 82% a testament to our continuous commitment
on delivering quality homes.
Building upon the success of Jardin 1, we unveiled 237 units of Jardin 2. Apart from that, we have launched Quinton
Residences in August. Quinton 1 features the first cluster Semi D Homes in Bandar Seri Coalfields. These 128 units of
cluster residences have spacious lot sizes of 33’ x 65’ and generous built-up areas ranging from 2,016 square feet to
2,418 square feet.
We continued our long-term goals of improving the amenities within this township, particularly with the development
of Coalfields Retail Park. The initial phase of this development, featuring two drive-thrus, is slated for completion in
January 2025, with the subsequent completion of the main mall anticipated by 1QFY2026. The Coalfields Retail Park is
set to host a diverse array of offerings, including a cinema, supermarket, dining establishments, and family-friendly
entertainment venues.
Moreover, we are actively engaged in the establishment and operation of football fields and a co-working space within
the Central 1 shop lots, reinforcing our commitment to enhancing the amenities of Bandar Seri Coalfields to further
benefit the community.
OUR OR GANIS ATION
CALEDONIA
Artist impression of Caledonia Avenue (drop-off view)
Meanwhile, Caledonia’s first commercial component Caledonia Avenue was launched in the 3QFY2023. These
47 units of spacious and modern shop offices are strategically positioned along the prominent Federal Road 54
(FR54). Notably, this offering has garnered substantial interest, with sales achieving a steady take up rate within a mere
five months of its launch.
ACCOLADES
The Edge Property Excellence Awards 2023
KLK Land has emerged as a winner of The Edge

Malaysia Property Excellence Awards (“TEPEA”) 2023
in the Affordable Urban Housing category for its
Hibiscus 3 project, which is a Rumah Selangorku
development located in Bandar Seri Coalfields.
This Award is to recognise outstanding affordable

housing projects for the urban middle-income group
undertaken by private sector property developers in
Malaysia.
OUTLOOK
In the coming year, global uncertainty is set to persist with inflation, geopolitical instability and slow demand. The team is
focused on providing the right set of products to meet the market demand while increasing amenities within Bandar Seri
Coalfields and Caledonia. We will closely monitor cost and avenues to create cost optimisation strategies.
SUSTAINABILITY
STATEMENT AND REPORT
51 About this Report 58 Ethical Business Conduct
51 Scope and Boundary 59 Adoption of United Nations
52 A Message from the Audit & Sustainable Development Goals
Risk Committee Chairman 59 Stakeholder Engagement
The Evolution of KLK’s Approach 61 Materiality Assessment
Corporate Responsibility Methodology
55 Sustainability Governance 64 Environment
56 Sustainability Risk Management 72 Marketplace
57 Climate Change Risks and 76 Workplace
Opportunities
92 Community & Biodiversity
OUR OR GANIS ATION
SUSTAINABILITY STATEMENT AND REPORT
About this Report
KLK is proud to present its Sustainability Report 2023 – a comprehensive narrative of not just its commitment
to sustainable practices, but also the efforts it has undertaken and milestones it has set out to achieve. This report
covers the reporting period from 1 October 2022 to 30 September 2023, and is intended to be read jointly with
KLK’s Annual Report 2023 together with the policy and procedure documents made available on www.klk.com.my.
This is the 8th report published since we have embarked on our sustainability journey and demonstrates the evolution
of our approach to corporate responsibility.
Scope and Boundary

This report provides an overview of the key sustainability activities carried out by our Plantation and Oleochemical business
segments (excluding joint ventures) in all our places of operations:
Germany
Netherlands
Belgium
EUROPE
ASIA
Switzerland
Italy
China
AFRICA
Malaysia
Liberia
Indonesia
PLANTATION OLEOCHEMICAL
In April 2023, KLK OLEO acquired Temix Oleo SpA within the report for this financial year, we may consider
(“Temix”). Unless otherwise stated, all information in this obtaining external assurance on our disclosures going
Sustainability Report includes Temix. forward.
In preparing our disclosures, we have prioritised This report reflects our continuous efforts to improve the
compliance with Bursa Malaysia’s Sustainability Reporting way KLK operates within the Malaysian palm oil industry
Guide (3rd Edition) while aligning them as closely as in accordance with global best practices, international and
possible with requirements of both the Global Reporitng local regulations, and our own company’s ethos. We aim to
Initative (“GRI”) Standards and the Task Force on enhance transparency and accountability in our initiatives
Climate-Related Financial Disclosures (“TCFD”). To to achieve sustainability and carbon reduction, and we
enhance transparency, we disclosed data for reported welcome engagement with all our stakeholders to help us
indicators spanning three financial years. Where three reach this goal.
years’ worth of data is not visible, it indicates that it is the
Feedback and comments can be channelled to us via
extent of information available. While we did not conduct
sustainability@klk.com.my.
external assurance exercises on the information contained
A Message from the Audit & Risk Committee Chairman

The Evolution of KLK’s Approach to Corporate Responsibility
Dear Stakeholders,
It is amazing to witness how the concept of corporate social responsibility has evolved over the last decade,
leading to a focus on sustainability and creating shared value for all stakeholders. Like most corporate bodies in
Malaysia, we began our journey all those years ago with smaller community engagement activities. While these baby
steps may not have been measured nor directly linked to the company’s greater strategy, they served to strengthen
our connection with stakeholders and allowed us to get the buy-in we needed to evolve.
We can say with conviction that over the last eight years we have consistently made incremental advances in our
sustainability approach – streamlining reporting according to international standards, embedding sustainability in our
strategies and operations, setting targets and measures, and eventually involving our entire value chain in order to
widen our reach. We recognise that we can only effect real change when we communicate transparently and work
together with you, our stakeholders, who play the pivotal role of holding us accountable for our actions. We value your
perspectives and encourage constructive dialogues to help us chart our course.
This commitment to sustainability has enabled the Group to achieve a significant milestone. In November 2023,
we signed our first Sustainability-Linked Loan of RM500 million with Maybank, for general corporate purpose and
working capital. This landmark initiative features a pricing adjustment mechanism benchmarked against the achievement
of predetermined Sustainability Performance Targets, primarily focusing on the reduction of greenhouse gas emission
intensity. This not only exemplifies our dedication to sustainability but also aligns with our broader strategic goals,
demonstrating our ability to integrate sustainability principles into our financial strategies.
This year, we introduced our Seven Sustainability Commitments which were mapped against our Sustainability Pillars:
Marketplace
Aim for 50 products with product Aim for 100% Traceability to Plantation
carbon footprint data by 2025 for Refineries & Kernel Crushing Plants
and to Mill for Oleochemical Plants
Environment
Aim for 25% reduction in greenhouse gas Safeguard biodiversity through

emission intensity by 2029/2030 (compared to conservation and continued commitment to
2018/2019) and net zero emissions by 2050 NDP, HCS and HCV
(Scope 1 and Scope 2)
Workplace
Aim for zero fatalities and reduce Loss Time Maintain zero tolerance of forced and
Injury by 25% on average by 2025/2026 child labour
(compared to 2019/2020)
COMMUNITY
Continue to invest in education, environment, community and employee

development
Note:
Greenhouse gas emission intensity – based on production volume; NDP – No Deforestation, No new development on Peat; HCV –
High Conservation Value; HCS – High Carbon Stock.
OUR OR GANIS ATION
We aim to achieve the targets set in these Seven We also adopted a bottom-up approach to make sure
Commitments and in the spirit of transparency and that these commitments were practical and achievable.
Sustainability accountability, we will begin diligently For this, we engaged employees at all organisational
reporting the progress of our achievements annually levels – the very people who would be responsible for
starting in FY2024. implementing these commitments. Taking this route helped
us take stock of the present challenges and opportunities
At the root of these Seven Sustainability Commitments
within KLK, and identify realistic (yet ambitious) targets.
are four core issues that KLK, as a prominent player in the
local palm oil scene, intend to address: We went through a comprehensive and thoughtful
process to arrive at the Seven Sustainability Commitments
Decarbonisation – Healing our Planet this year for the following reasons:
• To see our past commitments through:
With climate change threatening all aspects of life,
By continuing our past commitments, we aim to build on
from biodiversity to basic food security, KLK is actively
the foundation we have already established, demonstrating
pursuing ways to control and minimise its carbon
our commitment to long-term sustainability and ethical
footprint.
practices.
• To take care of the safety and well-being of our employees:
Human Rights – Our Moral Duty Recognising that a sustainable business model must
include taking care of the workforce, we incorporated
Human rights are fundamental. KLK is committed employee welfare into our sustainability commitments as
to fulfilling its responsibilities to maintain the ethical a firm reminder to put employees first and ensure a safe
standards in both its own operations and within working environment for them.
its value chain. We believe that every person in our
contact sphere must be treated with fairness, dignity • To meet market and regulatory expectations:
and respect. With growing global concern about environmental issues
and increased scrutiny from regulators, it was essential
for the company to stay in line with these evolving
Ethical Sourcing
expectations to remain competitive and compliant.
– Committing to Compliance
However, it must be said that these Seven Sustainability
Responsible and ethical sourcing practices are Commitments are not cast in stone and are intended
imperative to the prevention of deforestation and to evolve over time to stay responsive to changing
unchecked land clearing. These practices also sustainability standards and community needs.
enhance the traceability of products throughout
its supply chain, through our adherence to As we navigate the dynamic landscape of sustainability,
NDPE, readying us for the European Union (“EU”) we acknowledge the ever-evolving nature of sustainability
Deforestation Regulation (“EUDR”) pending finalisation requirements that continue to escalate in complexity.
of due diligence mechanism by the EU authorities. Meeting these demands is an intricate challenge for
corporations, requiring continuous adaptation to stay
current. Historically, we adhered to the GRI Core option
Community Engagement disclosure framework, marking the foundation of our
– The Power of Collaboration sustainability journey. As we grow, our commitment to
We believe in investing in the communities around sustainability has strengthened and this is reflected in
us, co-creating a social contract that is mutually the steps we are taking to refine our disclosure roadmap.
beneficial. There is an interconnectedness between Aligning ourselves with GRI Standards and meeting
our organisation and our stakeholders and by Bursa Malaysia’s requirements for both common and
engaging meaningfully, we stand to build economies, sector-specific sustainability issues are key milestones in
foster talents, nurture innovation and create thriving our journey. Embarking on the TCFD framework aligns
ecosystems together. us closer to Bursa Malaysia’s expectations, and we are
proactive in preparing for compliance with the Corporate
Sustainability Reporting Directive (“CSRD”) in Europe.
These Seven Sustainability Commitments were formulated
Anticipating the future, we will commence our journey
using a strategic and comprehensive approach.
towards meeting the requirements of the International
Benchmarking ourselves against industry peers was a
Sustainability Standards Board (“ISSB”), emphasising
critical step in ensuring that our commitments are not only
our dedication to sustainable practices and transparent
ambitious, but also attainable. It allowed us to identify
reporting.
industry best practices and set our sights higher, aiming
to lead in sustainability rather than merely following trends.
Key achievements and highlights

We are pleased to present our key achievements and highlights for FY2023 as follows:
MARKETPLACE
Total CPO Produced Traceability#

1,255,478 mt
Malaysia 100% 100% 94% 90%
Palm Oil Mills Refineries Refineries & Oleochemical
CSPO Production Uptake – Uptake – traceable to & KCPs KCPs traceable plants to
(mt) RSPO (mt) ISCC (mt)
Plantations/ traceable to to Plantations/ Palm Oil Mills
298,998 222,118 56,009 FFB Suppliers Palm Oil Mills FFB Suppliers
Indonesia
#
Traceability follows calendar year
CSPO Production Uptake – Uptake – Certification status

(mt) RSPO (mt) ISCC (mt) Certification Estates Palm Oil Mills
501,784 251,291 47,066
RSPO 76% (95%) 78% (100%)
MSPO 100% 100%
ISPO 96% 100%
ISCC N/A 20 mills
* Numbers in brackets (%) excludes KLK Sawit Nusantara
Environment Workplace Community
Total Conservation Area Over 585 members Allocated RM8.5 million

in learning facilities to
24,949 hectares in Gender committee
manage 160 learning
Green Energy Generated 20.4% of Women facilities for over
from Biogas Plants in total workforce 11,979 students across
Malaysia, Indonesia and
24.86 GWh supplied Union members Liberia
to national grid
16,369 employees
34.45 GWh used for Invested
own operations LTI Frequency rate RM620,500 in
Yayasan KLK Scholarships
Water Usage Rate 34.64
Plantation for young Malaysians
1.27m3/mt FFB Oleochemical 1.50
processed Invested RM500,00
2,872 Safety and in Tiger conservation
Waste Diverted from Health Committee
Landfills representatives Invested RM560,000
13,403 tonnes across Plantation and in National Sports
Oleochemical Development
Documented
414 flora species and Zero tolerance policies Vaccinated 11,500
since 2014 against human recipients in Liberia
546 fauna species trafficking, forced labour,
in our sites child labour, discrimination, Donated over
bullying and harassment
RM4.8 million to
Zero recruitment fee support arts, education,
policy since 2014 health & sports and
humanitarian & community
endeavors
We are also gratified to have received several awards over the financial year for our sustainability efforts. For more information
on some of these awards, please refer to page 26 of our annual report.
OUR OR GANIS ATION
SUSTAINABILITY GOVERNANCE
Sustainability Steering Committee Composition
Chair
Board of Directors
Audit & Risk Operations

Committee
Chief Operating Officer

Secretariat
Sustainability Sustainability
Steering Department
Committee
Legal & Company

Plantation Manufacturing Property Sustainability
Secretarial
Sustainability
Working • Group Plantations • Deputy Chief • Managing • Chief • Company
Committee Director Executive Officer Director Sustainability Secretary
• Operations • CEO KLK OLEO • General Officer
Director Europe Manager
• Refinery
Controller
Sustainability
Task Force
We have operationalised our 5-tier sustainability Safety, Risk Management, all of whom contribute towards
governance and implementation structure to offer a assessing, managing, monitoring and problem-solving in
comprehensive mechanism to effectively manage the the following areas, including but not limited to:
integration of sustainability into the organisation. The environmental impact and management, employment and
Board is assisted in this function by the Audit and Risk recruitment practices, supply chain and traceability, safety
Committee (“ARC”) comprising all non-executive directors and health, certifications and standards, social impact
and chaired by the Senior Independent Non-Executive management and socio-economic development, and
Director. This is to maintain a certain level of neutrality reporting and disclosures. The SWC will provide guidance
and independence in the governance and oversight of and updates to the SSC accordingly.
sustainability matters brought to it by the Sustainability
Steering Committee (“SSC”) for deliberation. Further Sustainability Task Force (“STs”) are established on an
information on the ARC functions is contained in the Audit as-needed basis, consisting of subject matter experts
and Risk Committee Report section of this annual report. handpicked from within KLK. Their responsibilities include,
but are not limited to, strategy formulation, defining
The SSC, chaired by the Group CEO, monitors targets and goals, roadmap establishment, development
major policies, processes and strategies designed to and facilitation of implementation plans, monitoring
manage environmental (including climate-related), social, implementation progress, receiving guidance and updating
governance and reputational risks, and is tasked to achieve the SWC on the status of deliverables.
compliance with sustainable development responsibilities
and commitments. As an example, in order to facilitate delivery of the Group’s
Climate/Carbon Management strategy we formed the
The SSC delegates specific implementation plans to the KLK OLEO Asia Decarbonisation Task Force and the KLK
Sustainability Working Committee (“SWC”), headed by the OLEO Europe Decarbonisation Task Force. These task
Chief Sustainability Officer. Members of the SWC include forces are responsible for computing the GHG Scope 1
the Heads of Operations, Sustainability, Purchasing, and 2 baseline for our operations, setting the roadmap and
Finance, Human Resources, Communications, Health and prioritising projects to achieve our decarbonisation target.
Sustainability Risk Management
Enhancement to Risk Management and

Risk Management and Governance Structure
Risk Parameters Assessment
Sustainability Risk (5 Risks)

Board of Directors
1 Human Rights Risk 4 Human Capital
Risk
2 Climate Change Risk
Audit & Risk Committee 5 Occupational
3 Supply Chain Risk Safety and Health
Risk
Group Risk Management Enhanced Risk Parameters Assessment

Enterprise Risk Manager/
Committee GRMC Secretariat Existing New
• Financial • Operational
Dedicated risk function • Commercial • Strategic
at the Group-level
• Legal • Health & Safety
• Human Resources
• Human Rights
• Environment & Biodiversity
Plantation Manufacturing Property • Customer Satisfaction
The Audit & Risk Committee (“ARC”) plays a vital role in Our enhanced risk management framework integrates
ensuring the financial integrity and risk management of our seven additional risk assessment parameters; namely
organisation. The Committee is responsible for overseeing operational, strategic, health & safety, human resources,
financial reporting and accounting practices, reviewing human rights, environment & biodiversity, and customer
internal controls and assessing the effectiveness of risk satisfaction have been embedded into our risk
management processes. They provide an independent and assessment. This expansion underscores our proactive
objective perspective, helping to maintain transparency approach to risk mitigation and reflects our commitment
and accountability while safeguarding against potential to a resilient corporate structure that extends beyond
financial, operational and sustainability risks, including financial, commercial, and legal considerations. As we
managing climate-related issues. navigate the dynamic business landscape, these enhanced
risk assessment parameters play a pivotal role in ensuring
The Group Risk Management Committee (“GRMC”) is the
the sustained success and stability of our organisation.
governing body that was set up to oversee risk management
for our Plantation, Manufacturing and Property segments. For more information on our top priority risks and how
The GRMC reports to the ARC on a half-yearly basis on the they are managed, please refer to the Statement on
Group’s risk management profile and risk appetite. Risk Management & Internal Control on page 121 of the
Annual Report.
In FY2023, we continued to monitor and improve on our
management of the five sustainability risks identified last
year, namely:
• Human Rights Risk
• Climate Change Risk
• Supply Chain Risk
• Human Capital Risk; and
• Occupational Safety and Health Risk.
OUR OR GANIS ATION
Climate change risks and opportunities

Our evaluation of climate-related risks and opportunities is outlined in the following table. This information guides discussions
among Management and Leadership, ensuring that KLK’s strategies stay robust, relevant and meet market expectations.
Transition Risks
Type Policy and Legal Reputation Market Regulation
Description Policy frameworks aimed Reputational risk has The growing EUDR regulation
at restricting emissions the potential to trigger consciousness among framework, aimed at
and promoting climate stakeholder actions consumers about curbing deforestation,
change adaptation, such such as consumers, climate change and their requires every player
as the carbon tax in banks and investors increasing demands in the industry to
Europe. These policies to steer clear of our for measures to implement stringent
mandate a reduction company. A tarnished address climate-related measures to ensure their
in GHG emissions and reputation can stem from consequences. As an supply chains are free
encourage the adoption various factors, including instance, customers from products linked
of climate-resilient unethical practices, are now requesting a to deforestation. Every
practices. environmental negligence commitment to avoid shipment into Europe will
or poor governance. deforestation and no need 100% traceability
human rights issues to plantation.
related sources.
Impact Failure to adapt may Such negative A diminished pool of Non-compliance will
result in financial perceptions can lead to suppliers due to result in penalties and
penalities, increased reduced customer trust, non-adherence to restricted market access.
operating costs and financial institutions compliance standards.
reduced market refusing credit and
competitiveness. investors withdrawing
their support.
Mitigation Proactively address our Continue to prioritise Active supplier Educating dealers and
carbon footprint, improve ethical, sustainable, engagements to suppliers on the impact
our processes, invest responsible practices implement NDPE of EUDR, as well as
in clean technologies and transparent commitments. the importance of data
and align with evolving disclosure to safeguard sharing.
climate policies. our reputation,
maintaining stakeholder
trust and ensure
long-term viability.
Timeframe Medium Long Medium Medium
Physical Risks
Description The intensification of both El Niño and La Niña events due to climate change has heightened the risk
of extreme wet weather and prolonged dry weather, especially the escalating the threat of fires. This
phenomenon not only impacts oil palm plantations but also poses a significant danger to surrounding
communities.
Impact These conditions can negatively affect crop yield and the overall health of the plantation. In the worst-case
scenario, uncontrolled fires could lead to the loss of lives and property in the vicinity of the plantation.
Mitigation Implementation of water infrastructure and regular training for our firefighting team. Please read ‘Hotspots
and Fire Monitoring’ on page 64 section for more information.
Timeframe Short
Opportunities
Type Energy Source Markets Products and Services
Description The utilisation of lower-emission Providing access to customers Sharing our product carbon
energy sources, such as biogas who demand certified palm oil footprint and proactively seeking
and solar power presents a and from sustainable sources. ways to reduce it.
promising opportunity for us. For instance, RSPO, MSPO,
Biogas, derived from palm oil mill ISPO and Verified Deforestation
effluent (“POME”), and solar Free (“VDF”).
energy harnessed from sunlight,
are eco-friendly alternatives to
traditional fossil fuels.
Impact Adopting these sustainable By offering certified palm oil By providing transparent
energy sources not only reduces products, we are able to tap information about the
carbon but also offers cost into a niche market, build brand environmental impact of
savings and resilience against trust and contribute to a more our products, we not only
fluctuating energy prices. sustainable palm oil industry. demonstrate our commitment
to sustainability but also open
doors to potential eco-conscious
customers and markets.
Mitigation Implementation of additional Continue to ensure our remaining Sustain extensive collaboration
biogas facilities and solar panels estates are RSPO certified and and allocate resources towards
throughout our operations assist smallholders in their R&D to drive innovation in the
while maintaining a judicious certification journey. development of enhanced and
assessment of the potential return novel products.
on investment.
Timeframe Medium Medium Medium
Ethical Business Conduct

KLK has proactively disclosed its codes of to environmental preservation. Additionally, it affirms our unwavering
conduct, which encompass guidelines for commitment to complying with applicable laws across all our business
the company, employees, directors and locations. Our main sustainability-related policies are as listed below:
suppliers, along with various company
policies on www.klk.com.my. We expect Environment:
• Sustainability • Environmental
that all individuals or entities engaging
• Non-Compliance Protocol • Zero Burning
in business with us, or representing our
• Biodiversity Conservation • NDPE
interests, are not only aware of these
policies but also fully adhere to them.
Social:
Our codes of conduct articulate our • Donations & Sponsorships • Sexual Harassment
corporate values and the standards that • Employee Grievance • Occupational Safety and Health
foster a wholesome and ethical work Redressal
environment for our employees. The Code
of Conduct and Ethics for the Company Governance:
and Group comprehensively addresses • Whistleblowing • IT and Cyber Security
several crucial aspects. This includes • Anti-Bribery and • Quality
governance and integrity, encompassing Anti-Corruption • Code of Conduct for Company,
anti-corruption, anti-money laundering, • Corporate Disclosure Directors, Employees &
and anti-trust principles. It also highlights • Directors Fitness and Suppliers
our dedication to diversity, equality, Propriety • Risk Management
and inclusivity, with zero tolerance for • Personal Data Protection
harassment and bullying. The document Some of these policies are targeted measures designed to effectively
underlines our corporate responsibility manage the material sustainability matters identified this financial year. They
to uphold and safeguard human and were carefully crafted based on the results of our recent materiality
labour rights, explicitly opposing human assessment and are directly aligned with the concerns and expectations of
trafficking, forced labour and child labour. our stakeholders. More details on our codes of conduct and policies, are
It also emphasises our commitment accessible at www.klk.com.my/governance-policies/.
OUR OR GANIS ATION
Adoption of United Nations Sustainable Development Goals

The 17 United Nations Sustainable Development Goals (“SDGs”) stand as a global call to action for addressing poverty,
environmental preservation, and the establishment of universal peace and prosperity by 2030. KLK has consistently
championed these SDGs, and announced our endorsement of SDG16 “Peace, Justice, and Strong Institutions” last year,
which meant we had embraced 11 of the 17 goals as of FY2022.
As a testament to our unwavering dedication to sustainable development, we are excited to share that this year, we expanded
our commitment once more by adopting three additional SDGs. This brings our total number of SDGs adopted to 14 and
solidifies our position as a responsible and comprehensive advocate for sustainable development, actively contributing to
global efforts to achieve these crucial goals.
* *
* new SDGs adopted in FY2023
Stakeholder Engagement
Recognising the value our stakeholder perspectives bring and actively seeking their views are vital aspects of our
sustainability strategy. It provides us with a more profound understanding of the topics that are of significance to them,
the degree of importance these matters hold and how we can enhance our contributions by addressing them. In 2023,
we have identified nine primary stakeholder categories and interacted with them through the following methods.
Stakeholder Areas of Concern/ Outcome/

Engagement Approach
Group Interest Possible Solutions
• Land matters, complaints • Meetings, engagements and • Amicable solutions to conflicts

and grievances dialogues and grievances
• Supply chain concerns • Joint exercises and training • Enhance smallholders’ agriculture
Local
• Knowledge sharing on • Community outreach activities practices with sustainable options
Communities &
agricultural best practices and development programmes and create awareness of policy
Smallholders
• Relationship with KLK • Email surveys and commitment to sustainable
palm oil production
• Planning and implementation of
shared initiatives
• Community activities such as
“gotong-royong” at villages,
health talks/checks and festive
celebrations
• Sustainability-related • Formal and informal meetings, • Better understanding of their
concerns engagements and dialogues concerns and issues with the palm
• Challenges faced by KLK • Regular correspondence oil industry and KLK
NGOs
and the palm oil industry • Collaborations and project • Enhance their understanding
as a whole partnerships of KLK’s sustainability related
• Policy and documentation policies, sustainability practices,
reviews status, progress and initiatives
• Official grievance mechanism • Development and implementation
• Email surveys of shared initiatives
Stakeholder Areas of Concern/ Outcome/

Engagement Approach
Group Interest Possible Solutions
• Relevant issues and • Meetings, engagements and • Audit and certification

updates in the industry dialogues • Compliance with policies and
• Governance in • Regular reporting and meetings latest changes in requirements
Certification
compliance with statutes • Visits to and inspections at
Bodies (RSPO,
and regulations Operating Centres
MSPO, ISPO,
• Constructive partnerships
ISCC)
• Email surveys
• Support for government • Meetings, engagements and • Development and implementation

policies and initiatives in dialogues of shared initiatives
the industry • Collaborations in constructive • Compensation process and
Government
• Contribution to national schemes avenues
(Ministries,
sustainability goals • Visits to and inspections at • Compliance with laws and
Agencies,
Operating Centres regulations and latest revisions
Regulators,
Industry
Associations)
• Progress and compliance • Formal and informal briefings • Provide insight into our
to sustainability standards and meetings sustainable business progress and
• Clarification of media • Annual General Meetings performance
Investors,
reports about KLK • Corporate website
Bankers &
• Maximisation of • Email surveys
Analysts
shareholder value
• Product quality • Formal and informal briefings • Create awareness of KLK’s Policy
• Product certification, and meetings and commitment to sustainable
supply chain and • Site visits palm oil production and their role
Customers
traceability • Email surveys in it
• Socio-economic
concerns
• Awareness and • Workshops • Create awareness of KLK’s

compliance to KLK’s • Formal and informal briefings Sustainability Policy, Supplier
policies, where applicable and meetings Code of Conduct, Non-Compliance
Suppliers &
• Supplier Code of Conduct • Third-party Supply Chain Protocol and commitment to
Contractors
and Non-Compliance Management Programme sustainable palm oil production
Protocol • Email surveys and suppliers’ role in this
• Employee development • Employee wellness activities • Awareness of KLK’s policies,
and job satisfaction • Intranet news updates and culture and core values
• Welfare and remuneration quarterly newsletter • Enrich inclusiveness and
Employees
• Safety and health issues • Training programmes teamwork, creating a better work
and practices • Annual appraisals environment toward a shared goal
• Sustainability practices • Global townhall • Improve awareness of our
commitment to sustainable
practices
• Talent acquisition • Provision of scholarships • Opportunities for underprivileged
• Clarification on • Internship programmes students to further their studies
misinformation concerning • Talks and participation in • Exposure to work life and
Schools &
the palm oil industry roadshows expectations
Universities
• Awareness about palm oil industry
Note:
Unless otherwise stated, engagements with stakeholders were conducted on a periodic or ad-hoc basis.
OUR OR GANIS ATION
Materiality Assessment Methodology

On an annual basis, we reassess our material sustainability matters, prioritising them based on their importance in our
stakeholders’ view and how they affect our business. We follow a 3-step approach:
Review Prioritise Validate

assessing the relevance of our conducting assessments each charting the material
material sustainability matters year with internal and external sustainability matters on a
against the current concerns stakeholders to arrive at the matrix to ascertain shifts
affecting operations of our rating of each material matter. in priorities that need to be
company as well as the local addressed.
and international palm oil
landscape.
A survey is sent out to stakeholders every year to obtain feedback on the priority ratings of our material sustainability
matters. These assessments contribute towards the ratings of our materiality matrix. The Board of Directors is apprised of the
result of the materiality assessment every year before endorsing the materiality matrix.
Material Sustainability Matters for FY2023

We value ongoing dialogue with stakeholders such as customers, employees, investors, regulators, and the wider community
to identify and prioritise material sustainability matters. The insights gained guide our reporting efforts, ensuring transparency
and alignment with stakeholder concerns.
For FY2023, we expanded our engagement through an online survey, reaching internal (Board, Senior Management,
employees) and external (customers, financial institutions, shareholders, suppliers, NGOs) participants. With a 49% response
rate, we appreciate the robust feedback received, reinforcing our commitment to transparency and stakeholder inclusion in
shaping our sustainability agenda.
Our reassessment this year yielded an expansion in the scope of our material sustainability matters. For example, we divided
the Carbon Footprint topic into two separate matters, i.e. Carbon Emissions Reduction and Net Zero to enable better
coverage and improve our focus. This reassessment resulted in 25 topics being identified as compared to the 18 topics we
reported on in previous years. Please see the comparison below:
KLK Sustainability Pillars FY2023 FY2022
1. Carbon Emissions Reduction* 1. Carbon Footprint

Environment 2. Net Zero* 2. Protection of High Carbon Stock Forests
3. Protection of High Carbon Stock Forest 3. Management of Peatlands
4. Management of Peatlands 4. Protection of High Conservation Value
5. Protection of High Conservation Value and Biodiversity
and Biodiversity 5. Legal Compliance
6. Water Footprint 6. Water Footprint
7. Waste Management#
8. Product Carbon Footprint & Life Cycle
Assessment#
9. Regenerative Agriculture#
10. Ethical Practice 7. Ethical Practice

Marketplace 11. Evaluation of Suppliers’/Contractors’ 8. Evaluation of Suppliers’/Contractors’
Sustainability Commitment Sustainability Commitment
12. Market and Commodity Price Risk 9. Market and Commodity Prices
Management 10. Product Certification
13. Product Certification 11. Traceability
14. Traceability
KLK Sustainability Pillars FY2023 FY2022
15. Legal Compliance# 12. Health and Safety

Workplace 16. Health and Safety 13. Labour Relations and Human Rights
17. Labour Relations and Human Rights 14. Training and Education
18. Training and Education
19. Living Wage#
20. Employee Well-being#
21. Community Investment 15. Community Investment

Community 22. Free, Prior and Informed Consent 16. Free, Prior and Informed Consent
23. Grievance Redressal 17. Grievance Redressal
24. Sustainable Development of 18. Sustainable Development of
Smallholders Smallholders
25. Diversity, Equity and Inclusion#
Note:
* Previous topic on Carbon Footprint has been revised in FY2023 and divided into two new areas, i.e. Carbon Emissions Reduction and Net Zero.
#
Newly identified topics for FY2023.
The materiality assessment carried out with the participation of representatives from both internal and external stakeholder
groups yielded the Materiality Matrix below:
ENVIRONMENT
Medium High 1 Carbon Emissions Reduction
2 Net Zero
3 16 3 Protection of High Carbon Stock
10 15 Forest
Influence on stakeholder assessments and decisions
17 4 Management of Peatlands
1 5 Protection of High Conservation Value
20 and Biodiversity
5 6 Water Footprint
11 12
4 7 Waste Management
19 8 Product Carbon Footprint & Life Cycle
14 18 Assessment
25 7
8 9 Regenerative Agriculture
6 23
13 MARKETPLACE
21 2 10 Ethical Practice
24 22 11 Evaluation of Suppliers’/Contractors’
Sustainability Commitment
9
12 Market and Commodity Price Risk
Management
13 Product Certification
14 Traceability
WORKPLACE
15 Legal Compliance
16 Health and Safety
17 Labour Relations and Human Rights
18 Training and Education
19 Living Wage
Low
20 Employee Well-being
Significance of KLK’s Sustainability impacts COMMUNITY

21 Community Investment
22 Free, Prior and Informed Consent
23 Grievance Redressal
24 Sustainable Development of
Smallholders
25 Diversity, Equity and Inclusion
OUR OR GANIS ATION
Core Areas Related SDG(s) Management Approach
8 12 16 • Strong code of ethics, policies and procedures

Marketplace governing the operations of the company.
• Ethical Practice • Frequent engagement with stakeholders.
• Evaluation of Suppliers’/ 17 • Transparent grievance redressal procedures.
Contractors’ Sustainability • Products certified under the RSPO, ISCC, ISPO and
Commitment MSPO certification schemes.
• Market and Commodity Price • Ongoing efforts to ensure traceability of palm products.
Risk Management • Strict enforcement of code of conduct on supply chain
• Product Certification and monitoring of supplier/contractor performance.
• Traceability • Collaborating with 3rd parties to address and resolve
grievances effectively.
6 7 12 • Water management strategies to optimise and reduce

Environment water consumption or wastage.
• Energy management strategies including employing the
• Carbon Emissions Reduction use of renewable sources of energy and optimisation of
13 15 16
• Net Zero energy use.
• Protection of High Carbon • Strict policies on zero deforestation, zero burning,
Stock Forest 17 GHG emission and haze management, and peatland
• Management of Peatlands protection.
• Protection of High • Commitment to protection of biodiversity and HCV areas
Conservation Value and through the KLK Biodiversity Conservation Policy.
Biodiversity • Partnering with relevant NGOs and non-profit
• Water Footprint organisations for biodiversity conservation.
• Waste Management
• Product Carbon Footprint &
Life Cycle Assessment
• Regenerative Agriculture
1 2 3 • Practising fair employment with decent living wages

Workplace provided to the workforce.
• Providing a safe and healthy working environment and
• Legal Compliance
8 16 5 giving employees opportunities for development.
• Health and Safety
• Strict policies on the protection of human and labour
• Labour Relations and Human
rights, with zero tolerance for forced labour or child
Rights
10 17 labour.
• Training and Education
• Protection of employees’ freedom of association and
• Living Wage
rights to collective bargaining.
• Employee Well-being
2 4 8 • Providing aid in the form of food, medical and essentials

Community to surrounding communities.
• Empowering local communities through education and
• Community Investment
17 training.
• Free, Prior and Informed
• Creating opportunities to involve local smallholders in
Consent
KLK supply chain.
• Grievance Redressal
• Sustainable Development of
Smallholders
• Diversity, Equity and
Inclusivity
ENVIRONMENT
Protecting Forests and Peatland –
Our Commitment to Conservation
KLK strictly upholds its policy to avoid deforestation

and refrain from developing on peatland when
identifying potential land for plantation purposes.
We are dedicated to the preservation of primary forests,
peatlands and areas classified as High Conservation
Value (“HCV”) within our locations of operation,
encompassing areas rich in biodiversity, rare and at-risk
species, as well as areas with essential natural resources
and services crucial for fulfilling the basic requirements of
local communities and upholding their age-old cultural
heritage. We are happy to share that for FY2023, there were
zero reports of non-compliances in these respects. Tabled
below are statistics (by region) on our total planted area,
total peatland and HCV area recorded this year:
Rhinoceros hornbill at Hundred-Acre Wood, Sg. Sabang estate
Location Malaysia Indonesia Liberia Total
Total planted area (ha) for palm 116,953 164,110 6,118 287,181
Landbank or planted on peat (ha) 1,414 15,712 0 17,126
Size of conservation area, including HCV (ha) 5,455 14,986 4,508 24,949
Hotspots and Fire Monitoring
Extended periods of dry weather inevitably pose a threat • Our estate employees perform hotspot monitoring within
to our plantation assets, increasing the risk of fires. The our estates and surrounding areas. Any hotspots detected
resulting haze can lead to pollution, severe health issues, within or near our properties are swiftly reported to the
and disrupt fruit growth and harvesting. relevant management units.
KLK Plantations has implemented various precautionary • Our firefighting teams undergo annual training organised
measures to detect and respond promptly to fires in our by the Badan Penanggulangan Bencana Daerah (“BPBD”)
estates and surrounding forests: and conduct firefighting simulations, particularly during
dry weather.
• Our Operations Centres (“OCs”) conduct regular
field patrols to identify and extinguish any hotspots. • Regular safety audits by our Sustainability team ensure
Additionally, we strategically position reservoirs, water that firefighting teams are adequately equipped and
ponds, and fire towers across our estates, with firefighting trained, and that they comply with standard operating
equipment, water pumps and dedicated vehicles on procedures.
standby for immediate response.
• In each region, we have installed at least one weather
station to monitor relevant parameters. This data helps
us calculate the Fire Weather Index (“FWI”), serving as
a preventive measure and early warning system for our
management units.
OUR OR GANIS ATION
Location Malaysia Indonesia Liberia Total
No. of Hotspots KLK estates 0 26 0 26

Within 5km radius 6 174 35 215
of KLK estates
No. of Fire Incidents KLK estates 0 19 1 20
Within 5km radius 3 136 35 174
of KLK estates
Collaboration with Earthqualizer KLK OLEO is dedicated to implementing a robust plan

aimed at reducing its GHG intensity. However, our
We partnered with Earthqualizer (“EQ”) to employ satellite commitment extends beyond the oleochemical division as
monitoring to oversee our suppliers, ensuring they refrain we recognise the importance of addressing environmental
from engaging in deforestation, peatland clearing and the impact across the entire spectrum of our operations,
creation of fire hotspots. EQ delivers bi-weekly reports including plantations, mills and refineries. To this end,
and we hold frequent meetings with them to address any we are in the process of developing comprehensive
allegations of wrongdoing by our suppliers. These reports decarbonisation plans tailored specifically for our plantation,
empower us to take a proactive stance in engaging our mills and refinery activities. In our pursuit of sustainability,
suppliers, validating any claims and formulating remedial we are exploring Renewable Energy Credits to offset
action plans when necessary. In 2022, EQ assisted in our carbon intensity, aligning with our goal to deliver
monitoring 11.1 million hectares of land used by our supply 50 products complete with a product carbon footprint,
chain partners. As EQ reports are provided based on responding to customer demands. The reduction in intensity
calendar years, the information on hectarage monitored in not only fulfils customer expectations but also sets the
2023 will be presented in next year’s Sustainability Report. baseline for any lower product carbon footprint efforts in
the future. This, in turn, will have a cascading effect on
the entire life cycle analysis (“LCA”) of our products.
GHG & Carbon Footprint – Managing Our
Furthermore, we are diligently working to ensure the accuracy
Intensity
of our LCA calculations, basing them on actual data rather
There is no better time than now to escalate efforts in than default values, thereby reinforcing our commitment
managing GHG and carbon emissions. With this intent, to transparent and responsible environmental practices.
we have pledged, as one of our Seven Sustainability
Commitments, 25% reduction (Scope 1 & 2) in GHG Plantation’s Average GHG Intensity
emission intensity by 2029/2030 as well as to aim for Net (kg CO2 eq/mt CPO)
Zero emissions (Scope 1 & 2) by 2050. In our continuous
pursuit of transparency and sustainability, we have chosen 491 476 455
to adopt a more detailed approach in accordance with
the Greenhouse Gas (“GHG”) Protocol. This commitment
entails providing comprehensive disclosures on Scope 1,
2, and a limited set of Scope 3 emissions, reflecting our
in-house efforts and understanding of the GHG Protocol.
This refined reporting methodology signifies a departure
from previous years’ annual reports, resulting in noticeable FY2021 FY2022 FY2023
differences and revision in intensity emission figures from
the plantation. The graphs on the right depict the GHG Oleochemical’s GHG Intensity
intensity for both our plantation and oleochemical (mt CO2 eq/mt prod vol)
operations. It is important to note that the intensity
calculation considers only Scope 1 and 2 emissions, as 0.26 0.23 0.21
outlined in our sustainability commitment.
As we embark on this journey toward greater alignment
with the GHG Protocol, we recognize that this represents
just the beginning. Over the coming years, we are committed
to enhancing the accuracy of our emissions data and
gradually incorporating additional Scope 3 items into our
reporting framework. FY2021 FY2022 FY2023
Oleochemical Scope 1 & 2 GHG Emissions Plantation Scope 1, 2 and 3 GHG Emissions
(mt CO2 eq) (mt CO2 eq)
558,190.58
428,373
548,227.32
476,075.58
307,342
297,103
145,393.12
141,550.22
136,941.70
204,122
177,730
22,436.11
18,640.27
158,857
17,819.33
FY2021 FY2022 FY2023 FY2021 FY2022 FY2023
Scope 1 Scope 1
Scope 2 Scope 2
Scope 3
GHG Protocol Refresher Training and Decarbonisation

Filter belt press
Workshop
Existing filter belt GHG reduction from filter belt
press press KLK conducted a decarbonisation workshop involving all
its oleochemical facilities in Asia, with the primary aim in
27 185,250 mt CO2 eq establishing the overall strategic approach and roadmap
for each facility, in alignment with our broader 2030 target.
Biogas plants Projects were meticulously identified and prioritised based
on their impact and return on investment, emphasising a
Biogas plants Methane avoided from biogas balanced approach to our carbon reduction. The workshop
capture
9 was preceded by a refresher training on GHG Protocol,
179,097 mt CO2 eq as the chosen methodology for KLK’s carbon accounting
moving forward.
KLK currently operates nine biogas facilities, with four A similar initiative on decarbonisation was launched in
located in Malaysia, four in Indonesia, and one in Liberia. our European operations in 2022 and is currently in the
This strategic distribution aligns with our commitment implementation phase. We plan to replicate this activity for
to environmental responsibility and reducing carbon our upstream and midstream operations to further support
emissions. Looking ahead, KLK has plans to construct our 2030 target. As we are committed to steadily
additional biogas plants in the coming years in our effort improving our carbon management and making it more
to further mitigate our carbon footprint. comprehensive, we will also initiate limited GHG Scope 3
baselining activities starting next year.
GHG Protocol refresher training and carbon emission reduction projects identification
OUR OR GANIS ATION
GHG Reduction Case StudIES
1. Project POK Solar – A Triumph in GHG Reduction
In the heart of KLK OLEO’s manufacturing facility

at Taman Perindustrian Bukit Raja, a transformative
initiative was launched to address the need for a
sustainable energy source. The team undertook the
POK Solar Project, installing 1,576 Monocrystalline
Solar PV modules on rooftops across the facility,
with a total capacity of 866.8 kWp.
The project aimed to generate electricity in an
environmentally friendly manner with a substantial
substantial impact. It was estimated to produce 1 GWh
of renewable electricity annually, equivalent to 5% of the
facility’s yearly electricity consumption, while also reducing
annual Scope 2 emissions by 550 mt CO2 eq. Moreover,
it resulted in significant cost savings of over RM500,000
per year, thanks to the generation of free and clean electricity.
The project was equipped with real-time monitoring to ensure
peak efficiency.
In essence, the POK Solar Project was more than just an
electricity generation effort; it was a testament to the power
of sustainable and responsible practices. Not only did it deliver
cost savings, but it also contributed to a cleaner and greener
environment, showcasing the potential of technology and innovation Solar roof installation at Palm-Oleo (Klang)
in shaping a more sustainable future.
2. The Wärmeverbund Heat Integration Project – A Revolution in Energy & Waste Efficiency
The Wärmeverbund Heat Integration Project was

initiated at Emmerich manufacturing facility to
address a pressing challenge - the loss of energy
due to high waste water temperatures, incurring
substantial financial and environmental costs.
In the first phase, two activated carbon filters were
installed to recycle 25 m³/h of waste water, elevating the
heat integration system’s feed temperature from 18°C
to 22°C. This not only resulted in considerable energy
savings but also reduced waste water fees, along with a
30 m³/h decrease in well water usage.
The project’s second phase increased the heat integration
system’s temperature by enhancing heat exchanger surfaces,
significantly reducing steam consumption to heat up feed
water in steam production. The third phase, currently underway,
involves economisers for distillation columns to further curtail
steam consumption and promote energy efficiency. The project
is expected to yield notable cost savings of €172,000 in waste
water fees and €137,000 in energy costs for the fiscal year
2022-2023, along with saving 1,400 MWh of energy. Beyond
financial benefits, this project underscores a commitment to Economisers at the Emmerich manufacturing facility
sustainable and responsible energy management for a greener and
more efficient future.
Other emissions – monitoring air quality/ Energy Management – Our Commitment to

pollution Efficiency
NOx emissions 3,607.63 mt KLK is committed to efficient resource utilisation and strives
to incorporate green energy wherever feasible in both our
SOx emissions 2.44 mt
upstream and downstream operations. While our use of
Persistent organic pollutants (POP) 0 mt renewable energy is limited, we firmly believe that every shift
Volatile organic compounds (VOC) 1.58 mt away from non-renewable sources contributes positively
to the environment. Recognising that non-renewable
Hazardous air pollutants (HAP) 0 mt
energy remains a significant portion of our consumption,
Particular matter (PM) < 10 µm 22.88 mt we are dedicated to actively reducing our overall energy
Other standard categories of air emissions 0 mt consumption.
identified in relevant regulations
Energy intensity for Plantation and Oleochemical
Average Energy Usage for Plantation Energy Intensity for Oleochemical

(GJ/mt of CPO produced) (GJ/mt prod vol)
0.43 0.41 0.38 3.80 3.45 3.36
FY2021 FY2022 FY2023 FY2021 FY2022 FY2023
Downstream energy consumption breakdown for Oleochemical

2021 2022 2023
Energy consumption within the organisation Unit (GJ) Unit (GJ) Unit (GJ)
(A) Non-renewable fuel consumed 8,108,148 7,137,593 7,592,892

(B) Renewable fuel consumed - 39,923 88,175
(C) Electricity, heating, cooling & steam purchased for consumption 2,758,276 2,444,153 2,318,367
(D) Self-generated electricity, heating, cooling & steam (which are 123,395 - -
NOT consumed)
(E) Electricity, heating, cooling & steam SOLD 66,420 37,456 54,576
(F) Total energy consumption within the organisation = 10,923,398 9,584,213 9,944,858
(a) + (b) + (c) + (d) – (e)
Reduction in energy requirement of products and services for Oleochemical
Unit 2023
Reduction of energy consumption GJ 21,016
Total renewable energy generated and consumed for Plantation

Unit 2023
Biogas energy generated sold to national grid GWh 24.86

Biogas energy used as green energy for own operation GWh 34.45
Total power generated by biogas GWh 59.31
Total power consumption (including biogas energy used) GJ 474,737
OUR OR GANIS ATION
Water Footprint – Optimising Water Usage Oleochemical water withdrawal by source (total)
Our approach to water management is centred on the 2021 2022 2023
efficient use of this precious resource, with a strong Source
Unit (m )3
Unit (m )3
Unit (m3)
emphasis on optimising water consumption and reducing
wastage. We carefully consider the unique characteristics 1) Surface water 1,464,900 1,227,334 1,332,396
of the land, topography and the influence of weather
2) Groundwater 2,076,505 2,219,017 2,329,558
conditions, including the impact of both droughts and
floods on our plantations and mills. This year, we will 3) Seawater 1,766,849 1,750,067 1,509,787
continue to disclose water intensity in our upstream and 4) Produced 270,018 - -
downstream operations in addition to monitoring the water
amount of water withdrawn and discharged.
5) Third-party 2,878,734 2,548,763 2,596,270
water
Plantation and Oleochemical total water consumption Total water 8,457,006 7,745,181 7,768,011
withdrawal by
Plantation’s Total Oleochemical’s Total site
Water Consumption (m3) Water Consumption (m3)
Oleochemical water discharged by source (total)
7,487,718
6,991,600
4,294,174
3,605,356
2021 2022 2023

Source
Unit (m )3
Unit (m )3
Unit (m3)
1) Surface water 1,290,424 1,683,799 1,608,255

2) Groundwater 622,952 - -
3) Seawater 1,226,813 1,501,732 797,009
FY2022 FY2023 FY2022 FY2023
4) Third-party 1,000,060 954,784 1,067,333
water
Plantation and Oleochemical average water intensity Total water 4,140,249 4,140,315 3,472,597
discharged
Water Usage Rate for Plantation
(m3/mt FFB processed)
Oleochemical Water – percentage and total volume of
1.38 1.40 1.27 water recycled and reused
2021 2022 2023
Percentage of Water recycled 7% - 6%

and reused
Waste & Effluent - Controlling Hazardous

and Non-Hazardous Materials
FY2021 FY2022 FY2023
We are proactive in monitoring and responsibly disposing
Water Intensity for Oleochemical (m /mt prod vol) 3 of scheduled waste items (including oils, lubricants,
fuel filters, chemicals, and pesticide containers) in strict
1.30 1.30 1.73 adherence to environmental laws and local regulations.
We have also begun more in-depth monitoring of waste
and effluent, including waste breakdowns from upstream
activities, waste intensity from downstream activities,
waste generation and disposal (hazardous and
non-hazardous) as well as the quality of discharged water.
FY2021 FY2022 FY2023

Plantation - scheduled waste breakdown Oleochemical – total & waste intensity
Scheduled Waste Waste By Composition (mt) 2023

Breakdown (mt) 2021 2022 2023
Used Oil 144.71 197.47 210.09 Hazardous
Inks and Paints 0.34 11.28 1.202

Generated 9,424
Chemical 53.00 70.62 78.87
Diverted from Disposal 764
Containers
Directed to Disposal 2,190
E-Waste 1.90 3.75 3.39
Used Batteries 9.87 13.30 17.53 Non-hazardous
Used Oil Filters 19.65 22.61 32.23
Generated 23,230
Used Hydraulic Oil 0.00 3.72 2.31
Diverted from Disposal 6,686
Oily Sludge 0.00 0.00 0.00
Directed to Disposal 12,602
Clinical Waste 0.17 0.12 0.21
Total waste 32,653
Waste directed to disposal by disposal operation for Oleochemical
Unit (mt)
2021 2022 2023
Hazardous
Waste Onsite Offsite Total Onsite Offsite Total Onsite Offsite Total
Incineration (with 0 7,649 7,649 0 7,358.63 7358.63 0 5,935.21 5,935.21
energy recovery)
Incineration (without 0 360 360 0 477.011 477.011 0 400.45 400.45

energy recovery)
Landfilling 0 611 611 0 347.57 347.57 0 498.84 498.84
Other disposal 0 421 421 0 789.34 789.34 0 989.62 989.62

operations
Total 0 9,041 9,041 0 8,972.55 8,972.55 0 7,824.12 7,824.12
Non-Hazardous
Incineration (with 0 4,590 4,590 0 4,463.14 4,463.14 0 4,757.73 4,757.73
energy recovery)
Incineration (without 0 2,016 2,016 10.14 1,164.15 1,174.29 0 1,369.06 1,369.06

energy recovery)
Landfilling 0 8,747 8,747 0 11,390.97 11,390.97 0 11,918.63 11,918.63
Other disposal 0 239 239 0 432.43 432.43 0 962.96 962.96

operations
Total 0 15,592 15,592 10.14 17,450.69 17,460.83 0 19,008.38 19,008.38

OUR OR GANIS ATION
Waste diverted from disposal by recovery operation for Oleochemical
Unit (mt)
2021 2022 2023
Hazardous
Preparation for 0 0 0 0 1.49 1.49 0 480.94 480.94
reuse
Recycling 81 1,548 1,629 17.35 1,511.74 1,529.12 0 1,009.14 1,009.14
Other recovery 0 399 399 462.53 1,498.86 1,961.39 0 1,196.36 1,196.36

operations
Total 81 1,947 2,028 479.88 3,012.09 3,492 0 2,686.44 2,686.44
Non-Hazardous
Preparation 0 1,698 1,698 0 1,771.02 1,771.02 0 160.39 160.39
for reuse
Recycling 0 2,550 2,550 0 2,936.12 2,936.12 0 1,976.76 1,976.76
Other recovery 0 4,552 4,552 612.69 2,337.91 2,950.6 0 8,579.52 8,579.52

operations
Total 0 8,800 8,800 612.69 7,045.05 7,657.74 0 10,716.67 10,716.67
Total water discharged by quality & destination for Plantation
Total treated waste water discharged (Effluent only): 2022 2023
Quantity of water discharged (m3) 1,852,347.40 1,271,699.99

Effluent water quality, e.g. Chemical Oxygen Demand (“COD”) (mt) 281.18 169.76
Average COD analysis in treated waste water (mg/L) 151.80 1,634.25
Agrochemical and Raw Material Usage – Renewable & non-renewable materials usage
Continuous Efforts for Reduction breakdown
In our ongoing efforts to minimise the release of chemical Weight or volume of raw materials
compounds into the natural environment, KLK is actively that are used to produce & package
reducing the use of non-renewable materials, but also the Group’s primary products mt
potentially harmful substances used in our operations like
pesticides, herbicides, and fertilisers. The excessive use Renewable Materials
of agrochemicals carries the risk of soil contamination and
potential leaching into nearby water sources, posing a 1) Raw materials used 1,599,007.50
threat to the local community.
2) Associated process materials 12,785.93
Rather than relying heavily on agrochemicals, we implement
3) Semi-manufactured good or parts 25,742.79
more natural techniques, such as mulching and composting
in place of chemical fertilisers. Additionally, for pest 4) Materials for packaging purpose 10,708.58
management, we are promoting the cultivation of plants
with natural repellent properties against common pests Non-renewable Materials
and insects, contributing to the circularity of nature’s pest
control mechanisms. 1) Raw materials used 231,160.95
Breakdown of fertiliser, herbicide & pesticide 2) Associated process materials 3,944.60
consumption in 2023
3) Semi-manufactured good or parts 10,048.00
Fertiliser (mt) 317,593
4) Materials for packaging purpose 4,245.47
Herbicide (litres) 979,017
Total weight or volume of materials 1,897,643.81
Pesticide (litres) 416,114 (Renewable + Non-renewable)
MARKETPLACE
Sector-Specific Certifications – Verified Sustainable Palm Oil
In keeping with our reputation of being a prominent These certifications, complemented by our robust
producer of high-quality, certified palm oil products through traceability measures, not only affirm the quality and
a vertically integrated and sustainable approach, KLK sustainability of our products but also significantly
is unwavering in its dedication to upholding its product enhance our credibility and competitiveness in the global
certifications. We place particular emphasis on adherence marketplace. Our adoption of these rigorous certification
to sector-specific standards like RSPO, ISCC, MSPO systems reflects our deep-seated commitment to
and ISPO, among others. These certifications serve responsible and sustainable palm production.
as a cornerstone of our commitment to producing
environmentally responsible and ethically sourced palm KLK’s certification progress (%)
products.
KLK Group
• Roundtable on Sustainable Palm Oil (“RSPO”)
RSPO MSPO ISPO ISCC
A global sustainable palm oil initiative with the
Certified 76% 100% 96% N/A
objective of promoting the growth and use of sustainable
Estates (95%)*
oil palm products through credible global standards
and multi-stakeholder governance. RSPO certification Certified Palm 78% 100% 100% 20
status can be found here: https://www.iscc-system.org/ Oil Mills (100%)*
certification/certificate-database/all-certificates/
* Excludes KLK Sawit Nusantara (“KSN”)
• Malaysian Sustainable Palm Oil (“MSPO”)
A set of standards governing the Malaysian palm oil Status on pending RSPO certification and target dates
industry and covering the entire supply chain including
This year we are reporting on RSPO certification on a Group
plantations, independent growers, smallholders
level, without a regional breakdown. The drop in RSPO
and palm oil mills. MSPO certification status can be
certification in FY2022 was a direct result of our acquisition
found here: https://www.iscc-system.org/certification/
of IJM Plantation (now known as KSN), and not a failure in
certificate-database/all-certificates/
renewal or audit processes. Despite this, our commitment to
• Indonesia Sustainable Palm Oil (“ISPO”) these certifications remains steadfast and the certification
A mandatory set of standards created to improve process for these assets has been underway since 2021.
sustainability and competitiveness of the Indonesian This commitment is underscored by the recent certification
palm oil industry, and to support Indonesia’s of two plantations in Indonesia. Moving forward, we have
GHG reduction and environmental protection targets. set high-level target dates to complete further certifications
ISPO certification status can be found here: https:// for assets located in Malaysia by the end of 2024, in
mutucertification.com/client-ispo/ Indonesia by Q32025, and in Liberia by the end of 2025.
• International Sustainability & Carbon Certification Size of independent smallholder/plasma with RSPO
(“ISCC”) certification
A system for certifying biomass and bioenergy
industries with a focus on reducing GHG emissions, Volume purchase from plasma/ 355,425.7 mt
sustainable land use, protection of natural biospheres, independent smallholders/outgrowers/
and social sustainability. ISCC is recognised by the dealers that is RSPO certified
European Commission as being compliant with the Size of plasma/independent 9,143.8 ha
EU Renewable Energy Directive. ISCC certification smallholders that is RSPO certified
status can be found here: https://www.iscc-system.org/
certification/certificate-database/all-certificates/ Percentage of plasma/independent 36%
smallholder with RSPO certification
OUR OR GANIS ATION
Supplier Conduct – Protecting Workers’ our unwavering dedication to fostering a resilient

Rights and principled supplier engagement framework, thus
contributing significantly to a sustainable and conscientious
Protecting the rights of oil palm workers is a fundamental
business ecosystem. Broadly, SSGM will consider:
aspect of KLK’s commitment to ethical and sustainable
practices. Below are some key points illustrating our No Child Labour, Forced Labour and Human
dedication to safeguarding the rights and well-being of Trafficking Commitment
those of those who work for us and supply to us, whether
upstream or downstream: As stated in our Seven Sustainability Commitments, we
maintain a resolute stance against child labour, forced
Supplier Grievance Mechanism labour and human trafficking in the palm oil industry.
Our unwavering commitment to this cause is deeply
KLK has established a robust and transparent supplier
embedded in our corporate narrative. We implement
grievance redressal process.
stringent measures to prevent child labour, forced labour
We have established and operationalised the Supplier and human trafficking in our supply chain, including
Screening & Grievance Management (“SSGM”) Committee, thorough vetting of suppliers and continuous monitoring
chaired by the Chief Sustainability Officer. With clearly to identify and rectify any potential violations.
defined Terms of Reference (“TOR”), the SSGM’s purview
encompasses the meticulous screening of both new and Social and Environmental Impact
re-entry of suppliers, alongside the effective management Assessments (“SEIAs”)
of grievances within the palm oil supply chain. KLK is committed to conducting SEIAs for all our suppliers.
Notably, the Committee has diligently revised and ratified These assessments serve as a proactive measure to
an updated set of supplier screening criteria aligned with evaluate the potential impacts of our operations on both
the latest sustainability mandates and market trends. The the environment and the communities where we operate.
tangible impact of the SSGM initiative is evident in the By extending these assessments to all suppliers, we
successful onboarding of 14 new suppliers this year, the uphold our responsibility to mitigate any negative
re-entry approval for one supplier and the resolution of consequences and improve the well-being of workers and
19 grievance cases. These accomplishments underscore the surrounding communities.
Number of substantiated complaints on human rights violation across regions
Eight ongoing cases on KLK’s grievance website. Investigations are currently ongoing and status reports are open for
viewing by the public on www.klk.com.my/sustainability/grievance/.
Plantations Oleochemical
Proportion of new suppliers screened using environmental data 100% 100%

Proportion of new suppliers screened using social data 100% 100%
Number of existing suppliers screened using environmental data 13 Remark
Number of existing suppliers screened using social data 0 0
Proportion spent on local suppliers* 100% 95%
Remark: Oleochemical division monitored existing suppliers whose operations comprise of a total 15.7 million hectares
of landbank, 1.1 million hectares of planted area, 4,570 plantations, 1,434 mill suppliers and 463 group suppliers
* For the purpose of this report, we have chosen to place sole focus on palm oil supply as it makes up the largest portion of our purchases
by far. While we do depend on local suppliers for chemicals, services and other miscellaneous items, palm oil is the main ingredient in
our products and is the lifeline of our business. Limited to supply in Malaysia only.
Traceability and Supply Chain Sustainability

Establishing traceability and promoting transparency extends to our palm oil mills, refineries and kernel crushing
are very important in assuring the public that they are plants. However, tracking palm products from third-party
choosing sustainably-produced palm oil that does not suppliers, including smallholders, independent growers,
contribute to deforestation or wildlife habitat destruction. and smaller mills, refineries and production facilities,
This approach is essential for gaining the trust of our remains a challenge. Despite our best efforts, obtaining
customers, the broader public, and even our supply chain comprehensive data from these suppliers for thorough
partners. Our methodology for ensuring product traceability traceability analysis continues to be a hurdle.
Having identified “100% Traceability to Plantation for of Conduct for Suppliers makes it explicitly clear that
Refineries & Kernel Crushing Plants and to Mill for breaches and unethical business practices will lead
Oleochemical Plants” as one of our Seven Sustainability to the termination of their services.
Commitments this year, KLK is steadfast in its commitment
We maintain transparency in addressing grievances
to raising awareness among its suppliers about the
by publishing a list of grievances on our website. This
significance of traceability in broader conservation
list includes concise descriptions of the allegations,
efforts. We emphasise how providing adequate
the stakeholders involved, and the current status
documentation can enhance both supplier reputations
of investigations. For more information, please visit
and indirectly, KLK’s reputation. Furthermore, our Code
www.klk.com.my/sustainability/grievance.
Traceability Achievement as at 30 September 2023
KLK Traceability - Supply Chain Mapping & Traceability Achievement
KLK Supply Chain Traceability
i. Traceability to Plantations (“TTP”) for KLK Palm Oil Mills (“POMs”)

ii. Traceability to Mills (“TTM”) for KLK Refineries and Kernel Crushing Plants (“KCPs”)
iii. Traceability to Plantations (“TTP”) for KLK Refineries and KCPs
iv. Traceability to Mills (“TTM”) for KLK Oleochemical Plants
Traceability Achievement
Traceability to Plantations for KLK Refineries & Traceability to Mills for Oleochemical
KCPs
FY2019 59% FY2019 90%
FY2020 72% FY2020 85%
FY2021 79% FY2021 88%
CY2021 80% FY2022 88%
CY2022 94% CY2022 90%
Notes:
Traceability data is recorded according to calendar year, and not the financial year, to ease data collation. Therefore, traceability data from this
year onwards will be presented on a calendar year basis.
OUR OR GANIS ATION
As a Group, KLK has achieved significant milestones in European Union Deforestation Regulation
traceability compared to last year, with a 14% improvement (“EUDR”)
in TTP for KLK Refineries & KCPs and a 2% improvement
At KLK, we are committed to environmental sustainability
of TTM for KLK Oleochemical Plants. This is on top of us
and responsible sourcing practices. The EUDR is a
achieving 100% traceability from POMs to Plantations/FFB
critical response to the pressing issue of deforestation
Suppliers and 100% traceability from Refineries & KCPs to
within the EU’s jurisdiction, enforcing strict guidelines
POMs. This commendable improvement in performance
on businesses in the EU and requiring them to ensure
can be attributed to a breakthrough in raising awareness
their supply chains are free from deforestation-linked
among our suppliers through regular engagement,
products. This directive profoundly affects the entire supply
thereby enhancing practices and creating a more transparent
chain of the 7 commodities impacted, namely palm oil,
supply chain.
from upstream to downstream.
Supplier Engagement Workshops Having oleochemical plants operating within the EU,
KLK has formed partnerships with NGOs, specifically KLK’s compliance with EUDR becomes not only necessary
Proforest in Malaysia and Daemeter in Indonesia, to but imperative. For us it is not merely about adhering to
conduct supplier engagement initiatives. In the first the law; it is about fostering a commitment to sustainability
quarter of 2023, three engagement sessions were and responsible business practices. In addressing this
successfully conducted in Sabah, Peninsular Malaysia, EUDR challenge, the Group is intensifying our efforts to
and Riau. A total of 76 participants, representing 66 POMs reduce our tracebility gaps, as well as our engagements
within KLK’s supply chain, underwent training during with suppliers, regulatory bodies, industry associations
these sessions. Key topics covered included KLK’s and certification bodies. We are also exploring partnerships
sustainability direction, market demand, and traceability to with reputable platform and service providers who will
the plantation level. enable us to gather more accurate and detailed data on our
palm oil supply chain. We understand the vital importance
These engagement sessions played a pivotal role in of complying with the EUDR by December 2024 and are
strengthening relationships between KLK and its suppliers, dedicated to transparently communicate our efforts to our
fostering improved commercial collaboration and valued customers and partners.
sustainability practices. The impact of these engagements
is evident in the notable rise of KLK’s Midstream TTP
score from 80% to 94%. Recognising its success, this
engagement initiative will be integrated as an annual event
in KLK’s calendar, taking place every first quarter.
Supplier Sustainability Convention 2023

WORKPLACE
We firmly believe that our people
are the cornerstone of the company.
They are the cogs that keep our
wheels turning and are the reason for
our success. We are wholeheartedly
committed to safeguarding their rights
and fostering a safe, inclusive and
nurturing environment where they can excel
in their roles and broaden their skills and
knowledge, feel empowered, and flourish
both personally and professionally. As of
FY2023, our workforce comprises a total
of 48,487 employees, encompassing both
Malaysian and non-Malaysian staff, representing
a diverse range of roles and expertise across all
our operations in Malaysia, Indonesia, Liberia,
China and Europe. Each member of our workforce
is a vital part of our collective journey towards
sustainability and success. It’s important to note
that these workforce numbers do not represent the
entire group, but only the Plantation and Oleochemical
business segments, excluding Temix and joint ventures.
KL-Kepong Oleomas
THRIIL Values
T H R I I L
TEAMWORK HUMILITY RESULTS INTEGRITY INNOVATION LOYALTY
Going beyond Having an open Committed to Ethical leadership Levelling up Committed to
geographical, mind to recognise exceptional with a strong through new building a better
divisional and the strength execution and moral compass ideas and future together,
functional of others and excellence to that inspires every continuous with mutual
boundaries willingness to make a difference individual to do improvement trust and care
to achieve stretch ourselves in everything the right thing. to consistently while upholding
common goals. and grow. we do. exceed the Company’s
Collaboration is at expectations. interest as
the heart of our own.
all we do.
OUR OR GANIS ATION
Total workforce
Plantation Oleochemical
45,459 15,335 3,028 42
Permanent Contractors/temporary Permanent Contractors/temporary

staff staff staff staff
Percentage of executive, staff & worker
Plantation Employees by Category Oleochemical Employees by Category
3% 5%
18%
92% 55%
26%
Executive
Staff
Worker
We place significant emphasis on instilling a culture of integrity throughout our organisation. It is imperative that all our
employees, regardless of their roles or locations, fully understand and embrace this commitment to integrity. This culture
not only upholds our core values but also acts as a guiding principle for every action and decision we make. By nurturing
and protecting the rights of our workforce and by fostering a culture of integrity, we can create an environment in which our
employees can flourish and, in turn, contribute to our shared mission of responsible and sustainable practices in the palm
oil industry.
Diversity – Finding Strength in Our Equal Opportunity

Differences
Equal opportunity is a fundamental principle that underpins
As a Malaysian palm oil company, we understand the our hiring and promotion processes. We are committed
significance of fostering a diverse, equitable, and inclusive to providing fair and equal opportunities to all individuals,
workplace. To us, Diversity, Equality and Inclusion (“DEI”) irrespective of their background. In practice, this means
is not just a commitment but a core value that guides that we evaluate and select candidates based on their
our operations. We believe that embracing diversity in qualifications, experience and potential to contribute to our
all its forms, including but not limited to gender, race, company’s goals. Bullying, harassment, or discrimination in
religion, age, background, union membership or political any form is strictly prohibited and our policies are designed
affiliation, enhances our company’s resilience, creativity, to ensure that all employees have a level playing field to
and adaptability. Our DEI initiatives focus on creating an advance their careers. We actively seek to identify and
environment where every employee feels valued, respected rectify any potential biases, and we continuously work to
and empowered to contribute their unique perspectives. foster an environment where merit and potential are the
We firmly believe that by prioritising DEI, we unlock the full primary criteria for decision-making.
potential of our workforce, driving innovation and ensuring
a sustainable and equitable future.
Hiring Based on Capabilities

where all individuals have the opportunity to showcase
Our approach to hiring is rooted in meritocracy. We
their abilities and contribute to our company’s success.
prioritise assessing candidates based on their capabilities,
This approach ensures that our workforce is comprised
skills and qualifications. We believe that this approach
of talented individuals who are not only capable but also
not only benefits our organisation but also aligns with our
diverse, fostering a culture of excellence and innovation that
commitment to DEI and equal opportunity. By focusing on
drives our organisation forward.
capabilities, we create an inclusive recruitment process
Board female ratio
KLK adheres to the Bursa Malaysia Listing Requirement mandating at least one female director on its board, achieving
a current female representation of 22%, a consistent figure for the past three years. Despite this, KLK aspires to meet
the Malaysian Code on Corporate Governance (“MCCG”) recommendation of a 30% female directorship. The Board
remains committed to actively seek qualified women, whose appointments will be in the Company’s best interests.
Furthermore, the age distribution within our Board of Directors shows that 22% fall between 30-50 years old, while 78%
are above 50, a composition that has remained constant over the last three years.
Group gender, nationality and employment percentage
Women to total workforce Temporary workers to total workforce
FY2021 FY2022 FY2023 FY2021 FY2022 FY2023
20.8% 21.3% 20.4% N/A 28.5% 27.6%
The physically challenging aspects of oil palm harvesting and processing contribute to the male-dominated
composition of our workforce. Nevertheless, KLK is actively promoting gender diversity by encouraging more women
to apply for positions within the company. To address the specific challenges faced by different workforce segments,
e.g. women in a male-dominated industry, expectant women and working mothers, KLK has established Gender
Committees across its operations in Malaysia, Indonesia and Liberia with over 585 members. These committees
convene quarterly to gather feedback from the ground, allowing for the development of targeted initiatives that provide
greater assurance and security for minority groups within the workforce.
Number of employee turnover by category
Executive 144 38
Staff 153 81
Worker level 7,533 169

OUR OR GANIS ATION
Percentage of employees by age group
94% 92% 86% 68% 53% 47%
24% 34%
20%
8%
3% 5%
12% 22% 19%
3% 3% 6%
<30 y/o 30-50 y/o >50 y/o <30 y/o 30-50 y/o >50 y/o
Executive level
Staff level
Worker level
Percentage of employees by gender
92% 91% 49% 14%
51%
30%
4% 6% 22%
21%
4% 3%
Male Female Male Female
Executive level
Staff level
Worker level
Differently abled
There are a total of 139 differently abled employees across the entire Group. We recognise the unique perspectives
and talents that physically challenged individuals bring to the workplace, contributing to a more inclusive and
dynamic environment. This approach not only aligns with our DEI principles but also reflects our belief in the inherent
worth and potential of every individual, regardless of ability.
Parental leave
Our commitment to upholding labour standards goes beyond the borders of Malaysia, as we adhere to not only
Malaysian labor laws but also the local labor regulations in each of our international operations. In alignment with
our dedication to employee well-being, we surpass the statutory minimum requirements by offering annual leave that
exceeds the legal mandate, ensuring comprehensive healthcare benefits for our workforce, and provide maternity
and paternity leave. This approach not only strengthens our compliance with local labour laws globally but also reflects
our commitment to fostering a work environment that prioritises the holistic welfare of our employees.
Incidents of discrimination and corrective actions
There were no discrimination cases reported in FY2023.
Leadership programmes
We prioritise our people as the foremost asset and the driving force propelling us ahead. Recognising the pivotal
role of human capital in steering our organisation, we consistently invest in its development. For instance, leadership
development programmes are carefully tailored to our specific context. We conduct bespoke Annual Programmes
for employees of various levels, from Supervisors to Executives, Managers, and Senior Leaders. These programmes
are designed to enhance leadership skills, instil KLK Core Values, and foster team bonding. Our aim is to cultivate
future leaders who embody the distinctive KLK Identity and collaborate seamlessly across functions to achieve shared
objectives.
ANNUAL PROGRAMMES
Programme Title Target Audience
Senior Management Development Programme General Managers and above

Managers Development Programme 2.0 Managers to Senior Managers
Managers Development Programme 2.0 Assistant Managers to Managers
Executives Development Programme Executives to Senior Executives
Administrators Development Programme Personal Assistants, Secretaries
Supervisory Centre of Excellence Non-Executives, Supervisors
In addition to annual programmes, we also implement Technical Skills programmes to provide our people with
job-specific knowledge and skills necessary for success.
TECHNICAL SKILLS PROGRAMMES
Programme Title Target Audience
Technical Training (Level 1 & 2) Chemists, Engineers

Maintenance Hand Skills Chemists, Engineers
How to Handle Turnaround Engineers, Superintendents
Technical Training for Supervisors Supervisors
OUR OR GANIS ATION
Occupational Safety & Health – Caring for Workers’ Well-being
KL-Kepong Oleomas
Occupational Safety and Health (“OSH”) policies and We place paramount importance on safety and, to this end,
procedures are the foundation of our commitment to conduct regular OSH awareness training sessions. These
creating a secure environment for not only our employees training programs serve as a powerful tool for enlightening
but also for our valued customers, suppliers and all visitors our employees about several critical aspects. This includes
to our facilities. In our Seven Sustainability Commitments our current safety statistics, as well as the safety procedures
pledged this year, we aim for zero fatalities and to reduce we have in place, all of which are in strict accordance
Loss Time Injury by 25% on average by 2025/2026. with MS 1722:2011 and ISO 45001 – Occupational
Safety and Health Management Systems. Additionally,
Rather than relying solely on strict enforcement of safety
we comprehensively cover the various types of injuries
procedures, our approach involves an emphasis on
and occupational hazards that could potentially occur.
education. We believe in educating our employees and
cultivating their understanding of why safety matters – both
for their own well-being and for the overall success of the
company. This approach encourages active participation
and buy-in from our workforce, fostering a culture where
safety is a shared responsibility and a top priority for
everyone involved.
Certification
Certification holds a pivotal role in our commitment towards excellence, sustainability and safety at our oleochemical plants.
We are pursuing the right certifications to not only comply with industry standards but also to benchmark ourselves against
best practices. The table below provides an overview of the current certification status of our oleochemical plants, both in
Malaysia and internationally:
KLK POR POR Palm Oleo Davos Life KLK

Sites KLK Dumai
Oleomas (Gate A) (Gate B) Klang Science Bioenergy
Cetifications/
Malaysia Malaysia Malaysia Malaysia Malaysia Indonesia Malaysia
Location
ISO9001 4 4 4 4 4 4 4
ISO14001 In Progress 4 4 In Progress In Progress In Progress In Progress
ISO45001 In Progress 4 4 In Progress In Progress In Progress In Progress
Ecovadis 4 4 In Progress 4 In Progress In Progress In Progress
RSPO 4 4 4 4 4 4 4
Sedex 4 4 4 4 In Progress In Progress In Progress
MSPO 4 4 4 4 4 N/A 4
ISCC 4 No No No No No 4
FSCC or 4 In Progress In Progress 4 4 In Progress In Progress

ISO 22000 (Applicable
for Refined
Glycerine
only)
MS1480:2019 4 4 In Progress 4 4 N/A In Progress

(HACCP) (Applicable
for Refined
Glycerine &
CEME only)
MS1514:2022 4 4 In Progress 4 N/A N/A In Progress

(GMP) (Applicable
for Refined
Glycerine,
CEME, SLS
& SLES only)
Kosher 4 4 4 4 4 N/A 4
(for Amide
Only)
Halal 4 4 4 4 4 N/A 4
FDA 4 4 In Progress 4 4 N/A In Progress
ISO 50001 N/A N/A N/A N/A N/A N/A N/A
Exipact GMP/GDP N/A N/A N/A N/A N/A N/A N/A
GMP+ N/A N/A N/A N/A N/A N/A N/A

OUR OR GANIS ATION
KLK Taiko
KLK KOLB KLK KOLB KLK Kolb KLK KLK
Sites Emmerich Palm-Oleo
Hedingen Moerdijk Delden Tensachem Emmerich
(Dusseldorf) (ZJG)
Cetifications/
Switzerland Netherlands Netherlands Belgium Germany Germany China
Location
ISO9001 4 4 4 4 4 4 4
ISO14001 4 4 4 4 4 4 4
ISO45001 4 4 4 4 4 In Progress 4
Ecovadis 4 4 4 In Progress 4 4 4
RSPO 4 4 4 4 4 4 4
Sedex No No No No In Progress In Progress 4
ISCC 4 4 In Progress In Progress No No In Progress
FSCC or In Progress In Progress In Progress In Progress 4 4 4

ISO 22000
Kosher 4 4 4 4 4 4 N/A
Halal 4 4 4 No 4 4 N/A
ISO 50001 In Progress In Progress In Progress In Progress 4 4 In Progress
Exipact GMP/GDP 4 No No No 4 4 In Progress
GMP+ No No No In Progress 4 No In Progress
Lost Time Injury (“LTI”)
Accidents - Accidents - Lost Days - Total Man Hours LTI Frequency LTI Severity
Fatal Major Major Worked Rate Rate
Location 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023
Plantation
Malaysia - - 779 789 3,452 3,620 36,347,780 39,989,690 48.19 19.73 242.04 90.52
Indonesia 3 3 2,789 2,337 23,913 26,619 46,202,815 49,682,822 60.43 47.04 515.57 535.78
Liberia - - 149 51 11 390 3,299,296 2,037,041 0.30 25.04 3.33 191.45
Oleochemical
KLK
- - 8 11 362 861 6,243,084 7,336,320 1.76 1.50 59.11 117.36
OLEO
Notes:
• LTI: A work-related incident causes injury to an employee or contract worker resulting in him or her being unable to work the next
working day or shift after the incident as determined by a competent medical doctor.
• Accidents - Major: (All LTI incidents that results in at least 1 lost work day are classified as Major Accidents)
• Lost Days - Major: ( no of lost work days at worksite due to an LTI or Major Accident )
• Total Man Hours Worked : (sum or total hours worked on site combining both staffs and contractors)
• LTI Frequency Rate: (No. of Major accident x 1,000,000)/Total man-hour worked)
• LTI Severity Rate: (No. of day lost due to Major Accident x 1,000,000) / Total man-hour worked)
Fatalities in Indonesia
The incidents leading to each work-related fatality varied, one from a lightning strike, another involving a quick truck
accident and the third due to a neck injury from a fall. Rigorous investigations, aligned with our standard operating
procedures, were conducted to analyse the circumstances and identify preventive measures. In response, additional
safeguards have been implemented and safety procedures updated. KLK has been in contact with the families affected,
extending our heartfelt sympathies to them and offering financial aid as a demonstration of our support during this
challenging period.
Number of employees trained on health and safety standards
13,010 2,734
Safety & health committee - by gender and region
Our Safety and Health Committees convene regularly to address safety concerns and fortify procedures as needed.
With a collective count of 2,872 representatives (i.e. 42 more than in FY2022) spread across our Plantation and
Oleochemical segments, these committees reflect the gender distribution within our workforce. Notably, the Plantation
segment has a 20.5% female representation, while Oleochemical segments stands at 28%. Occupational Safety and
Health visits are conducted bi-annually to ensure complete adherence to our safety protocols across all KLK sites.
Safety Training Programmes
24 December 2022 21-22 June 2022 June 2023

Awareness and refresher training for Confined space rescue training for Safety knowledge competitions,
fire and emergency drill at KLK Dumai Palm Oleo Rawang rescue team accident simulation, stretcher transfer,
and protective clothing wearing
No. of Participants: 19 No. of Participants: 20
competitions during safety month at
TPOZ
No. of Participants: 200
29 June 2023 12-13 June 2023 May 2023

Comprehensive emergency fire Safety, health, environment and food ISO 45001/14001 workshop Session
exercise for barrel warehouse at TPOZ saty week at Palm Oleo Klang at KLK Oleomas. All ISO45001/14001
committee members
No. of Participants: 350 No. of Participants: 290
OUR OR GANIS ATION
Talent Development –
Providing Equal Access
to Training
The Group is dedicated to ensuring
that all our employees, regardless
of their background or gender, have
equitable access to comprehensive
training and development programmes.
We firmly believe that these opportunities
are essential for both individual growth and
the continued success of our company.
For FY2023, we are pleased to report a
significant milestone in our commitment to
employee development. A total of 81,952 hours
of training have been delivered via external trainers,
aimed at enhancing the skills and knowledge of KLK Plantation Managers’ Conference 2023
our workforce. This comprehensive training initiative
not only aims to bolster the capabilities of our team
members but also to provide them with the tools
necessary for personal and professional growth.
We observe consistent participation across various
organisational levels. Executives, staff members and workers
all actively engage in training programmes, emphasising
our commitment to continuous professional development at
every tier within the company. This inclusive approach ensures
that employees at all levels benefit from relevant and impactful
learning opportunities, contributing to a skilled and motivated
workforce.
Senior Management Development Programme for KLK OLEO
Hours of training by level
26,044
1,745
33,659
Total 4,286 Total
6,038 75,913
hours hours
Executive
Staff 16,211
Worker
Anti-Corruption – Instilling Integrity in Our Workforce

Promoting an anti-corruption stance is crucial for our company. As a responsible corporate entity, we recognise the
far-reaching consequences of corruption and its adverse impact on society, the environment and the business world. In order
to combat corruption at every level of the organisation, we have put in place:
Stringent Policies and Codes of Conduct Due Diligence in Supply Chain
We have established robust policies and We conduct thorough due diligence when
a comprehensive Code of Conduct that selecting and monitoring suppliers and
explicitly forbids any form of corruption, business partners. This process includes
including bribery, embezzlement, and evaluating their anti-corruption measures
fraudulent practices. These policies set and ensuring that they align with our
clear expectations for our employees and commitment to ethical practices.
stakeholders.
Compliance with Laws & Regulations

Employee Training and Awareness
We regularly review and update our policies
We place great importance on educating our
to remain in compliance with evolving
employees about the negative consequences
anti-corruption laws and regulations.
of corruption. Regular training sessions and
awareness campaigns help our workforce
understand the importance of ethical
behaviour and the detrimental effects of
corruption on our organisation and society Zero Tolerance Approach
at large. We maintain a zero-tolerance approach
toward corruption at all levels of our
organisation. Violations are met with swift
Transparency and Reporting Mechanisms and appropriate action, which may include
We maintain a transparent reporting system legal consequences and termination of
that enables employees, customers, business relationships.
suppliers and other stakeholders to report
any suspicions of corruption. Whistleblower Regular Auditing and Monitoring
protection is a fundamental component of this
We conduct regular internal and external
system. Our comprehensive Whistleblowing
audits to ensure compliance with our anti-
Policy and mechanism ensure the safety and
corruption policies. These audits help
anonymity of those who come forward. We
identify and rectify any potential issues
also encourage reporting of grievances on
while reinforcing our commitment to ethical
our corporate website.
practices.
Percentage received anti-corruption training
Executive level 100% 99%
Staff level 100% 94%
Worker level – 97%
Note: Plantation workers are not required to undergo anti-corruption training

OUR OR GANIS ATION
Number of functions and sites assessed for corruption-related risks
Between February and March this year, all 54 sites encompassing functions and business units across operational
regions had carried out annual Anti-Bribery and Anti-Corruption (“ABAC”) Control Self-Assessment (“CSA”).
This exercise is led by Regional Heads and Heads of Departments, to self-evaluate the effectiveness of oversight,
risk management and controls implemented. The evaluation includes entities such as KLK Hardwood Flooring,
KLK Land, KL-Kepong Rubber Products and KLK Farms, addressing risks across diverse operational domains. It is
important to note that the assessment deliberately excludes Italy-based Temix, an oleochemical company acquired by
KLK OLEO earlier this year. Temix will be included in next year’s assessment.
Anti-corruption incidents
In this financial year, six anti-corruption incidences were reported via whistleblowing channels and uncovered during
audit visits. Investigations and domestic inquiries were carried out before meting out proper disciplinary actions
against the affected personnel.
Human Rights – Ensuring Fair and Human Rights Risk Assessment

Humane Treatment for All In last year’s annual report, we announced our intent to
We are committed to enforcing the appropriate labour conduct a human rights risk assessment focused on our
standards to ensure that our employees are justly estates and mills in Peninsular Malaysia in 2023. We followed
compensated for their efforts within reasonable working through with that pledge this year and appointed a third
hours. Our dedication to human rights extends to both party to focus on two critical areas: recruitment fees paid
our workforce and the communities where we operate. We by workers seeking employment and a human rights risk
take a firm stance against undesirable practices such as rating based on the International Labour Organisation’s
human trafficking, forced labour and child labour, as (“ILO”) forced labour indicators in our operations. The
explicitly outlined in our code of conduct and sustainability third party ran an extensive survey visiting 17 sites and
policy. interviewing up to 1,629 guest workers. This covers up
to 71% of guest workers population across all sampled
At KLK, we hold an uncompromising position against Operating Centres (“OCs”) in Peninsular Malaysia at the
any form of discrimination, whether based on factors time of assessment. The evaluation showed that KLK has
like race, religion, gender, age, disabilities, nationality, or been consistently improving to eliminate systemic and
any other characteristic. Additionally, we maintain a strict critical human rights risks.
zero-tolerance policy against bullying and harassment.
Our workplace is designed to be inclusive, respectful and Where recruitment fees are concerned, the study validates
equitable. KLK’s internal understanding of the state of recruitment
fees our workers face, and when considered with industry
In line with our commitment to protecting the rights of all best practices, helps to inform decisions moving forward.
our employees, particularly guest workers, we have a no
recruitment fee policy. This policy safeguards workers Where gaps were found, corrective action plans are in
from the financial burden and potential exploitation during progress. For instance, KLK is working on enhancing its
the recruitment process. We assume full responsibility grievance mechanism. Going forward, after addressing
for absorbing all employer-related statutory recruitment forced labour risks, the focus will shift to other areas,
fees, ensuring that our employees are treated fairly and such as child labour assessment in other operating
ethically from the very outset of their work experience centres. We are committed to continue scrutinising our
with us. human rights practices and effecting change where
necessary.
By upholding these principles and policies, we strive to
create an environment where all employees are treated
with dignity, respect and fairness, ensuring that their rights
and well-being are safeguarded at all times.
Safeguarding Our Employees
Investing in the well-being of employees and workers is a key fundamental of a thriving and socially responsible organisation.
It is a moral imperative. By offering support for physical and mental health, promoting a healthy work-life balance and
providing opportunities for skill development, companies empower their workforce to flourish. A happier, healthier workforce
not only benefits individuals but also the organisation as a whole.
Right to Adequate Housing
KLK is committed to providing a safe,

inclusive and harmonious workplace that
is an enduring part of our rich heritage.
Understanding the fundamental human

right to adequate housing, the Group
is investing in the reconstruction and
enhancement of workers’ residences in
Malaysia and Indonesia. These homes
New workers’ housing in Ladang Changkat Asa, Perak
come with essential amenities, including
electricity, clean water, sports facilities and
place of worship.
As we strive for a harmonious workplace,

we place a strong emphasis on fostering
an environment that embraces and
respects cultural and religious diversity.
Our active promotion of mutual respect
and encouragement of sensitivity toward
different cultural and religious practices
Workers’ housing in Kebun Putra Bongan Jaya in East Kalimantan are integral to our commitment.
Clean water is provided to our employees in the plantations
Mosque at KLK Kebun Mandau, Riau Church at KLK Kebun Mandau, Riau
OUR OR GANIS ATION
Data Protection – Protecting Against Breaches of Privacy
Protecting against data breaches is of paramount concern for our company. The responsible handling of sensitive
information, be it related to our operations, employees, customers, or stakeholders, is integral to maintaining trust
and safeguarding our reputation. These are some of the measures we have put in place to mitigate the risk of
data leakage:
• In April, we updated our Group IT & Security Policy to ensure good governance and coordinate security activities across
the organisation
• Regular “Whitehat” phishing exercises are conducted to assess and enhance our security measures
• All employees undergo annual IT Security Awareness training to stay informed about evolving cybersecurity threats.
As a result of these measures, KLK has received zero substantiated complaints regarding breaches of customer
privacy or losses of customer data. This solid track record reflects our unwavering commitment to safeguarding sensitive
information and maintaining the trust of our customers. More information of KLK’s Personal Data Notice Statement can be
found at klk.com.my/pdpa/
We take pride in championing our employees’ Freedom

of Association and safeguarding their rights to engage in
collective bargaining. A significant 16,369 employees are
active union members. We firmly believe that encouraging
union activity is crucial as it empowers employees to freely
organise, voice their concerns collectively and negotiate
for fair working conditions, fostering a democratic and
inclusive workplace culture.
Number of Union
Categories Members
Plantation – Malaysia 5,635

Plantation – Indonesia 9,340
KLK employees in Ladang Lekir, Perak Plantation – Liberia 360
KLK OLEO 1,034
Unions – Protecting Employees’ Rights
Total 16,369
Total membership across the Group

We believe that by nurturing transparent and constructive
12,194 9,724 16,369 relationships between employees and employers, we create
an environment where open engagement and dialogue
thrive. This commitment is not only a testament to our
dedication to human rights but also a strategic decision
to enhance our talent management practices. By fostering
such an environment, we aim to boost employee morale,
cultivate a sense of belonging, and consequently, elevate
overall productivity. When employees have the freedom to
voice their concerns, negotiate for fair terms and be part
of a collective effort, we all benefit from a more vibrant and
FY2021 FY2022 FY2023 motivated workforce.
Well-being of our People
Wellness and Sustainability Week

At KLK, the well-being of our employees is vital, and as such, we have initiated an annual Wellness and Sustainability
Week to advocate for healthy living.
During this event, a series of informative health talks were organised, providing employees with valuable insights into
enhancing their overall health and well-being without compromising sustainable living. These interactive sessions
covered a wide spectrum of topics, including spectrum of topics, including benefits of a healthy and sustainable diet,
blood donation drive, and ways to reduce waste and thus reduction in our carbon footprint.
Expert professionals from various fields were invited to lead these discussions, ensuring employees received
accurate and current information. Furthermore, health screenings, encompassing tests for blood glucose levels, lipid
profile, full blood count, liver function and eye examinations were made readily available to all employees.
Health talk Eye examination Health screening
Blood Donation
Drives
Apart from the informational

talks talks and health
screenings, blood donation
drives were also organised
Blood donation drive on-site to ensure a steady
supply of blood for those
in need and to foster a
sense of community and
KLK employees donated 952 bags of blood social responsibility in our

workforce.
that could potentially save 2,856 lives
Sustainability & Climate Change Awareness Forums
We are firm believers in upholding the most stringent standards

of business ethics and conduct, with Sustainability serving as a
critical pillar of KLK’s operations. As part of our Wellness Week,
we integrated a range of sustainability discussions, including
topics such as Advancing Low CO2 Emissions, Minimising Our
Carbon Footprint and Cultivating a Zero Waste Mindset. These
programmes were designed to enhance awareness and foster
a broader commitment to sustainability among our employees
throughout the company. CO2 Emission talk
OUR OR GANIS ATION
Employee Wellness
Prioritising the well-being of our employees has a direct impact on our ability to successfully achieve organisational
goals and objectives. We consistently advocate for a healthy work-life balance among our workforce, offering a range
of sports and leisure activities to support this endeavour.
Yoga class KLKCare Running Club training
Aqua Zumba Inter-department bowling tournament
Baking class Inter-company badminton tournament
Football tournament Sports Day

Community & Biodiversity

Community engagement and biodiversity
protection are not just corporate obligations; they
are integral parts of our identity and ethos. We
understand that our operations are intricately linked
to the local communities and the rich biodiversity
that surrounds us. Our journey towards community
engagement and biodiversity protection is a testament
to our commitment to responsible and sustainable
practices. To further reinforce this, the Seven Sustainability
Commitments we pledged this year includes our
commitment to “Continue to invest in education, environment,
Food donation to the Orang Asli community in Royal Belum State Park, Perak
and community.”
Fostering Strong Community Bonds

Community engagement begins with the recognition that
we are not merely operators in an area but an integral part of
the local ecosystem. We prioritise building strong, mutually
beneficial relationships with the communities in which
we operate. Through ongoing dialogues, partnerships
and collaborative projects, we work together to address
common challenges, promote development and improve
the quality of life for all.
KLK is dedicated to advancing equitable educational
opportunities and narrowing the educational divide between Kindergarten students in Lahad Datu, Sabah
urban and rural areas. We have allocated significant
resources to ensure that students in the regions where we
operate have access to high-quality education. In FY2023,
we have committed RM8.5 million to sustain and enhance
160 childcare, learning centres and schools within our
plantations, providing education to approximately 11,979
children of our plantation workers and from underprivileged
communities in rural settings across Sabah (Malaysia),
Indonesia and Liberia.
In addition to primary education, we have also established
Community Learning Centres (“CLCs”), which serve as
non-formal educational institutions in Sabah. These CLCs Palm Bay School in Liberia
have been established in collaboration with the Indonesian
Consulate and received approval from Malaysia’s Ministry
of Education. While these schools adhere to the Malaysian
curriculum, they have incorporated elements from the
Indonesian syllabus to facilitate a seamless transition for
students who may eventually return to their home country.
No of Students
Malaysia Indonesia Liberia

Students: Students: Students: Students participating in a co-curriculum activity at Sekolah Menengah
2,530 8,837 612 Pertama Swasta KLK, Mandau

OUR OR GANIS ATION
Yayasan KLK SCHOLARSHIPS
Founded in 1985, Yayasan KLK has been deeply involved

in charitable endeavours, with a primary focus on offering
financial support to gifted individuals facing economic
constraints. The Foundation is firmly committed to fostering
and empowering the younger generation, acknowledging
their capacity to make meaningful contributions to the
advancement of our nation.
During FY2023, Yayasan KLK granted RM620,500 in

scholarships to 12 talented young Malaysians who
are pursuing their studies at a Malaysian institution of
higher learning. After completing their studies, these
scholars may also have the opportunity to explore career
prospects within KLK or its affiliated business entities.
Yayasan KLK 2023 scholars
Enriching & Empowering Our Communities
At KLK, we are dedicated to making a positive and lasting impact on the communities where we are present. Our commitment
to the well-being of these communities goes beyond words. In fact, it is deeply ingrained in in our corporate culture.
We believe that being a responsible corporate entity entails actively engaging and supporting the people living in the vicinity
of our operations.
Our Corporate Responsibility (“CR”) initiatives encompass a diverse range of programmes designed to uplift, empower and
enhance the quality of life for the residents in these areas. From educational support to healthcare services, environmental
conservation efforts to community development projects, we take a holistic approach to contribute to the sustainable
growth and prosperity of these communities. We believe that by fostering stronger ties and investing in the welfare of the
people who share their lives with us, we can create a better and more harmonious future together.
Infrastructure Improvement
We strive to enhance the quality of life in our community

by investing in infrastructure development, including the
construction of roads and bridges in rural regions.
Repairing roads and bridges for the local communities

Community Engagements Back to School

We also aim to cultivate a strong, positive bond with Education stands as the fundamental pillar
the underserved community through visits, festive of a thriving society and acts as a vehicle for
celebrations and food aid programmes. Through socio-economic advancement. Yet, economic
these efforts, we hope to brighten the lives of less limitations frequently act as barriers to the
fortunate individuals by bringing them moments of educational progress of students hailing from
happiness and joy. marginalised backgrounds. KLK has initiated
the ‘Back to School’ programme to address this
disparity by extending equal educational
opportunities to all students.
In FY2023, we supplied school bags, uniforms
and essential stationery items to 1,365 students
throughout Malaysia. Through this programme, our
goal is to promote inclusivity, paving the way for
a brighter future for students in the communities
within which we are active.
Buka Puasa with orphans from Panti Asuhan Harapan

Pekanbaru, Indonesia
KLKCare volunteer spending time with the elderly Provision of school uniforms to students of Sekolah
Kebangsaan Seri Mutiara, Ipoh
Educational trip to Taiping Zoo, Perak for underprivileged

children
‘Back to School’ programme at Ladang Ayer Hitam in Negeri

Sembilan
Donation of school bags & stationery to
Educational trip for students of PPKI Sekolah Kebangsaan 1,365 students across Malaysia.
Kampung Idaman, Klang
OUR OR GANIS ATION
Supplying Food and Personal Care Items

We continue in our attempts to ease the economic challenges faced by the vulnerable communities in our operational
areas by contributing food provisions and essential personal care items to those who require assistance.
Provision of food and personal care items to Orang Asli in Royal Belum
State Park, Perak
Contribution of groceries & hygiene items to
300 Orang Asli families in Royal Belum State

Park, Perak.
Donating food supplies to Cianjur Earthquake victims in Indonesia
Philanthropy
In our quest for community empowerment, we continue our support for non-profit organisations that operate in
the fields of education, environmental conservation, sports, healthcare and culture as well as humanitarian causes.
Our assistance takes on many forms, including grants, monetary contributions and in-kind donations. In FY2023,
our contributions totalled RM4.8 million, benefitting educational institutions, performing arts organisations and
NGOs that align with our shared values and objectives.
Art Education
RM170,000 RM66,700
Humanitarian &
Health & Sports Community
RM1,224,500 RM3,357,140
KLK CEO Tan Sri Lee Oi Hian (left) presenting the mock cheque to
TOTAL: Prime Minister YAB Dato’ Seri Anwar Ibrahim and Minister of Foreign
RM4,818,340 Affairs YB Datuk Seri Dr. Zambry Abdul Kadir (right) in aid of the
Türkiye-Syria Earthquake victims.
Special Meals for Inmates during Malaysia As part of the KLKCare CR initiative, we organised a
Day special meal for approximately 11,550 inmates in Tapah,
Taiping, and Sungai Buloh prisons to mark Malaysia Day
Incarceration presents undeniable challenges, with
on 16 September 2023. Additionally, we recognised the
individuals facing prison life restrictions, subpar food,
need for personal hygiene and supplied 43,000 bars of
overcrowding and limited hygiene resources due to
soap to the incarcerated individuals.
budget constraints.
Our aim is to uplift the inmates’ quality of life, offering
them a moment of relief and enhancing their overall
well-being, especially during this significant national
occasion.
Donation of special meal and personal care

items to 11,550 inmates across Sungai Buloh,
Taiping and Tapah prison
RM150,000
Presenting symbolic soaps to representative of Sungai Buloh Prison
Supporting Development of National Mitsuki Leong, in particular, has reciprocated this

Sporting Talent support with a remarkable victory at the International
Tennis Federation (ITF) M15 Nakhon Si Thammarat
As part of our ongoing commitment to bolster the
tournament in September 2023, held in Thailand.
development of the nation’s sports talent, KLK has
Notably, he became the first Malaysian player to
allocated RM560,000 in support of national sports
secure an ITF M15 singles title under the current
initiatives in FY2023. Our contributions have benefited
format. The last noteworthy victory for Malaysia in
various athletes and initiatives, including:
tennis dates back to the early 1990s when V. Selvam
• Malaysian Mixed Badminton Doubles Players, clinched a satellite title on grass in Pakistan.
namely Chan Peng Soon & Cheah Yee See and Goh
Soon Huat & Shevon Lai.
• International Tennis Federation (ITF) Player, Mitsuki
Leong.
• International Tennis Federation (ITF) Junior Player,
Shihomi Leong.
Chan Peng Soon & Cheah Yee See Goh Soon Huat & Shevon Lai
Sponsorship of National Sport Talents
RM560,000
Mitsuki Leong Shihomi Leong
OUR OR GANIS ATION
Community Health Outreach Programme

KLK places a strong focus on the health and welfare of
both its workforce and the surrounding communities.
In Liberia, our plantation hosts a clinic that offers
complimentary healthcare services not only to our
employees but also to neighbouring villagers. On
average, the clinic tends to approximately 7,000 patients
annually, with 15% of them hailing from the local
communities.
In addition to providing free medical care, we have
partnered with Liberia’s Health Ministry to conduct
vaccination outreach programs for rural communities, Vaccination outreach programme
aiming to combat preventable diseases. During
FY2023, we facilitated vaccinations for illnesses such as
Measles, Yellow Fever, Typhoid and Neglected
Tropical Diseases, benefiting approximately 11,550
individuals.
Facilitated vaccination to 11,550
recipients in Liberia
Breast Health Awareness Programme It is our hope that these students will, in turn, share
their newfound knowledge with their families and
Breast cancer stands as the most prevalent cancer
friends, thus contributing to a broader awareness of the
affecting women, and regrettably, it continues to be a
importance of breast health.
leading cause of cancer-related fatalities. In an ongoing
effort to promote awareness and proactive care for
breast health, our operating centres in Sabah have
been actively creating breast health awareness amongst
the Sabah communities.
Recently, we organised the ‘Breast Health Awareness’
programme for students at four schools in Tawau and
Sandakan. Over 1,040 students participated in this
initiative, gaining valuable knowledge on topics such as
breast self-examination and other critical information.
Conducted Breast Health Awareness Programme
for 1,040 students in Sandakan, Sabah

Students participating in the Breast Health Awareness Programme
Biodiversity – The Lifeblood of Our Planet

Biodiversity protection is at the heart of our operations. We understand the vital role that ecosystems play in our world, from
purifying the air we breathe to providing a habitat for countless species. To safeguard biodiversity, we adopt sustainable land
management practices, ensuring that we coexist harmoniously with nature. We actively conserve and restore critical habitats
and work to enhance biodiversity within and around our plantations.
Progress of KONTANDES Programme

Konservasi Hutan Desa (“KONTANDES”) is a collaborative effort involving KLK, Aksenta, Belantara and Lembaga
Pengelola Hutan Desa (“LPHD”). In the latter part of 2022, the project witnessed a shift in management areas with the
exclusion of the Biatan Ilir Village Forest. Simultaneously, Tanah Adat Patiraja and River Riparian in Dumaring Village
were incorporated, resulting in a current project area of 6,428 hectares.
Despite these changes, the project remains steadfast in pursuing its core objectives, and the following outlines its
accomplishments during this period:
SOCIO-ECONOMIC EFFECTS
• A total of five small medium enterprises-Kelompok Usaha Perhutanan Sosial (“KUPS”) have been set up,
i.e. KUPS Wisata (Tourism), KUPS Madu (Honey), KUPS Aren (Brown Sugar), KUPS Industri Kreatif (Creative
Industry), and KUPS Pembibitan (Seedling). From October 2022 to June 2023, the total income generated from
these KUPS is Rp432 million, with the biggest contribution coming from KUPS Wisata.
• Currently the project is in the preparatory stages of adding on another KUPS i.e. KUPS Walet.
• During this period, significant changes have occurred in this initiative. KUPS Industri Kreatif now goes beyond
cloth prints, producing ready-made clothing. Similarly, KUPS Pembibitan has transitioned to a Commanditaire
Vennootschap, a Dutch limited liability partnership setup.
• The programme has also begun conducting capacity-building among the younger generations through educational
initiatives set up at various schools. Among the activities conducted are Sekolah Lapang Dumaring (Dumaring
Field School), Pendidikan Lingkungan Hidup (Education on the Environment), Introduction to KUPS, as well as an
environment video and poster competition. Through these activities, the project aims to build awareness of the
importance of protecting the environment and ensuring natural resources are utilised in a sustainable manner.
Total membership across the group
Rp 5.3 mil Rp 17.13 mil

Rp 23.5 mil
Rp 17.55 mil
Total
Rp 432.22 mil
Rumah Walet (Swallow’s nest warehouse)
Rp 368.8 mil
Wisata
Aren
Madu
Kreatif
Ready-made clothing of KUPS
Pembibitan
Industri Kreatif Introducing KUPS Madu to students
OUR OR GANIS ATION
ENVIRONMENTAL IMPACTS
• Thanks to the efforts of this project, the vegetation
cover in Hutan Desa Dumaring remains undisturbed.
A survey conducted in 2022 revealed no notable
changes in the Primary and Secondary forest areas.
• The area continues to boast rich biodiversity. As
of June 2023, a total of 280 flora and 462 fauna
species have been documented. Among them,
56 newly identified flora species, wild orchids
and herbal plants dominate, while the 13 newly
discovered fauna species primarily consist of Anggrek Batu Babi (Dendrobium babiense)
mammals and birds.
• A total of 26 flora and 80 fauna species in the
region fall under the endangered and threatened
categories, as per the International Union for the
Conservation of Nature (“IUCN”) Red List.
Temu Kunci Kalimantan (Boesenbergia pulchella)
Anggrek Vanda (Cleisostama subulatum) Anggrek Kelabang (Appendicula undulata)
Dumaring Village Forest

3,611.3
3,611.3
3,611.3
1,488.7
1,488.7
1,488.7
35.7
35.7
35.7
5.3
5.3
8.0
2020
2021
2022
Primary forest Secondary forest Bush and Shrub Open Area

WHAT LIES AHEAD FOR KONTANDES Patiraja Customary Land & River Riparian
According to the 2022 vegetation cover survey, the
Patiraja Customary Land and the River Riparian areas 245.7 Patiraja Customary
in Dumaring village are predominantly characterised Land
by secondary forest (850 hectares) and Bushes and Riparian
Shrubs (290 hectares). Moving ahead, the project will
concentrate on development initiatives in these areas,
with a specific focus on: 604.7
222.5
1. Biodiversity baseline study
137.8
2. Capacity building of communities in Patiraja 67.9
7.8
Customary Land and River Riparian, elevating their
Secondary Bush and Open Area Water
knowledge on sustainable forest practices and the
forest Shrub Area
management of riparian areas.
KLKCare Bumi Kita – Biodiversity ConSerVation Programme

KLK places a strong emphasis on safeguarding the environment alongside our business objectives. Our dedication to
sustainable development has led us to initiate an environmental conservation programme known as ‘KLKCare Bumi Kita.’
This programme is designed to rejuvenate and enhance forest ecosystems while also safeguarding wildlife habitats.
KLKCare x RIMAU – Tiger Conservation

We continue our support for Persatuan Pelindung Harimau Malaysia (“RIMAU”) in their mission to preserve the Malayan tiger
and its natural habitat through a community-based approach.
In FY2023, we extended a RM500,000 donation for a two-year partnership, facilitating the training, equipment, and
deployment of the Amanjaya Patroller (“AP”) teams established by RIMAU. These teams are instrumental in conducting
vital patrols within the Amanjaya Forest Reserve to combat poaching activities. The term ‘Ap,’ meaning ‘tiger’ in the
Jahai language, symbolises the core of this initiative, which is to empower local communities to take a central role in protecting
their natural surroundings.
AP Amanjaya patrollers taking photo of tiger pugmarks in the forest
Malayan tiger
Supporting Persatuan Pelindung Harimau Malaysia for
2023-2024 RM500,000
AP Amanjaya patrollers deploying a camera trap for wildlife
monitoring
(photo courtesy of RIMAU)

OUR OR GANIS ATION
KLKCare x BORA – Wildlife Habitat

Restoration
The dwindling population of Bornean Bantengs in
Sabah can be attributed to a range of factors, including
hunting, indirect snaring, habitat loss, fragmentation
and interbreeding with domestic cattle. As a responsible
corporate entity, KLK has recognised the pressing need
to safeguard this rare and majestic species. In
collaboration with Bringing Back Our Rare Animals
(“BORA”), we continue to support the Wildlife Habitat Planting of Napier grass and Ficus trees
Restoration programme.
Within our Lahad Datu region estates, we have planted
Ficus trees intended to serve as both mother plants and
root stock for BORA, ensuring a sustainable supply of
seedlings in the future. In addition to providing nursery
facilities, we have partnered with BORA on a jungle
rehabilitation project at the 33-hectare Malambabula
Wildlife Habitat Improvement Area, a secondary forest
located between KLK Ladang Rimmer and Ladang
Tungku. Together, we introduced 1,617 Ficus trees and
23,523 units of Napier grass to enhance the food supply Seedlings in the nursery
for elephants, Bantengs and other wildlife.
KLKCare x WWF-Malaysia - Wildlife Corridor Restoration in Tabin

Landscapes
The Tabin Wildlife Reserve, a 123,779-hectare natural sanctuary amidst oil palm plantations,
boasts the largest population of Bornean orangutans (around 1,200 individuals) and is
home to endemic species like Bornean elephants, Banteng and Sunda clouded leopards.
In a concerted drive to boost biodiversity conservation and facilitate ecological
connectivity within the Tabin Landscape, we have designated 7.1 hectares of land within
KLK Ladang Bukit Tabin, Sabah, to establish a vital wildlife corridor linking Tabin Wildlife
Reserve and the isolated Silabukan Kecil Forest Reserve. Collaborating with WWF-Malaysia,
we are planting fast-growing tree species to create pathways for wildlife movement, with
co-funding from Beiersdorf AG, a German multinational personal-care product manufacturer.
The project was officially launched in September 2023 with a tree planting ceremony
at Ladang Bukit Tabin, following a Memorandum of Agreement signed in June 2023.
To commemorate the project’s commencement, we planted 300 trees, signifying the start
of a five-year effort to establish the physical wildlife corridor. The initial phase prioritises
fast-growing native pioneer species and fig plants to enhance wildlife food sources.
Through these collaborative endeavours, our aim is to create a sustainable ecosystem that
can support wildlife for generations to come.
Senior Management of
KLK Sabah taking part in
Group photo of KLK and WWF-Malaysia participants of the tree planting ceremony the tree planting activity
KLK x Earthworm Foundation mitigating

Human Elephant Conflict
Since 2017, the Earthworm Foundation has collaborated
with the Sabah Wildlife Department, smallholders, and
plantation companies to facilitate conflict management
and harmonious coexistence with elephants for
smallholders in Ulu Muanad. KLK Sawit Nusantara
has been a steadfast supporter of Human-Elephants
Coexistence (“HEC”). In 2023, we extended our backing
to empower and enhance the capabilities of the Ulu
Night patrolling
Muanad HEC Monitoring Team, aimed at mitigating
human-elephant conflicts.
The Ulu Muanad HEC Volunteer Group, known as the
‘7 Team,’ consists of dedicated smallholder farmers
who voluntarily participate. The Earthworm Foundation
initiated this group to empower smallholders in
implementing HEC mitigation strategies, including
patrolling, monitoring and serving as ambassadors in
raising awareness about elephant protection.
Member of the ‘7 Team’ explaining the device used during

monitoring to the students of Humana Learning Centre
The ‘7 Team’ visiting the plot with elephant appearance World Elephant Day celebration at Desa Talisai South Estate, Sabah
OUR OR GANIS ATION
TREE PLANTING Project

As part of the KLKCare Bumi Kita programme, our plantation teams in Malaysia and Indonesia have actively
participated in tree planting. To date, we have successfully planted approximately 459,000 trees within our plantations
in both countries.
KLK’s efforts to create a harmonious future with nature go beyond our plantation teams; we have involved the
local community, particularly children, in these tree planting initiatives. By engaging the community, our aim is to
promote awareness of environmental conservation and inspire future generations to take action.
Tree Planting Project embodies KLK’s commitment to sustainability and environmental stewardship, with the hope
of leaving a positive impact on the environment and forging a greener, healthier future for all.
Penisular Malaysia
75,213
Sabah
281,100
Indonesia
102,773
Total trees planted
as at September 2023
459,086
Tree planting activities at KLK’s operating centres in Malaysia and Indonesia
LIST OF ASSOCIATIONS
The following section provides an overview of the array of associations that KLK is privileged to be associated with.
Associations Associations
1 Business for Social Responsibility (BSR) 14 Malaysian International Chamber of Commerce & Industry
2 Dewan Minyak Sawit Indonesia (DMSI) 15 Malaysian Oil Scientists’ and Technologist’s Association
(MOSTA)
3 Federation of Malaysian Manufacturers (FMM)
16 Malaysian Oleochemical Manufacturers Group (MOMG)
4 Gabungan Industri Minyak Nabati Indonesia (GIMNI)
17 Malaysian Palm Oil Association (MPOA)
5 Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI)
18 Malaysian Palm Oil Board (MPOB)
6 International Real Estate Federation (FIABCI)
19 Malaysian Rubber Exchange
7 International Sustainability and Carbon Certification (ISCC)
20 National Union of Plantation Workers (NUPW)
8 Malayan Agricultural Producers Association (MAPA)
21 Palm Oil Refiners Association of Malaysia (PORAM)
9 Malaysia Employers Federation (MEF)
22 Persatuan Polis Bantuan Malaysia
10 Malaysian Biodiesel Assocation
23 Real Estate and Housing Developer Association Malaysia
11 Malaysian Dutch Business Council (REHDA)
12 Malaysian Estate Owners’ Association (MEOA) 24 Roundtable on Sustainable Palm Oil (RSPO)
13 Malaysian Industry-Government Group for High
Technology (MIGHT)
GROUP CORPORATE STRUCTURE

FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
PLANTATION
100% Ang Agro Forest Management Ltd 95% KLK Sawit Nusantara Berhad (Cont’d)
100% Betatechnic Sdn Bhd 95% Minat Teguh Sdn Bhd
63% Bornion Estate Sdn Bhd 96% PT Primabahagia Permai
82% Collingwood Plantations Pte Ltd 96% PT Indonesia Plantation Synergy
100% Golden Complex Sdn Bhd 95% Rakanan Jaya Sdn Bhd
92% PT Malindomas Perkebunan 95% Ratus Sempurna Sdn Bhd
100% KL-Kepong Plantation Holdings Sdn Bhd 95% Sabang Mills Sdn Bhd
100% Gunong Pertanian Sdn Bhd [In Member’s Voluntary Liquidation] 1
100% Jasachem Sdn Bhd 95% Sijas Plantations Sdn Bhd
[In Member’s Voluntary Liquidation] 1
100% PT Karya Makmur Abadi
100% PT KLK Agriservindo
95% PT ADEI Plantation & Industry
60% PT Pinang Witmas Sejati
100% PT Applied Agricultural Resources Indonesia
100% PT Putra Bongan Jaya
95% PT Bumi Makmur Sejahtera Jaya
99% Sabah Cocoa Sdn Bhd
92% PT Hutan Hijau Mas
70% Sabah Holdings Corporation Sdn Bhd
95% PT Jabontara Eka Karsa
100% Taiko Plantations Sendirian Berhad
60% PT Langkat Nusantara Kepong
51% Uni-Agro Multi Plantations Sdn Bhd
100% PT Menteng Jaya Sawit Perdana
100% PT Mulia Agro Permai
65% PT Sekarbumi Alamlestari
62% PT Alam Karya Sejahtera AKS
95% PT Steelindo Wahana Perkasa
95% PT Parit Sembada
100% KL-Kepong (Sabah) Sdn Bhd PROPERTY
100% KLK Agro Plantations Pte Ltd DEVELOPMENT
100% Liberian Palm Developments Limited
100% EBF (Mauritius) Limited
100% LIBINC Oil Palm Inc
100% EPO (Mauritius) Limited 100% KL-K Holiday Bungalows Sendirian Berhad
100% Equatorial Palm Oil 100% KLK Land Sdn Bhd
(Liberia) Incorporated
60% Aura Muhibah Sdn Bhd
100% Liberian Agriculture
100% Colville Holdings Sdn Bhd
Developments Corporation
100% KL-Kepong Complex Sdn Bhd
95% KLK Sawit Nusantara Berhad
100% KL-Kepong Country Homes Sdn Bhd
95% Berakan Maju Sdn Bhd
100% KL-Kepong Property Development Sdn Bhd
95% Desa Talisai Palm Oil Mill Sdn Bhd
[In Member’s Voluntary Liquidation] 1 100% KL-Kepong Property Management Sdn Bhd
95% Desa Talisai Sdn Bhd 100% KLK Coalfields Sdn Bhd
[In Member’s Voluntary Liquidation] 1 100% KLK Landscape Services Sdn Bhd
95% Dynasive Enterprise Sdn Bhd 100% KLK Management Services Sdn Bhd
96% PT Prima Alumga 100% KLK Park Homes Sdn Bhd
95% Excellent Challenger (M) Sdn Bhd 100% KLK Retail Centre Sdn Bhd
95% Gunaria Sdn Bhd 80% Kompleks Tanjong Malim Sdn Bhd
95% PT Karya Bakti Sejahtera Agrotama 100% Menara KLK Sdn Bhd
96% PT Sinergi Agro Industri 100% Palermo Corporation Sdn Bhd
95% KLK Agri Oils Sdn Bhd 60% Scope Energy Sdn Bhd
95% KLK Biofuel Sdn Bhd 100% Selasih Ikhtisas Sdn Bhd
OUR OR GANIS ATION
GROUP CORPORATE STRUCTURE

INVESTMENT HOLDING
MANUFACTURING & OTHERS
51% Astra-KLK Pte Ltd 100% Draw Fields Sdn Bhd

100% Davos Life Science Pte Ltd 100% KL-Kepong Equity Holdings Sdn Bhd
100% Biogene Life Science Pte Ltd 100% Ablington Holdings Sdn Bhd
100% Centros Life Science Pte Ltd 100% Ladang Perbadanan-Fima Berhad
100% Davos Life Science Sdn Bhd 100% KL-Kepong International Ltd
100% Fajar Palmkel Sdn Berhad 100% Quarry Lane Sdn Bhd
100% KL-Kepong Edible Oils Sdn Bhd 100% KLK Assurance (Labuan) Limited
100% KL-Kepong Industrial Holdings Sdn Bhd 100% KLK Farms Pty Ltd
80% Capital Glogalaxy Sdn Bhd 100% KLK Overseas Investments Limited
100% KL-Kepong Rubber Products Sdn Bhd 100% KLKI Holdings Limited
100% KLK Hardwood Flooring Sdn Bhd 100% Somerset Cuisine Limited
100% B.K.B. Flooring Sdn Bhd 100% Ortona Enterprise Sdn Bhd
[In Strike Off Process] 2
100% KLK Indahmas Sdn Bhd
80% Palm-Oleo Sdn Bhd
80% KSP Manufacturing Sdn Bhd
80% Palmamide Sdn Bhd
80% Palm-Oleo (Klang) Sdn Bhd
100% PT KLK Dumai
100% PT Prima Dumai Indobulking
96% KL-Kepong Oleomas Sdn Bhd
ASSOCIATES
96% KLK Bioenergy Sdn Bhd
100% KLK Emmerich GmbH
50% Applied Agricultural Resources Sdn Bhd
100% KLK OLEO Americas Inc
30% FKW Global Commodities (Pvt) Limited
90% Temix Oleo SpA
100% KLK Golden Oils Sdn Bhd 50% Kumpulan Sierramas (M) Sdn Bhd
(formerly known as KLK Global Resourcing Sdn Bhd) 38% Malaysia Pakistan Venture Sdn Bhd
100% KLK Plantations and Trading Pte Ltd 30% MAPAK Edible Oils (Private) Limited
(formerly known as Taiko Plantations Pte Ltd) 25% Phytopharma Co Ltd
100% PT Perindustrian Sawit Synergi 27% Synthomer plc
80% KLK Premier Capital Limited
80% Taiko Palm-Oleo (Zhangjiagang) Co Ltd
100% KLK Premier Oils Sdn Bhd
100% Golden Yield Sdn Bhd
100% KLK Tensachem SA
100% Kolb Distribution AG
100% Dr. W. Kolb AG
100% Dr. W. Kolb Deutschland GmbH JOINT VENTURES
100% Dr. W. Kolb Netherlands BV
100% KLK Chemicals Holding Netherlands BV
100% KLK Kolb Specialties BV 50% PT Kreasijaya Adhikarya
100% Kolb Distribution BV 50% Rainbow State Limited
100% Kolb France SARL
100% Shanghai Jinshan Jingwei Chemical Co Ltd
100% KLK Oleo (Shanghai) Co Ltd
51% Stolthaven (Westport) Sdn Bhd
Notes:
Shareholdings are shown as Group’s percentage interest.
1
Commenced liquidation on 8 February 2022.
2
Commenced strike off on 30 August 2023.
GOVERNANCE
107 Corporate Governance Overview 126 Audit and Risk Committee Report
Statement
128 Additional Compliance Information
121 Statement on Risk Management &
Internal Control
GOVER NANCE
CORPORATE GOVERNANCE OVERVIEW STATEMENT
The Board of Directors (“Board”) of KLK is pleased to Roles and responsibilities of the Board
present the Corporate Governance Overview Statement
for the financial year ended 30 September 2023 (“CG The principal functions and responsibilities of the
Overview Statement”). The CG Overview Statement Board (set out in the Board Charter) include, but are
explains how the Board recognises corporate governance not limited to the following:
as being essential for the long term sustainability of the
(a) Providing leadership to the Company by:
Group’s businesses and performance. To this end, the
Board devotes considerable effort to identify and formalise • uiding the development of appropriate
g
best practices to maintain high standards of corporate standards and values for the Company;
governance throughout the Group. Such commitment • acting in a manner consistent with the
is based on the belief that sound and effective corporate Directors’ Code of Conduct; and
governance practices are fundamental to the smooth, • promoting a good corporate governance
effective and transparent operation of a company and its culture which reinforces ethical, prudent and
ability to enhance long term shareholders’ value, increase professional behavior within the Company.
investors’ confidence and protect stakeholders’ interests.
(b) Overseeing the development and implementation
The CG Overview Statement explains how KLK Group of corporate strategies by:
has applied the three (3) principles set out in the Malaysian
Code on Corporate Governance 2021 (“the Code”): • orking with the Senior Management to
w
ensure that an appropriate strategic direction
(a) Board leadership and effectiveness; and set of goals are in place;
(b) Effective audit and risk management; and • regularly reviewing and amending or
(c) Integrity in corporate reporting and meaningful updating the Company’s strategic direction
relationship with stakeholders. and goals to ensure that the strategic plans
support long-term value creation and include
It should be read together with the Corporate Governance strategies on economic, environmental,
Report (“CG Report”) which elaborates further on the social and governance considerations
detailed application for each practice as set out in the underpinning sustainability;
Code. The CG Report is available on the Company’s • overseeing planning activities including the
website, www.klk.com.my. development and approval of strategic plans,
annual corporate budgets and long-term
PRINCIPLE A budgets including operating budgets, capital
BOARD LEADERSHIP AND EFFECTIVENESS expenditure budgets and cash flow budgets;
I. BOARD RESPONSIBILITIES and
• reviewing the progress and performance of
Board Leadership the Company in meeting these plans and
corporate objectives, including reporting the
KLK continues to be led by an experienced, competent
outcome of such reviews.
and diverse Board that is made up of Directors with
appropriate competencies, knowledge, skills and (c)
Ensuring corporate accountability to the
experience from diverse sectors and backgrounds shareholders primarily through adopting an
and also in the Group’s core businesses. The Directors effective shareholder communications strategy,
collectively, have wide and varied technical, financial encouraging effective participation at general
and commercial experience which facilitate effective, meetings and, through its Chairman, being the
thorough and considered discharge of the Board’s key interface between the Company and its
statutory and fiduciary duties and responsibilities. shareholders.
There is a clear division of functions between the (d)
Overseeing the control and accountability
Board and the Management to ensure that no single systems that seek to ensure the Company is
individual or group dominates the decision-making progressing towards the goals set by the Board
process. The Board is focused on the Group’s overall which are in line with the Company’s purpose,
governance by ensuring the implementation of the agreed corporate strategy, legislative
strategic plans and that accountability to the Group requirements and community expectations.
and stakeholders is monitored effectively; whereas the
Management is responsible for the implementation of (e) Ensuring effective risk management, compliance
management goals in accordance with the direction of and control systems (including legal compliance)
and delegation by the Board. are in place.
(f) Delegating appropriate powers to the Group (i) Ensuring the integrity of the financial and
Chief Executive Officer (“CEO”), Chief Operating non-financial reporting of the Company and its
Officer (“COO”), Management and Board subsidiaries.
Committees to ensure the effective day-to-day
management of the business, and monitoring the (j) Exercising its powers for a proper purpose and in
exercise of these powers. good faith in the best interest of the Group and
exercising reasonable care, skill and diligence at
(g) Ensuring Senior Management has the necessary all times in the discharge of its duties.
skills and experience, and that measures are
in place to provide for orderly succession of (k) Reviewing potential candidates for the Board
members of the Board and Senior Management. and Senior Management positions across the
Group through the Nomination Committee (“NC”)
(h) Ensuring all its Directors are able to understand to ensure efficient succession planning and
financial statements and can form a view on the continuity of the vision and mission of the Group.
information presented therein.
(l) Embedding sustainability and corporate
responsibility practices as part of Group strategy.
Board Committees, namely the Audit and Risk Committee (“ARC”), NC and Remuneration Committee (“RC”), have
been constituted to assist the Board in the discharge of specific duties and responsibilities. Each Board Committee
operates within its respective defined Terms of Reference (“TOR”) which have been approved by the Board.
The Group’s governance model is set out below:
SHAREHOLDERS REGULATORS
Company BOARD OF BOARD COMMITTEES

Secretary DIRECTORS
Remuneration Audit and Risk Nomination
Chief Executive
Officer
External Internal Group Risk Sustainability Anti-Bribery

Auditors Auditors Management Steering and
Committee Committee Anti-Corruption
Committee
Corporate Executive Treasury

Responsibility Committee Committee
Steering
Committee
Property Refineries Plantation Oleochemical

GOVER NANCE
The Board meets at least four (4) times a year on a scheduled basis, with additional meetings convened as and
when necessary. During the financial year ended 30 September 2023, a total of eight (8) Board meetings were held.
The following are the details of attendance of each Director:
Number of Meetings Attendance
Directors Held1 Attended Percentage
R. M. Alias 8 8 100%
Tan Sri Dato’ Seri Lee Oi Hian 8 8 100%
Dato’ Lee Hau Hian 8 7 87.5%
Dato’ Yeoh Eng Khoon 8 8 100%
The late Tan Sri Azlan Bin Mohd Zainol 2
1 1 100%
Quah Poh Keat 8 8 100%
Anne Rodrigues 8 8 100%
Lee Jia Zhang 8 7 87.5%
Cheryl Khor Hui Peng 8 8 100%
Tan Sri Shahril Ridza Bin Ridzuan 3
6 6 100%
Notes:
1
Reflects the number of meetings held during the time the Director held office
2
Passed away on 12 January 2023
3
Appointed w.e.f. 2 May 2023
The Board is satisfied with the level of commitment (d) Encouraging active participation and allowing
given by the Directors in carrying out their dissenting views to be freely expressed to
responsibilities which is evidenced by the attendance ensure that the key issues facing the Group are
record of the Directors above. The Board is also mindful addressed;
of the importance of devoting sufficient time and
effort to carry out their responsibilities and enhance (e) Promoting consultative and respectful relations
their professional skills. In this respect, none of the between Board members and between the
Directors hold more than five (5) directorships each in Board and Management;
other listed corporations.
(f) Chairing shareholders’ meetings and ensuring
The Board Chairman appropriate steps are taken to provide effective
communication with stakeholders to ensure
The Chairman of the Company, who was appointed their views are communicated to the Board as a
by the Board, is responsible for instilling the Group’s whole; and
good corporate governance practices and leading the
Board in discharging its duties effectively. (g) Leading the Board in the adoption and
implementation of good corporate governance
Roles and responsibilities of the Chairman practices in the Company.
The roles and responsibilities of the Chairman include: Separation of positions of the Chairman and the
Group CEO
(a) Providing effective leadership to the Board, i.e.
to ensure that the Board fulfils its obligations The respective roles of the Chairman and the
under the Board Charter; Group CEO are clearly defined, so as to promote
accountability and facilitate division of responsibilities
(b) Setting the agenda for Board meetings together between them as a check and balance mechanism.
with the Group CEO and ensuring the provision The Board believes that the separation of the roles
of complete and accurate information to all and responsibilities of the Chairman and the Group
Directors in a timely manner; CEO ensures an appropriate balance of power and
authority.
(c) Leading Board meetings and discussions, and
ensuring the effective and efficient conduct of the
Board meetings;
The Chairman is responsible for leading the Board allows board papers and other information to be
in discharging its duties effectively, and enhancing securely and remotely accessible by the Directors
the Group’s standards of corporate governance. through dedicated applications in a timely manner.
He promotes an open environment for debate, and
ensures that all Directors are able to speak freely and Monthly reports on the financial performance of the
contribute effectively at Board meetings. The Chairman Company and the Group are also circulated to the
also provides clear leadership to the Board with Directors for their views and comments. All proceedings
respect to the Group’s long-term growth and strategy. of Board meetings (which include all material
deliberations and recommendations) are minuted and
The Group CEO focuses on the business, organisational filed in the statutory records of the Company, which
effectiveness and day-to-day management of the is accessible by the Directors at all times. Notices on
Group. He also executes the Board’s decisions and the closed periods for dealings in the shares of the
strategic policies, and chairs the Executive Committee, Company are circulated to all Directors and principal
which comprises Senior Management executives to officers of the Company in order for them to make
oversee the operations of the KLK Group. necessary disclosure to the Company in advance of
whenever the closed period is applicable.
Company Secretary
In recognising the importance of sound and
The Board is supported by an in-house Company timely information flow to the Board effectively,
Secretary, who is suitably qualified, experienced and all announcements made to Bursa Malaysia
competent. To ensure that Directors are well supported will be circulated to all Directors on the day the
by accurate, complete and timely information, announcements are released. Copies of Director’s
all Directors have unrestricted direct access to the notices on changes of Director’s interests and other
services of the Company Secretary to enable them to directorships will also be given to the other Directors
discharge their duties and responsibilities effectively. of the Company within the timeframe prescribed by
the regulations.
The Company Secretary is responsible to provide
clear and professional advice to the Board on all Senior Management is requested to attend Board
governance matters and assist the Board on the meetings to present and provide additional
implementation of an effective corporate governance information on matters being discussed and to
system. In order to ensure uniformity of Board conduct, respond to any queries that the Directors may have.
the Company Secretary also has oversight of the
overall corporate secretarial functions of the Group, In the furtherance of its duties, the Board is also
both locally and in the countries where its subsidiaries authorised to obtain at the Company’s expense,
are operating, and serves as an adviser on matters independent professional advice on specific matters,
pertaining to governance. if necessary, to enable the Board to discharge its
functions in the decision-making process.
Supply of and Access to Information and Advice
Board Charter
All Directors are furnished with an agenda and a set
of Board meeting papers in advance of each meeting. The Board is guided by its Board Charter which
This would give sufficient time to the Directors to clearly sets out the Board’s strategic intent, roles
obtain further explanation or clarification, where and responsibilities in discharging its fiduciary and
necessary, in order to be properly briefed before the leadership functions. The Board Charter serves as a
meeting. The Board papers include, amongst others, source reference and primary induction literature to
the following: provide insights to prospective Board members and
Senior Management. Hence, the Board Charter is
• quarterly financial report and a report on the Group’s reviewed periodically and updated in accordance with
cash and borrowings position; the needs of the Company to ensure its effectiveness
• a current review of the operations of the Group; and consistency with the Board’s objectives and
• minutes of meetings of all Board Committees; corporate vision.
• updates on corporate, secretarial and governance The Board Charter was last reviewed and updated
matters; and in May 2022 to ensure that it continues to remain
• minutes of previous Board meetings. relevant and appropriate for the Board in discharging
its fiduciary duties. The Board Charter is published on
Meeting materials are uploaded electronically into the Company’s website, www.klk.com.my.
a digital medium by the Company Secretary, which
GOVER NANCE
Code of Conduct for Directors In addition to this, employees are also given access
to grievance redressal procedures which provide a
The Board also adheres to the Code of Conduct for formal and transparent platform for employees to air
Directors which sets out the standard of conduct their grievances, file complaints or report problems
expected of Directors, with the aim to cultivate good in relation to the Company and its operations.
ethical conduct that in turn promotes the values of
transparency, integrity, accountability and social Both the Code of Conduct for Employees and
responsibility. The Code of Conduct for Directors Group Employee Grievance Redressal Policy are
(last reviewed and updated in August 2022) is available on the Company’s website, www.klk.com.my.
accessible for reference on the Company’s website,
Group Anti-Corruption Policy
www.klk.com.my.
KLK Group is committed to upholding high ethical
Directors’ Fit and Proper Policy
standards in all aspects of its operations. As part of
The Group adopted a Directors’ Fit and Proper Policy this commitment, the Group maintains a strong stance
to ensure that individuals of high calibre who possess against corruption and actively promotes a culture of
the right blend of qualifications, expertise, track transparency, accountability, and adherence to the
record, competency and integrity are appointed on the laws and regulations governing its activities in the
Boards of Directors of the Group. All candidates to be various countries it operates.
appointed to the Boards of Directors of KLK Group, The Group Anti-Corruption Policy which applies to all
including those seeking re-election/re-appointment, directors, officers, trustees, partners, employees and
shall undergo a review of fit and properness by persons associated with KLK Group is available on
the Board in accordance with the Directors’ Fit and the Company’s website, www.klk.com.my. This policy
Proper Policy. serves as a guiding framework that not only sets the
The Directors’ Fit and Proper Policy is available on the expectations for ethical conduct but also underscores
Company’s website, www.klk.com.my. the Group’s dedication to corporate responsibility
and integrity.
Code of Conduct and Ethics for the Company
Group Whistleblowing Policy
The Board promotes good business conduct and
The Group has a Group Whistleblowing Policy in
healthy corporate governance culture that engenders
place, to enable stakeholders to raise in confidence
integrity, transparency and fairness in line with the
possible corporate misdemeanours without fear of
Company’s Code of Conduct and Ethics. The Code
intimidation or reprisal. The Group Whistleblowing
of Conduct and Ethics sets out the principles and
Policy provides an avenue for stakeholders to
standards of business ethics and conduct of the
raise or report legitimate concerns about any
Group and is to be observed by all employees, officers
actual or suspected unethical conduct, corporate
and Directors of the Group.
misdemeanours of corrupt practices and bribery, as
The Company’s Code of Conduct and Ethics was well as improprieties involving the resources of the
last reviewed and updated in August 2022, and is KLK Group at the earliest opportunity for expeditious
available for reference by all employees, officers and investigation. The Group is committed to absolute
Directors of the Group on the Company’s website, confidentiality and fairness in relation to all matters
www.klk.com.my. raised and will support and protect those who report
violations in good faith.
Code of Conduct for Employees
The details of the Group Whistleblowing Policy are
In line with good corporate governance practices, the available on the Company’s website, www.klk.com.my.
Board, the Management and employees of the Group
are committed to a corporate culture which supports Sustainability of Business
the operation of its businesses in an ethical manner, KLK believes that doing business in a sustainable
and uphold high standards of professionalism and manner goes hand-in-hand with corporate responsibility
exemplary corporate conduct at the workplace. and both are integral to generate and sustain short
The Code of Conduct for Employees sets out the and long term value for its stakeholders. As such, the
standards of behaviour expected of all employees Board is committed to promote business sustainability
when dealing with stakeholders. It gives guidance in strategies via continuous balanced assessment and
development of its operations, whilst simultaneously
areas where employees may need to make personal
conserving and improving the natural environment,
and ethical decisions.
and uplifting the socio-economic conditions of its
employees and local communities.
The Sustainability Policy is available on the Company’s responsibility to source for suitably qualified female
website, www.klk.com.my and the sustainable candidates for the Board, had been searching for
development and corporate responsibility programmes suitably qualified female candidates as the NC remains
of the Group are disclosed on pages 50 to 103. committed to improving boardroom diversity in
terms of race, religion, gender, regional and industry
II. BOARD COMPOSITION experience, cultural and geographical background,
ethnicity, age and perspective.
There were nine (9) members on the Board of
Directors for the financial year ended 30 September There were nine (9) members on the Board of
2023, comprising two (2) Executive and seven (7) Directors for the financial year ended 30 September
Non-Executive Directors, four (4) of whom are 2023, two (2) of whom are female Directors, making
Independent. One (1) of the Executive Directors is the a total of 22% female participation on the Board.
Group CEO and the Chairman is a Non-Independent Notwithstanding the Board complies with the Main
Non-Executive Director. LR to have at least one (1) female Director, it remains
committed to a minimum 30% female representation
The Board, through its NC, reviews annually the size
on the Board. Hence, the Board will consider the
and composition of the Board and each Board
appointment of an additional female Director as and
Committee, and the skills and core competencies of
when vacancies arise and circumstances permit.
its members, to ensure an appropriate balance and
The Board will also take steps to nurture suitable and
diversity of skills and experience. The Board and its
potential candidates equipped with the competency,
NC have upon their annual assessment, concluded
skills, experience, character, time commitment,
that the current Board comprises of a balanced mix
integrity and other qualities in meeting the future needs
of skills, knowledge and experience in the business
of the Company.
and management fields which are relevant to enable
the Board to carry out its responsibilities in an Re-election of Directors
effective and efficient manner.
In accordance with the Company’s Constitution, all
The composition of the Board for the financial year Directors who are appointed by the Board are subject
under review and at present, meets the requirements to re-election by shareholders at the next Annual
of Main LR of at least one-third (1/3) of the Board General Meeting immediately after their appointment.
being independent. In accordance with the Constitution, one-third (1/3)
of the Directors is required to submit themselves
Independent Directors
for re-election by rotation at each Annual General
The Board recognises the importance of Meeting. All the Directors are subject to retirement
independence and objectivity in the decision-making at an interval of at least once in every three (3) years.
process. The Board comprises four (4) Independent The Directors who are standing for re-election at
Directors, one (1) of whom the Board had designated the forthcoming Annual General Meeting are disclosed
as the Senior Independent Director, for the financial in the notice of Annual General Meeting.
year under review.
Board Appointment
The MCCG recommends that the tenure of an
The NC maintains a formal and transparent
Independent Director should not exceed a cumulative
procedure for the selection and recruitment of new
term of nine (9) years and if the Board continues
Directors. Apart from reviewing the size, composition
to retain the Independent Director after the
and diversity of the Board annually, the NC also
ninth (9th) year, a two-tier voting process should be
assesses the suitability of identified candidates
applied. For the financial year ended 30 September
for membership of the Board and its Committees.
2023, none of the Independent Directors of the
The criteria for selection thereto is guided by the
Company has served for a cumulative term of more
Directors’ Fit and Proper Policy.
than nine (9) years.
The Board continues to use independent sources or
Board Diversity
search firms to identify suitably qualified candidates,
The Board acknowledges the importance of should the need arise, instead of relying solely on the
boardroom diversity and the establishment of a recommendation of existing Board, Group CEO or
gender diversity policy. Hence, the Select Committee major shareholders.
on Board Gender Diversity, which is delegated the
GOVER NANCE
Nomination Committee A summary of activities undertaken by the NC in the

discharge of its duties for the financial year ended
The NC has been established since 2001. The NC’s
30 September 2023 is set out herebelow:
responsibility, among others, is to identify and
recommend the right candidate with the necessary (1) Reviewed and assessed the performance of
skills, experience and competencies to be filled in the Directors seeking re-election at the upcoming
Board and Board Committees. Recruitment matters Annual General Meeting (“AGM”) in accordance
are discussed in depth by the NC before the entire with the Directors’ Fit and Proper Policy, and
Board makes the final decision on new appointments. provided recommendations to the Board for
The NC has its own written TOR which deals with their approval of the proposed Directors’
its authority and duties. The NC’s TOR was last re-election at the AGM;
updated in May 2022 and is available on the Company’s
website, www.klk.com.my. (2) Reviewed and recommended the structure, size
and composition of the Board based on the
In view of the growing recognition that boards or compliances with the provisions of the relevant
committees with a good mix of age, experience guidelines and regulations, as well as the required
and backgrounds tend to foster better debate and mix of skills, experience and other qualities
decision making, and are less subject to “Groupthink”,
considered important by the Board;
the Board had in 2022 refreshed the composition
of the NC. The current composition of the NC (3) Reviewed the structure, size and composition
comprises three (3) Non-Executive Directors, the of the Board Committees based on their
majority of whom are Independent as follows: compliances with the provisions of the relevant
guidelines and regulations, as well as the
Dato’ Lee Hau Hian (Chairman)
suitability of Board members based on their
- Non-Independent Non-Executive Director
expertise, experience and commitment;
Mrs. Anne Rodrigues
(4) Evaluated the size of the Board to ensure that
- Independent Non-Executive Director
the Board had the requisite competencies
Tan Sri Shahril Ridza bin Ridzuan and capacity to effectively handle all matters
- Independent Non-Executive Director pertaining to the Group;
The NC convened two (2) meetings for the financial (5) Conducted the annual assessment on
year under review and the attendance of the members effectiveness of the Board, the Board Committees
for the meetings held are as follows: and the individual Directors of the Company;
Number of Meetings (6) Reviewed the findings and results of the external
Members Held 1
Attended annual Board effectiveness evaluation and
identified areas for improvement to maximise
Dato’ Lee Hau Hian 2 2 board effectiveness;
Mrs. Anne Rodrigues 2
1 1
(7) Reviewed the tenure of service of Independent
Tan Sri Shahril Ridza Bin 0 0
Directors;
Rizduan3
Dato’ Yeoh Eng Khoon4 1 1 (8) Reviewed the suitability of the available female
The late Tan Sri Azlan Bin 1 1 candidates for directorship in order to enhance
Mohd Zainol5 board gender diversity, and to meet the
guidance on 30% female representation in a
Notes: board from time to time;
1
Reflects the number of meetings held during the time the
Director held office (9) Reviewed the succession plans of the Board
2
Appointed on 1 December 2022
3
Appointed w.e.f. 2 May 2023
and Senior Management in order to ensure
4
Retired on 1 December 2022 that there are appropriate plans in place to fill
5
Passed away on 12 January 2023 vacancies and to meet the Group’s future needs;
(10) Proposed the appointment of new Director and

Board Committee members;
(11) Reviewed the appointments or nominations of

directors, commissioners, and supervisors, to
the boards of certain subsidiaries in the Group;
(12) Assessed Directors’ training needs to ensure The Board is an engaged and consensual board
all Directors receive appropriate continuous working in harmony and has forged a relationship
development programmes; among members and management built on trust,
openness and respect. There are open discussions
(13) Reviewed and assessed the term of office and and consensus-driven decision-making. There are
performance of the ARC and each of its members; no major concerns relating to the evaluation of
and KLK’s Board overall effectiveness, although some
(14) Assessed and recommended to the Board improvements may be desirable in certain parameters
the renewal of service contracts of key senior to further enhance the Board’s performance.
management.
A summary of the results and all feedback received was
Annual Evaluation for Board, Board Committees tabled to the NC for deliberation before appropriate
and Individual Directors action plans were recommended to the Board for
further discussion and approval.
The Board acknowledges that the conduct of an
annual board evaluation provides an invaluable The findings and results of the assessment were
opportunity to appraise Board efficiency, evaluate its properly documented, summarised and reported to
composition, and pinpoint areas where enhancements the Board. The results of the annual assessment for
can be made to optimize board effectiveness. To the financial year under review revealed that the Board
facilitate this process and in alignment with Practice and Board Committees had carried out their duties
6.1 of the MCCG, which suggests companies engage well and amicably with most of the questions rated
independent experts once every three (3) years for positively. The Board agreed that it had performed well
board evaluations, Institute of Corporate Directors in these challenging times and was satisfied with its
Malaysia (“ICDM”) was appointed as the external overall performance, with some areas identified for
facilitator for the Board & Directors Effectiveness improvements.
Evaluation (“BDEE”) for the financial year ended
The NC concluded that the Board and Board
30 September 2023.
Committees were satisfied with their existing
Under ICDM’s BDEE, the effectiveness of the Board composition, and were of the view that with the current
and each individual Director was assessed through a mix of skills, knowledge, experience and strength of
combination of the following steps: the Directors, the Board, respective Board Committees
and Directors were able to discharge their duties
(1) Documentation review; effectively. Hence, the Board will continue to focus on
the identified areas for improvement.
(2) Online questionnaires;
(3) Confidential one-on-one interviews; Induction or Orientation for new Director
(4) Compliance assessment; and The Board recognises the importance of conducting a
comprehensive induction or orientation programme for
(5) Observations and evaluation.
a new director in order to familiarise the new director
Online questionnaires were also performed with with the businesses and governance practices of the
selected key Senior Management to obtain feedback Group. The programme also allows the new director
from a Management perspective. to get acquainted with Senior Management, thereby
facilitating board interaction and independent access
The results of the BDEE reaffirmed that the Board is led to Senior Management. Upon appointment, the new
by a very experienced and well-respected Chairman Director goes through a comprehensive induction or
and ably supported by three (3) board committees, orientation programme and is briefed on the Group’s
namely Audit and Risk Committee, Remuneration activities, operations and policies during visits to
Committee and Nomination Committee. The Board various KLK Group operating centres to enable
can be viewed as being a formal, professional and him/her to assimilate into the new role. The site visits will
cohesive board which has undertaken its various board include briefings from the Management of operational
duties, roles and responsibilities well. units to provide further depth and appreciation of
the key drivers behind the Group’s core businesses.
Such sessions are reviewed regularly to ensure that
they remain relevant and effective.
GOVER NANCE
Continuous Development Programme for all All Directors have attended the Mandatory
Directors Accreditation Programme (“MAP”) Part I on corporate
governance and director’s roles, duties and liabilities
The Board oversees the training needs of its Directors. as required under the Main LR while some Directors
Directors are regularly updated on the Group’s have also completed the MAP Part II on sustainability
businesses and the competitive and regulatory (a new mandatory onboarding programme by
environment in which they operate. Directors are Bursa Malaysia which Directors are required to
encouraged to visit the Group’s operating centres to complete by 1 August 2025).
have an insight into the Group’s various operations
which would assist the Board to make effective To foster a more immersive learning experience,
decisions relating to the Group. Management arranges on-site visits, offering valuable
opportunities for informal engagement between
The Directors recognise the importance of continuing the Board and Management teams across the
development by attending conferences, briefings Group’s operations. These visits enhance Directors’
and workshops to update their knowledge and contributions to the Group’s operations and they are
enhance their skills. All Directors are encouraged to updated with industry-specific developments.
attend various external professional programmes
relevant and useful in contributing to the effective For the financial year under review, Directors have
discharge of their duties as Directors. In this respect, attended various programmes to keep abreast with
general economic, industry and technical developments
in-house briefings by External Auditors, solicitors
as well as changes in legislation and regulations
and/or Management are organised from time to time
affecting the Group’s operations. Particulars of various
to update Directors on relevant statutory and
training programmes attended by the Directors during
regulatory requirements and the Group’s business and
the financial year ended 30 September 2023 are
operational practices.
as follows:
Conference/Seminar/Workshop Presenter/Organiser
Pillar Two of BEPS 2.0 (Base Erosion and Profit Shifting) – Global Deloitte Tax Malaysia (In-house)
Minimum Tax
CGS – CIMB 15th Annual Malaysia Virtual Corporate Day CGS-CIMB Securities Sdn Bhd
Malaysia-China Business Forum 2023 The Associated Chinese Chambers of
Commerce and Industry of Malaysia
Senior Management Development Programme 2023 Melbourne Business School (In-house)
International Planters Conference 2023 Incorporated Society of Planters
Stanford Economic Forum Stanford University
The Mandatory Accreditation Programme Part II: Leading for Impact Institute of Corporate Directors Malaysia
Virtual Talk on Environmental, Social & Governance (ESG) Frameworks: PricewaterhouseCoopers Malaysia
Understanding the Alphabet Soup (In-house)
KPMG Board Leadership Centre Exclusive – Understanding the KPMG Management & Risk Consulting
Requirements in Bursa Malaysia’s Enhanced Sustainability Reporting Sdn Bhd
Frameworks
Audit Oversight Board - Conversation with Audit Committees Securities Commission Malaysia
What You Need to Know About Cybersecurity Lonpac Insurance Berhad (In-house)
Transfer Pricing Talk: Getting It Wrong Can Be Costly KPMG PLT
EY-Parthenon and C-suite series - Session 8: Defining a Winning EY Corporate Advisors Pte. Ltd
Strategy for Southeast Asia’s Conglomerates
Webinar: Cyber Security: What Directors Need to Know Minority Shareholders Watch Group
Malaysia
Climate Risk Training Session - Workshop 1: Climate Risk 101 and Task Marsh Advisory (Asia)
Force on Climate related Financial Disclosures (TCFD) Overview
Conference/Seminar/Workshop Presenter/Organiser
Understanding the Impact of Digital Transformation in the Financial FIDE FORUM

Industry: What Board Members Need to Know
Conflict of Interest (“COI”) and Governance of COI Bursa Malaysia Berhad
Management and Leadership Development Coaching Program Alvin Ung
Anti-Money Laundering (AML) & Countering the Financing of Terrorism Alliance Bank Malaysia Berhad (In-house)
(CFT)
Risk Management Committee – Banking Sector Asia School of Business
Climate Risk Management & Scenario Analysis Alliance Bank Malaysia Berhad (In-house)
Market Risk Management - Banking Sector Asia School of Business
The Hasanah Forum 2023 & AVPN Global Conference 2023 Yayasan Hasanah in partnership with
AVPN
The KLK Plantation Managers’ Conference 2023 S.P.E.A.A.R.S. (International) Malaysia
(In-house)
III. REMUNERATION The Remuneration Policy was revised and updated

in May 2022 and is accessible on the Company’s
Remuneration Policy and Procedures for Directors website, www.klk.com.my.
and Senior Management
Remuneration Committee
The Board has in place a formal Remuneration Policy
for Directors and Senior Management (“Remuneration The RC has been established since 1994. Its
Policy”). The Remuneration Policy establishes a primary responsibility is to structure and review the
formal and transparent procedure for developing a remuneration policies and procedures for executives
structure for the remuneration of Directors and Senior of the Group, with a view to ensure that compensation
Management of the Company with the objective of and other benefits encourage performance that
supporting and driving business strategy and the enhances the Group’s long-term profitability and value.
long-term interests of the Company. The RC’s recommendations on the remuneration
package for Senior Management and that for the
The aim of the Remuneration Policy is to: Group CEO, are subject to the approval of the Board,
and in the case of Non-Executive Directors’ fees and
(i) determine the level of remuneration of Directors
benefits, the approval of the shareholders. The RC
and Senior Management;
has a TOR which deals with its authority and duties.
(ii) attract, retain and reward high performing, The TOR of the RC was last updated in May 2022
experienced and qualified Directors and Senior and is available on the Company’s website,
Management by providing remuneration www.klk.com.my.
commensurate with their responsibilities and
The RC currently comprises of three (3) Non-Executive
contributions, and be competitive with the
Directors, the majority of whom are Independent as
industry; and
follows:
(iii) encourage value creation for the Company
Tan Sri Shahril Ridza bin Ridzuan (Chairman)
by aligning the interests of Directors with the
- Independent Non-Executive Director
long-term interests of shareholders.
Mr. Quah Poh Keat
The Board, through the RC will conduct a periodic
- Senior Independent Non-Executive Director
review of the criteria to be used in recommending
the remuneration package of Directors and Senior Dato’ Lee Hau Hian
Management to ensure that it is in line with current - Non-Independent Non-Executive Director
market practices and needs.
GOVER NANCE
During the financial year under review, one (1) meeting Directors’ Remuneration
was held and the attendance of the members for the
meeting held is as below: The Company’s framework on Directors’ remuneration
has the underlying objectives of attracting and retaining
Number of Meetings Directors of high calibre needed to run the Group
Members Held1 Attended successfully. In the case of the Executive Directors,
the various components of the remuneration are
Tan Sri Shahril Ridza Bin 0 0 structured so as to link rewards to corporate and
Rizduan2 individual performance. In the case of Non-Executive
Dato’ Lee Hau Hian 1 1 Directors, the level of remuneration reflects the
Mr. Quah Poh Keat 3
0 0 expertise, experience and level of responsibilities
undertaken by a particular Non-Executive Director
R. M. Alias4
1 1 concerned. The Non-Executive Directors are paid
The late Tan Sri Azlan Bin 1 1 a meeting allowance for each Board meeting they
Mohd Zainol5 attend. Similarly, members to Board Committees are
also paid a meeting allowance for each Committee
Notes:
1
Reflects the number of meetings held during the time the
meeting they attend. The Directors are also reimbursed
Director held office reasonable expenses incurred by them in the course
2
Appointed w.e.f. 2 May 2023 of carrying out their duties on behalf of the Company.
3
Appointed on 1 December 2022
4
Retired on 1 December 2022
5
Passed away on 12 January 2023
Details of Directors’ remuneration (including benefits-in-kind) and the aggregate remuneration of Directors at the
Company and Group levels during the financial year are as follows:
Benefits-In- Other
Category (RM’000) Fees# Salaries# Bonus# Kind1# Emoluments2# Total
Executive Directors
1. Tan Sri Dato’ Seri Lee Oi Hian - 6,120 6,120 24 2,127 14,391
2. Lee Jia Zhang - 2,400 2,000 31 804 5,235
Non-Executive Directors
1. R. M. Alias* 544 - - 23 26 593
2. Dato’ Lee Hau Hian 304 - - - 29 333
3. Dato’ Yeoh Eng Khoon 298 - - 7 28 333
4. The late Tan Sri Azlan bin 89 - - - 6 95
Mohd Zainol
5. Quah Poh Keat 318 - - - 34 352
6. Anne Rodrigues 308 - - - 41 349
7. Cheryl Khor Hui Peng 295 - - - 31 326
8. Tan Sri Shahril Ridza Bin 128 - - - 20 148
Ridzuan
Notes:
1
Benefits-In-Kind include company car, petrol, driver, medical, discounts for purchase of Group/Company products, insurance
coverage and business travel.
2
Other emoluments include meeting allowance, travelling allowance, employer’s Employees Provident Fund, SOCSO, Employment
Insurance System contributions and other claimables and reimbursables for the purpose of enabling the Directors to perform
their duties.
* Chairman of the Board
#
Received and receivable from the Company. None of the amount was received on group basis.
The Board has endorsed that the Directors’ fees would be held constant for three (3) years. However, to ensure that
the Directors’ fees align with appropriate peer groups and are measured against profits and other targets set in
accordance with the Company’s annual budget and plans, the RC continues to review Directors’ fees annually.
PRINCIPLE B II. Risk Management Framework

EFFECTIVE AUDIT AND RISK MANAGEMENT
Risk Management and Internal Controls
I. Audit and Risk Committee
The Board acknowledges the importance of a sound
The ARC of the Company is chaired by the Senior risk management system and internal controls and is
Independent Non-Executive Director, Mr. Quah supported by the ARC and Group Risk Management
Poh Keat. It comprises three (3) Independent Committee (headed by the Group CEO) respectively
Non-Executive Directors and one (1) Non-Independent to ensure the risks in the Group are identified and
Non-Executive Director, with diverse backgrounds managed with the appropriate risk management
and extensive experience in risk assessment and system. The risk management process includes
management, banking, finance, taxation, internal identifying principal business risks in critical areas,
audits, corporate governance, etc. assessing the likelihood and impact of material
exposures and determining its corresponding risk
The ARC has a key role in the oversight of the mitigation and treatment measures.
effectiveness of the risk management and internal
control systems of the Company. Its key function is In this respect, the Board is briefed on potential
to assist the Board to assess the risks and control fraud, whistleblowing and internal audit findings in
environment, oversee the financial reporting process, order to enable them to assess the integrity of the
evaluate the internal and external audit process, and Group’s financial information, and the adequacy and
review any conflict of interest situations and related effectiveness of the Group’s system of internal controls
party transactions. The roles and responsibilities of and risk management processes.
the ARC are governed in its TOR which is periodically
Under the risk management framework, the Board,
assessed, reviewed and updated by the ARC or as
through the Group Risk Management Committee, sets
and when there are changes to the regulatory
out the risk appetite of the Group whilst the Group Risk
requirements and direction or strategies of the
Management Committee ensures the effectiveness of
Company that may affect the ARC’s role. Upon review,
risk management and adherence to the risk appetite
the proposed changes will be recommended to the
established by the Board.
Board for approval.
Having reviewed the adequacy and effectiveness of
The term of office and performance of the ARC and
the Group’s risk management and internal control
each of its members are reviewed annually by the
system for the year under review, the Board is of the
Board through the NC, to ensure the ARC and its
view that the risk management and internal control
members have carried out their duties in accordance
system is satisfactory and there were no material
with their TOR. The TOR of the ARC is available on the
losses incurred during the year under review as a result
Company’s website, www.klk.com.my.
of internal control weakness or adverse compliance
The details of how the ARC carried out its roles and events. The details of the Risk Management and
responsibilities during the financial year under review Internal Control Framework are set out in the Statement
are set out in the ARC Report of this Annual Report on Risk Management and Internal Control of this
2023. Annual Report 2023.

Assessment of Suitability, Objectivity and Internal Audit Function
Independence of External Auditors
The Board recognises the importance of risk
In the fourth Quarter of 2023, the ARC assessed management and internal controls in the overall
the suitability and independence of the Company’s management processes. An adequately resourced
External Auditors, Messrs. BDO PLT (“BDO”) Internal Audit Division is in place to assist the Board in
and considered its engagement team, reporting, maintaining a system of internal control to safeguard
deliverables, fees and non-audit services. The ARC shareholders’ investment and the Group’s assets.
also reviewed the information presented in the The Internal Audit Division, which reports directly to
Annual Transparency Report of BDO. the ARC, is responsible to conduct reviews on the
system of internal controls and the effectiveness of
Having regard to the outcome of the annual the processes that are in place to identify, evaluate,
assessment of BDO, the Board approved the ARC’s manage and report risks.
recommendation that shareholders’ approval be
sought at the forthcoming AGM for the re-appointment An overview of the Group’s risk management and
of BDO as External Auditors of the Company for state of internal controls is set out in the Statement
the financial year ending 30 September 2024. on Risk Management and Internal Control and ARC
Report of this Annual Report.
GOVER NANCE
Corporate Ethics and Integrity Investor Relations
Taking cognisance of the introduction of corporate The Board recognises the importance of keeping
liability by the Malaysian Anti-Corruption Commission shareholders, investors, research analysts,
(Amendment) Act 2018, the Group has taken various bankers and the press informed of the Group’s
proactive actions to strengthen the Group’s internal business performance, operations and corporate
processes and practices during the financial year developments. The Board’s primary contact with
under review in order to ensure that it has adequate major shareholders is via the Group CEO, Head of
procedures in place to prevent persons associated Corporate and the Investor Relations Department,
with the Group from undertaking corrupt conduct. who have regular dialogues with institutional investors
and deliver presentations to analysts periodically
The internal working group which comprises
personnel across several departments had been For the financial year ended 30 September 2023,
monitoring the formulated action plans to mitigate Management has attended various meetings including
bribery and corruption risks within the Group. During tele-conferences and video-conferences with both
the year under review, training and communication local and foreign investors and analysts. These
in respect of anti-bribery and anti-corruption had been meetings are scheduled to keep the investment
carried out involving all directors and employees. community abreast of the Group’s strategic
The Group will review the Group’s anti-bribery and developments and financial performance.
corruption programme periodically or at least once every
three (3) years to assess the performance, efficiency The Company’s website, www.klk.com.my serves
and effectiveness of the Group’s anti-bribery and as a channel of communication for shareholders,
corruption processes and risk management system. investors and the general public. Information such
as disclosures made to Bursa Malaysia (including
PRINCIPLE C interim and full year financial results, Annual Report
INTEGRITY IN CORPORATE REPORTING and other announcements on relevant transactions
AND MEANINGFUL RELATIONSHIP WITH undertaken by the Group), Company Profile, Corporate
STAKEHOLDERS Information, Group Policies, Corporate Mission &
Values, the respective TOR of the ARC, NC and RC
I. Communication with Stakeholders
etc., can be obtained from the website. Requests for
KLK upholds a strong culture of continuous, timely information on the Company can be forwarded to its
and equal dissemination of material information with dedicated Investor Relations Department through the
shareholders, stakeholders, media and regulators same website.
through practicable and legitimate channels. Its
Pursuant to the best practices in corporate
commitment, both in principle and practice, is
governance, Mr. Quah Poh Keat was appointed to
to maximise transparency consistent with good
serve as the Senior Independent Non-Executive
corporate governance, except where commercial
Director to whom concerns of investors and
confidentiality dictates otherwise.
shareholders may be directed.
Effective Dissemination of Information
Compliance with Applicable Financial Reporting
Announcements and release of financial results on a Standards
quarterly basis are posted on the Company’s website,
The Board takes due care and responsibility for
which will provide the shareholders and the investing
presenting a fair, balanced and comprehensible
public with an overview of the Group’s performance
assessment of the Group’s operations, performance
and operations.
and prospects each time it releases its quarterly
The Company’s website is freely accessible to the and annual financial statements to shareholders and
public at www.klk.com.my and the Directors welcome the general public. The ARC plays a crucial role in
feedback channelled through the website. reviewing information to be disclosed to ensure its
accuracy, adequacy, transparency and compliance
As there may be instances where investors and with the appropriate accounting standards and the
shareholders may prefer to express their concerns financial statements give a true and fair view of the
to an independent director, the Board has appointed state of affairs of the Company and the Group.
Mr. Quah Poh Keat, as the Senior Independent
Non-Executive Director to whom concerns may be
directed.
In respect of the financial statements for the financial financial results and the Company’s announcements
year ended 30 September 2023, the Directors have: from the Company’s website at www.klk.com.my
which are also posted on the Bursa Malaysia’s
• adopted appropriate accounting policies and
website.
applied them consistently;
• made judgements and estimates that are II. Conduct of General Meetings
reasonable and prudent; and
Shareholders’ Participation at AGMs
• ensured that all applicable accounting standards
have been followed, subject to any explanations The AGM, which is held in February each year, is
disclosed in the notes to the financial statements. the principal forum for dialogue and interaction
with the shareholders of the Company, where they
The Directors are responsible for ensuring that proper may present their views or seek clarification on the
accounting records are kept and which disclose with progress, performance and major developments of
reasonable accuracy the financial position of the the Company. The Board encourages shareholders’
Company and the Group to enable them to ensure that active participation at the Company’s AGM and
the financial statements comply with the Companies endeavours to ensure all Board members, the
Act 2016. They have an overall responsibility for Company’s Senior Management and the Group’s
taking such steps as are reasonably open to them to External Auditors are in attendance to respond to
safeguard the assets of the Company, to prevent and shareholders’ queries. Where it is not possible to
detect fraud and other irregularities. provide immediate answers to shareholders’ queries,
Corporate Disclosure Policy and Procedures the Board will undertake to provide the answers after
the AGM.
The Company and the Group are committed to a
policy which provides accurate, balanced, clear, timely Interaction between Directors and Shareholders
and complete disclosure of corporate information during General Meetings
to enable informed and orderly market decisions by
At General Meetings, the Chairman plays a pivotal
investors. Importance is also placed on timely and
role in fostering constructive dialogue between
equal dissemination of material information to the
shareholders, the Board and Senior Management.
stakeholders, media and regulators. In this respect,
Shareholders are also informed of the rules, including
the Company has in place a Corporate Disclosure
the voting procedures that govern the General Meetings.
Policy, which is accessible on the Company’s website,
www.klk.com.my, to ensure that comprehensive, At the 50th AGM of the Company held on 23 February
accurate and timely disclosures are provided to 2023, all Directors were present in person to engage
shareholders and stakeholders. directly with the shareholders of the Company.
During the AGM, shareholders had actively taken the
The objectives of the Corporate Disclosure Policy and
opportunity to raise questions on the agenda items
Procedures are to:
of the AGM as well as current development of the
(a) confirm in writing KLK’s existing disclosure Group. The Directors and Senior Management
policies, guidelines and procedures and ensure responded to all the questions raised and provided
consistent approach to the Company’s disclosure clarification as required by the shareholders.
practices throughout the Company; To ensure transparency, questions submitted in
advance by the Minority Shareholders Watch
(b) ensure that all persons to whom this Disclosure
Group and Employees Provident Fund Board were
Policy applies understand their obligations to
presented to the shareholders at the general
preserve the confidentiality of material information;
meetings together with the Group’s response.
(c) effectively increase understanding of the
All resolutions set out in the notice of the AGM
Company’s business and enhance its corporate
were voted by poll and an independent scrutineer was
image by encouraging practices that reflect
appointed to validate the votes for each resolution.
openness, accessibility and co-operation; and
The Chairman announced the voting results of all
(d) reinforce KLK’s commitment to compliance the resolutions tabled before the closure of the AGM
with the continuous disclosure obligations and the outcome of the meetings were released
imposed by the Malaysian securities law and to Bursa Malaysia Securities Berhad on the same
regulations and the Main LR. meeting day. The minutes of the AGM including all
the questions raised at the meeting and the answers
Material information will in all cases be disseminated
thereto, were made available on the Company’s
broadly and publicly via Bursa Malaysia, and other
website, www.klk.com.my.
means. Interested parties may also obtain the full
GOVER NANCE
STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
The Board of Directors of KLK is pleased to provide the Statement on Risk Management and Internal Control (“Statement”)
which outlines the nature and scope of risk management of the Group during the year.
INTRODUCTION deliberated by the respective business divisions’ Sector

Risk Management Committees (“SRMC”) prior to
The risk management framework and internal control escalating to the GRMC to ensure they are aligned with
system are designed to identify, evaluate and manage the Group’s strategic objectives and overall risk appetite.
risks that could impede the achievement of the business The GRMC deliberates on the key risks and performs
objectives and strategies. deep-dive reviews on strategic topics before reporting to
the Audit and Risk Committee (“ARC”) and Board of
This Statement does not cover associates and joint
Directors (“Board”) twice a year. Any changes highlighted
ventures where risk management and internal control are
by them would be cascaded to the RO/OC for remedial
managed by the respective management teams.
actions. Notwithstanding the above, any emerging principal
risks that may arise during the year will be escalated
BOARD RESPONSIBILITY immediately to the GRMC for evaluation and review.
The Board affirms its overall responsibility in maintaining The above process is coordinated by the Risk Management
a sound risk management and internal control system at Unit, led by the Enterprise Risk Manager in conjunction
KLK to safeguard the interest of shareholders, customers, with the SRMC, for periodic reporting to the GRMC, the ARC
employees and the Group’s assets. and the Board.
In view of the limitations inherent in any system of risk The Group’s risk management framework is set out in the
management and internal control, the system is designed diagram below:
to manage, rather than to eliminate, the risk of failure to
achieve the policies, goals and objectives of the Group.
Therefore, it can only provide reasonable, rather than Board of Directors
absolute assurance against material misstatement of (“Board”)
management and financial information, financial losses,
fraud and breaches of laws or regulations.
CONTROL ENVIRONMENT AND ACTIVITIES Audit and Risk Committee

(“ARC”)
RISK MANAGEMENT FRAMEWORK
KLK’s risk management process encompasses identifying

the Group’s key risks and providing reasonable assurance
in managing the risks within its risk appetite. The aim is to Group Risk Management Committee
set clear guidelines to the level of risks acceptable to the (“GRMC”)
Group.
The Risk Management Framework adopts a top-down

approach to identify the Group’s key risks and a bottom-up
Sector Risk Management Commitees
approach to identify operational risks.
(“SRMC”)
The Board is supported by the Group Risk Management
Committee (“GRMC”), headed by the Chief Executive
Officer (“CEO”) in overseeing the risk management efforts
within the Group. In line with the Group’s stance to promote
Regional Offices/Operating Centres
a robust risk management process, risks reported by
(“RO/OC”)
the Regional Offices/Operating Centres (“RO/OC”) are
The principal risks for the financial year 2023 reviewed by developed complete with projects and targets,
the Board of Directors are as follows: including 25% intensity reduction in carbon
emissions by 2030, net zero by 2050 (in both
(a) Sustainability Risks instances for Scope 1 and 2 only) and provision
of 50 product carbon footprints by 2025. These
Sustainability is strongly upheld in KLK’s businesses
initiatives are in various stages of implementation
and operations and plays an important role in
with accompanying work cadence.
ensuring long-term business resilience and growth.
The Group’s key stakeholders namely customers, (iii) Supply Chain Risk
regulators, financiers and investors have greater
expectations and demands on sustainability matters. KLK adheres to the production of Certified
The sustainability governance in KLK is led by Sustainable palm products, adopting the
the Board, assisted by the ARC and supported Roundtable on Sustainable Palm Oil (RSPO)
by the Sustainability Steering Committee (“SSC”). Principles & Criteria (P&C) and maintains
The key role of SSC is to formulate ESG strategies, certifications of other standards i.e., International
and monitors compliance with sustainability-related Sustainability & Carbon Certification (ISCC),
policies and achievement of targets. Two Sustainability Malaysian Sustainable Palm Oil (MSPO) and
Working Committees (SWC Upstream and SWC Indonesian Sustainable Palm Oil (ISPO). The
Downstream) are in place to monitor and track the Group’s sustainability practices are guided by
progress of sustainability initiatives executed by a Sustainability Policy, No Deforestation, No
Sustainability Taskforces. Peat and No Exploitation (NDPE) commitment,
Supplier Code of Conduct and Grievance
(i) Human Rights Risk Procedure (which are available on the Company’s
website at www.klk.com.my).
KLK has in place a “no recruitment fee” policy
as part of the Group’s commitment and However, the EU Deforestation Regulation
responsibility to its foreign workers to ensure imposes additional traceability requirements
recruitment-related fees are not imposed on on palm-based products including derivatives
workers at any stage during the recruitment and oleochemicals. To address this, Taskforce
process. In addition, a voluntary and for Supply Chain and Traceability Management
independent Human Rights Risk Assessment was formed to review and strengthen current
was carried out for Peninsular Malaysia estates practices on traceability of palm products
to assess our policies and practices on while evaluating new compliance measures
human rights’ of foreign workers and its final including the use of technological/digital tools to
recommendations will be deliberated by the ensure continued market access and feedstock
senior management for further actions, if required. security for our downstream operations in Europe.
KLK prioritises health and safety in our workers’ (b) Market and Commodity Risks
working and living environment across all sites.
In this regard, a three-year project to upgrade Similar to most commodities, palm products are
workers’ housing was launched in 2022 to subject to market volatility typically driven by
modify and replace housing fixtures to meet supply and demand fundamentals. Market prices
decent living standards. are influenced by geopolitical/ global financial
developments, unpredictable events/occurrences
(ii) Climate Change Risk affecting major supply-chain such as global
pandemic, extreme weather impact, regular changes
KLK recognises climate change both a risk and
in tariffs/regulations particularly by major palm
responsibility to manage. The plantation segment
importing/exporting countries and significant shifts
is affected by extreme weather conditions,
in competing edible oils/palm oil-related markets.
particularly prolonged drought or low rainfall
Weekly alignment meetings are held with senior
which could lead to low yields and potential forest
management to deliberate on economic updates
fires. In this respect, KLK adopts good agricultural
and market outlooks for collective decisions on
practices and are well-equipped with fire-fighting
plantation sales and hedging. The Group hedges
controls. As a Group, there is growing demand
prices of CPO on Bursa Malaysia Derivatives, where
for businesses to address decarbonisation of
reasonable, to minimise price risks especially forward
operations and products, especially in Europe
positions, where demand and market conditions
where we face intense requirements by regulatory
remain uncertain.
bodies. Decarbonisation roadmaps have been
GOVER NANCE
(c) Operational Risks (d) Investment Risk
(i) Fire and Industrial Risk The Group has embarked on various projects and
investments which include spending on capital
The Group adheres to a zero-burning policy. expenditures for its business units, plants and
However, the Plantation segment is exposed to machineries, and financial market. These activities are
the risk of fire in estates during prolonged periods managed through careful planning, feasibility study,
of dry weather which puts the plantation assets thorough financial analysis, market survey, capital
at risk. In the Oleochemical Division, flammable expenditure approvals and close monitoring by the
industrial chemicals, i.e., hydrogen/methanol/ project management team to ensure the investments
ethylene oxide used in production processes are are viable and meet their objectives.
hazardous and may cause fire and explosion.
(e) Cyber Security Risk
The Group adheres strictly to its safety and
sustainability policies, taking into consideration The Group maintains its cyber security hygiene
the changing risk landscape to manage fire and by strengthening safeguard on data security and
industrial risks. Fully equipped firefighting teams prevention of cyber threats e.g., hacking/phishing,
undergo yearly firefighting training and practices computer virus and ransomware. KLK has in place
strict surveillance which includes erecting the Group IT & Security Policy and leverages on
reservoirs and fire towers at strategic locations technology to protect confidentiality, integrity and
and daily web-monitoring of fire hotspots within availability of data and critical infrastructure. Periodic
and surrounding the estates up to one km from reviews, updates and assessments are carried out
our boundary. The Emergency Response Teams to remain current with the evolving cyber security
are properly trained to contain and control and threats. Annual security awareness training are
leakages or fire in the processing plants. To carried out and IT security alerts are regularly
mitigate the financial impact, the Group’s assets disseminated to employees to foster awareness in
are adequately insured under Industrial All Risk safeguarding the Group’s sensitive data. A Disaster
Policy and Fire-Industrial Policy. Recovery Plan (DRP) is in place to recover and
protect the business IT infrastructure in the event of
(ii) Managing escalating production costs in the adverse events.
plantation segment
Rising fertilisers, agrochemicals and fuel prices, OTHER ELEMENTS OF RISK MANAGEMENT AND
and labour costs are significant challenges in INTERNAL CONTROL
the production of fresh fruit bunches (FFB).
As such, KLK emphasises on generating Board Meetings
higher yields and oil extraction rate (OER)
At a minimum, the Board meets on a quarterly basis and
by adopting good process controls, driving
has a formal agenda on matters for discussion.
higher productivity of workers, and site specific
The CEO leads the presentation of board papers and
agro-management inputs. KLK continuously
provide explanation on pertinent issues. A thorough
improvises mechanisation processes and
deliberation and discussion by the Board is a prerequisite
explore new mechanisation initiatives to further
before arriving at any decision. In addition, the Board is
increase productivity and reduce labour. Palm oil
kept updated on the Group’s activities and operations on
mills by-products were applied to fields to
a timely and regular basis.
further improve the field yields and minimise the
use of fertilisers. Prudent measures are in place
through the budgeting process and continuous
monitoring to manage costs.
Organisational Structure with Formally Defined Integrity and Anti-Corruption

Responsibility Lines and Delegation of Authority
As a responsible corporation, the Group is
KLK has in place an organisational structure with formally committed to doing business with integrity. The
defined responsibility lines and authorities to facilitate employees and associated persons are guided by
quick response to changes in the evolving business the Group’s Anti-Corruption Policy to act professionally,
environment, effective supervision of day-to-day business fairly and with integrity in all business dealings and
conduct and accountability for operation performance. relationships. The Group Donations and Sponsorships
Capital and non-capital expenditures and acquisition and Policy, and Guidelines on Gifts, Benefits and Hospitality
disposal of investment interest are subject to appropriate are in place as testimony of the Group’s commitment
approval processes. The limit of authorities for approval to conduct business in an honest and ethical manner.
levels is established for budgeted and non-budgeted The Group also places emphasis on the business conduct
capital expenditure. of third parties who have dealings or transactions
with the Group by requiring their adherence to the
Performance Management Framework Code of Conduct for Suppliers, and the signing of
Integrity Pledges. During the financial year under
Management reports are generated on a monthly and
review, respective business units had participated in
consistent basis to facilitate the Board and the Group’s
the Anti-Bribery and Anti-Corruption (“ABAC”) Control
Management in performing financial and operation reviews
Self-Assessment (CSA) to self-evaluate the effectiveness
on the various operating units. The reviews encompass
of oversight, risk management and controls implemented
areas such as financial and non-financial key performance
within their operations.
indicators, variances between budget and operation
results and compliance with laws and regulations. The Group’s ABAC Committee oversees the Group’s
ABAC programmes and reports to the Chief Operating
The Group has in place a well-controlled budgeting
Officer, the ARC and the Board. The ABAC Committee
process that provides a responsible accounting framework.
meets regularly to review the effectiveness of ABAC
The Group’s annual budget is approved by the Board prior
controls and compliance matters. The Board is kept abreast
to implementation.
of the Group’s anti-corruption initiatives and compliance
Operational Policies and Procedures programmes via periodic reporting. In this respect, the
Internal Audit Division has undertaken to perform a
Documented policies and procedures form an integral part periodic review on the effectiveness of the Group’s ABAC
of the internal control systems to safeguard shareholders’ programmes, whistleblowing framework, and its state of
investment and the Group’s assets against material losses compliance in financial year 2024. For the coming year,
and ensure complete and accurate financial information. the Group’s ABAC Committee will continue to drive and
These documents consist of approved memoranda, reinforce ABAC awareness amongst employees within
circulars, manuals and handbooks that are continuously the Group.
being revised and updated to meet operational needs.
Where applicable, the requirements of the Group’s existing
Whistleblowing Policy policies, systems and procedures in relation to anti-bribery
and anti-corruption are extended to the Group’s agents,
A Whistleblowing Policy is in place to provide clarity of
counterparties and business partners to ensure that
oversight of the whistleblowing process, protection and
anti-corruption and bribery initiatives are applied
confidentiality to whistleblowers. The policy sets out a
throughout the Group’s supply chain. The Group will
protocol for employees and stakeholders to raise genuine
continue to foster an anti-corruption culture and adhere
possibilities of improprieties, malpractices and misconduct
to the anti-corruption laws and regulations in countries
within the Group for remedial action. In addition, the
in which it operates.
Employee Grievance Redressal Policy is in place to provide
a clear and transparent framework for employees to raise The Group’s stance in combating corruption is publicly
any grievances without fear of retaliation. The policy is available on the Company’s website at www.klk.com.my,
available on the Company’s website at www.klk.com.my. via the Group Anti-Corruption Policy together with the
Group’s Codes of Conduct and Ethics, Sustainability Policy
and other relevant policies and procedures.
GOVER NANCE
Group Internal Audit AAPG 3 does not require the External Auditors to
consider whether the Directors’ Statement on Risk
The Internal Audit Division, which reports directly to the Management and Internal Control covers all risks
Audit and Risk Committee, conducts reviews on the system and controls, or to form an opinion on the adequacy
of internal controls and the effectiveness of the processes and effectiveness of the Group’s risk management
that are in place to identify, evaluate, manage and report and internal control system including the assessment
risks. Their audit practices are guided by Professional and opinion by the Board and Management thereon.
Internal Auditing Standards as prescribed by the Institute The Auditors are also not required to consider
of Internal Auditors, Malaysia. Routine reviews are whether the processes described to deal with material
conducted on units under the Group’s major core activities. internal control aspects of any significant problems
Appropriate recommendations are made to address disclosed in the Annual Report will, in fact, remedy
the issues and weaknesses highlighted and they are the problems.
subsequently followed up to ensure proper implementation.
CONCLUSION
REVIEW OF STATEMENT BY EXTERNAL AUDITORS
The Board has reviewed the adequacy and effectiveness
The External Auditors have reviewed this Statement of the Group’s risk management and internal control
pursuant to the scope set out in the Audit and Assurance system for the year under review and up to the date of
Practice Guide (“AAPG”) 3, Guidance for Auditors approval of this Statement for inclusion in the Annual
on Engagements to Report on Statement on Risk Report. They are of the view that the risk management
Management and Internal Control issued by the Malaysian and internal control system is satisfactory and there were
Institute of Accountants for inclusion in the Annual Report no material losses incurred during the year under review
of the Group for the year ended 30 September 2023, as a result of internal control weakness or adverse
and reported to the Board that nothing has come to their compliance events.
attention that caused them to believe that the Statement
intended to be included in the Annual Report of the Group, For the period under review, the CEO and Group
in all material aspects: Chief Financial Officer have provided assurance to the
Board that the Group’s risk management and internal
(a) has not been prepared in accordance with the control system is operating adequately and effectively,
disclosures required by paragraphs 41 and 42 in all material aspects.
of the Statement on Risk Management and Internal
Control: Guidelines for Directors of Listed Issuers; or This Statement was approved by the Board of Directors
on 8 December 2023.
(b) is factually inaccurate.
AUDIT AND RISK COMMITTEE REPORT
The Board of Directors (“Board”) of KLK is pleased to Financial Reporting

present the Audit and Risk Committee Report for the
financial year ended 30 September 2023. • Reviewed the Group’s quarterly results and year-end
financial statements, and made recommendations to the
The Audit Committee was established in 1993 in line with Board for approval of the same, as detailed below:
the Main Market Listing Requirements (“Main LR”) of Bursa
Malaysia Securities Berhad. Subsequently, on 14 August Date of Quarterly Results/Financial
2018, the Audit Committee was renamed as the Audit and Meetings Statements Reviewed
Risk Committee (“ARC”) to recognise the importance of
21 February Unaudited first quarter results for the
the risk oversight and management functions carried out by
2023 period ended 31 December 2022
the ARC. The Terms of Reference (“TOR”) of the ARC was
also revised and expanded to include the additional roles 22 May Unaudited second quarter results for
and functions conducted by the ARC. 2023 the period ended 31 March 2023
22 August Unaudited third quarter results for the
COMPOSITION AND MEETINGS 2023 period ended 30 June 2023
21 November Unaudited fourth quarter results for
The ARC convened five (5) meetings during the financial
2023 the period ended 30 September
year ended 30 September 2023. Details of the membership
and their attendance at the meetings, are as follows: 2023 and the unaudited results of the
Group for the financial year ended
Number of Meetings 30 September 2023
Members Held Attended 7 December Audited Financial Statements for the

2023 year ended 30 September 2023
Quah Poh Keat 5 5
(Chairman) The review of the unaudited quarterly financial results
Senior Independent is to ensure the disclosures are following the Financial
Non-Executive Director Reporting Standard 134 – Interim Financial Reporting
and applicable disclosure provisions in the Main LR.
Dato’ Yeoh Eng Khoon 5 5
Non-Independent The ARC had also reviewed the Audited Financial
Non-Executive Director Statements of the Company and the Group for the
Anne Rodrigues 5 5 financial year ended 30 September 2023 to ensure it
Independent presented a true and fair view of the financial position
and performance for the year and ensure that it complied
Non-Executive Director
with all disclosures and regulatory requirements and
Cheryl Khor Hui Peng 5 5 recommended the Audited Financial Statements to the
Independent Board for approval.
Non-Executive Director
Risk Management and Internal Control
Mr. Quah Poh Keat, Mrs. Anne Rodrigues and Ms. Cheryl
• Reviewed the Group Risk Management Committee’s
Khor Hui Peng are members of the Malaysian Institute of
meeting minutes and reports and deliberated on the
Accountants. The ARC, therefore, fulfils the requirements
principal risks highlighted and the controls to mitigate
of having at least one (1) of its members be a qualified
the risks.
accountant pursuant to Paragraph 15.09(1)(c) of the Main LR.
• Reviewed and assessed the scope and effectiveness
SUMMARY OF THE WORK OF THE ARC of the processes established by Management to
identify, assess, manage, and monitor financial and
In line with the TOR of the ARC, the work carried out by non-financial (Environmental, Social and Governance)
the ARC in the discharge of its functions and duties for the risks.
financial year ended 30 September 2023 are as follows:
• Assessed the adequacy and effectiveness of risk
management framework which includes corporate
liability provision under Section 17A of the Malaysian
Anti-Corruption Act 2009, the appropriateness of
anti-corruption mitigating measures, corruption risk
management, Group’s Anti-Corruption policy and
procedures as well as whistleblowing cases.
GOVER NANCE
AUDIT AND RISK COMMITTEE REPORT
Internal Audit • Reviewed the Circular to Shareholders in relation to

the proposed shareholders’ mandate for recurrent
• Reviewed and approved the risk-based annual audit
related party transactions.
plan to ensure adequate scope and coverage on the
activities of the Company and the Group. • Reviewed the processes and procedures in the
Policy on RPTs to ensure that related parties are
• Reviewed and deliberated on reports of audits
conducted by the Internal Audit Division (“IAD”). appropriately identified and that RPTs are appropriately
declared, approved, and reported.
• Appraised the adequacy of actions and remedial
measures taken by the Management in resolving Other Duties
the audit issues reported and recommended further
• Reviewed the ARC Report, Statement on Risk
improvement measures.
Management and Internal Control, Corporate
• Reviewed the adequacy of staff resources and access Governance Statement, and additional compliance
to information to ensure audit work was carried out information before submitting for the Board’s approval
effectively. and inclusion in the Company’s Annual Report.
• Assessed the control measures in place to address
corruption risk arising from the group’s governance SUMMARY OF THE WORK OF THE INTERNAL AUDIT
framework, processes and procedures in accordance FUNCTION
with the Guidelines on Adequate Procedure pursuant
to Section 17A of the Malaysian Anti-Corruption Act 2009. The Group has an independent in-house IAD whose
primary function is to assist the ARC in discharging its
External Audit duties and responsibilities. Currently, there are a total of 69
Internal Auditors across the Group in Peninsular Malaysia,
• Reviewed and endorsed the External Auditors’ audit
strategy, scope of work and audit plan for the year, Sabah, and Indonesia.
including the review on audit documentation of IAD’s role is to provide the ARC with independent and
significant component auditors in the subsidiaries. objective reports on the adequacy and effectiveness of
• Met with the External Auditors at least once a year the internal controls and procedures and the extent of
without the presence of Management to review compliance with applicable laws and regulations in the
and discuss the key issues within their duties and operating units within the Group.
responsibilities. There were no major concerns raised by
the External Auditors at the meetings. The Internal Audit’s activities are guided by the Internal
Audit Charter. IAD adopts a risk-based approach focusing
• Reviewed and approved the audit and non-audit on high risks areas and utilizes data analytics to improve
services provided by the External Auditors. The the efficiency and effectiveness for internal audit activities.
amounts of audit and non-audit fees are disclosed in Regular and systematic reviews on the effectiveness of
the Additional Compliance Information on page 128. key controls and processes in the operating units are
conducted to provide reasonable assurance that such
• Obtained written assurance from the External Auditors
systems will continue to operate satisfactorily and effectively.
to confirm their independence throughout the conduct
of the audit engagement in accordance with the terms Apart from the audit assignments in Malaysia, Indonesia,
of all relevant professional and regulatory requirements. China, Europe, and Liberia, IAD had also carried out
• The ARC was satisfied with the work performed by the investigations on specific areas as directed by the ARC and
External Auditors based on their quality of services, Management. The audit reports and investigation reports
sufficiency of resources, performance, independence were submitted to the ARC on a quarterly basis. Periodic
and professionalism, and their ability to conduct follow-up audits were carried out where appropriate to
the external audit within an agreed timeline fixed by ensure recommendations for corrective actions were
Management. Accordingly, it was recommended to the implemented and enforced.
Board to re-appoint Messrs. BDO PLT as the Auditors of
the Company and approve their audit fee. A resolution In addition, IAD had conducted in-house audit training
for the re-appointment will be tabled for shareholders’ for Auditors to enhance competencies and carried out
approval at the forthcoming Annual General Meeting. training for the operating units’ personnel to enhance their
awareness on internal controls.
Related Party Transactions which include Recurrent
Related Party Transactions (“RPT”) The total costs incurred for the Group Internal Audit
function for the financial year ended 30 September 2023
• Reviewed the RPTs entered by the Company and the was RM8.43 million.
Group and disclosure of such transactions pursuant
to Chapter 10 - Main LR of Bursa Malaysia Securities
Berhad, Financial Reporting Standard 124 and the
Companies Act 2016.
ADDITIONAL COMPLIANCE INFORMATION
The following information is provided in accordance with the Main Market Listing Requirements of Bursa Malaysia
Securities Berhad:
UTILISATION OF PROCEEDS RAISED FROM CORPORATE PROPOSALS
There were no proceeds raised from any corporate proposals during the financial year.
AUDIT AND NON-AUDIT FEES
(i) The amount of audit fees paid or payable to the External Auditors, Messrs. BDO PLT, for services rendered
to the Company and the Group for the financial year ended 30 September 2023 amounted to RM331,000 and
RM1,104,000 respectively.
(ii) The amount of non-audit fees (assurance related services) paid or payable to the External Auditors, Messrs. BDO PLT
and its affiliates, for services rendered to the Company and the Group for the financial year ended 30 September 2023
amounted to RM13,000 and RM22,000 respectively.
The details of the non-audit work were as follows:
Company Group
Non-audit Work (Assurance Related Services) RM’000 RM’000
Review of housing development accounts – 9

Review of Statement of Risk Management and Internal Control 9 9
Review of debt-to-equity ratio 4 4
Total 13 22
MATERIAL CONTRACTS
There were no material contracts entered into by the Company or its subsidiaries involving the interest of Directors and
major shareholders during the financial year other than in the ordinary course of business.
RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE (“RRPT”)
The details of the RRPTs entered into by the Company and its subsidiaries during the financial year are disclosed in
Note 39 to the financial statements on pages 194 to 195.
FINANCIAL STATEMENTS
130 Report of the Directors 144 Statement of Cash Flows of the
135 Statements of Profit or Loss Company
136 Statements of Other 146 Notes to the Financial Statements
Comprehensive Income 219 Directors’ Statement Pursuant to
137 Statements of Financial Position Section 251(2) of the Companies
Act 2016
Changes in Equity 219 Statutory Declaration Pursuant
to Section 251(1)(B) of the
139 Statement of Changes in Equity
Companies Act 2016
of the Company
220 Report of the Auditors
Cash Flows
REPORT
REPORTOF
OFTHE
THEDIRECTORS
DIRECTORS
The Directors of Kuala Lumpur Kepong Berhad hereby submit their Report together with the audited financial statements of
the Group and of the Company for the financial year ended 30 September 2023.
PRINCIPAL ACTIVITIES
The Company carries on the business of producing and processing palm products and natural rubber on its plantations. The
Group’s subsidiaries, associates and joint ventures are involved in the business of plantation, manufacturing, property
development and investment holding.
ULTIMATE HOLDING COMPANY

The Company is a subsidiary of Batu Kawan Berhad, which is incorporated in Malaysia and regarded by the Directors as the
Company's ultimate holding company, during the financial year and until the date of this report.
SUBSIDIARIES
The details of the Company's subsidiaries are disclosed in Note 43 to the financial statements.
RESULTS
Group Company
RM'000 RM'000
Profit before taxation 1,152,227 810,428
Tax (expense)/income (161,530) 16,459
Profit for the year 990,697 826,887
Attributable to:
Equity holders of the Company 834,259 826,887
Non-controlling interests 156,438 -
990,697 826,887
DIVIDENDS
The amounts paid by way of dividends by the Company since the end of the previous financial year were:
(i) a final single tier dividend of 80 sen per share amounting to RM862,749,000 in respect of the year ended 30 September
2022 was paid on 28 February 2023, as proposed in last year's report; and
(ii) an interim single tier dividend of 20 sen per share amounting to RM215,687,000 in respect of the year ended 30
September 2023 was paid on 1 August 2023.
On 8 December 2023, the Directors declared the payment of a final single tier dividend of 40 sen per share amounting to
RM431,374,000 for the year ended 30 September 2023 (“Final Dividend”).
The Board has determined that the Dividend Reinvestment Plan (“DRP”) which was approved by the shareholders of the
Company at the Annual General Meeting of the Company (“AGM”) held on 13 February 2018 will apply to the entire portion of
the Final Dividend. The renewal of the authority for the Board to allot and issue new shares of the Company in relation to the
DRP was approved by the shareholders at the AGM held on 23 February 2023. The details of the DRP are disclosed in Note
11 to the financial statements.
The issue price of the new shares of the Company to be issued pursuant to the DRP, books closure date and payment date
in respect of the Final Dividend will be announced in due course.
RESERVES AND PROVISIONS

There were no material transfers to or from reserves and provisions during the financial year.
ISSUED AND PAID-UP CAPITAL

During the financial year, the Company has not made any purchase of its own shares or re-sale of the treasury shares since
the mandate for the renewal of share buy back was approved by the shareholders of the Company at the Annual General
Meeting (“AGM”) held on 23 February 2023. The Company transferred part of its treasury shares to the eligible senior
management under the employees’ share grant scheme. Details of the shares bought back, transferred and retained as
treasury shares are as follows:
130
FINANCIAL S TATEMENTS
REPORT OFDIRECTORS
REPORT OF THE THE DIRECTORS (Continued)
Per Share
No. of Shares Bought Highest Lowest Average Total
Month Back/(Transferred) Price Paid Price Paid Price Paid Consideration
and Held as Treasury Shares
RM RM RM RM'000
February 1999 1,208,000 5.90 5.10 5.58 6,823
March 1999 1,131,000 5.25 4.72 4.86 5,559
January 2002 200,000 5.30 5.30 5.30 1,065
2,539,000 13,447
February 2021 (105,216) (558)
2,433,784 12,889
February 2021 30,000 23.00 23.00 23.00 693
June 2021 250,000 20.80 20.24 20.53 5,144
July 2021 20,000 20.28 20.06 20.15 404
August 2021 397,000 19.60 18.52 19.31 7,679
3,130,784 26,809
February 2022 (269,122) (2,305)
2,861,662 24,504
February 2023 (279,863) (2,396)
2,581,799 22,108
The mandate given by the shareholders will expire at the forthcoming AGM and an ordinary resolution will be tabled at the
forthcoming AGM for shareholders to renew the mandate for another year.
DIRECTORS OF THE COMPANY

The Directors who served during the financial year until the date of this report are:
R. M. Alias
Tan Sri Dato' Seri Lee Oi Hian *
Dato' Lee Hau Hian *
Dato' Yeoh Eng Khoon
Quah Poh Keat
Anne Rodrigues
Lee Jia Zhang *
Cheryl Khor Hui Peng
Tan Sri Shahril Ridza Bin Ridzuan (appointed w.e.f. 2 May 2023)
Tan Sri Azlan Bin Mohd Zainol (passed away on 12 January 2023)
* Tan Sri Dato’ Seri Lee Oi Hian, Dato’ Lee Hau Hian and Lee Jia Zhang are also directors of the Company’s subsidiaries.
DIRECTORS OF SUBSIDIARIES
The names of the Directors of the Company’s subsidiaries in office since the beginning of the financial year to the date of this
report are:
Abd Hadi Bin Manas Chen Chee Hee Foong Huey Yuan
Akhmad Haris Suharto, SH Chong Choong Khim Foo Kuan Lee *
Akinori Kuwauchi * Chua Boon Hook Francesco di Filippo
Al Hakim Hanafiah Chuah Kay Kian Francis Sandanaraj a/l John Joseph
Albert Su Sing Yong Datin Nabilah Binti Mahiaddin Gea Ban Peng
Andrew John Styzinski ** Dato’ Tan Thean Thye Geoffrey Collins
Andrew Wylie * Datuk Victor Wong Chet Sing + Goh Keng Ee
Arif Sugandi Dinakaran a/l Madhavan Goo Swee Eng @ Goh Swee Eng
Arifin Susilo Adiasa Djap Tet Fa * Guy Alexander Bessant
Arota G Telaumbanua.IR Dr. Bors Cajus Abele * Hanif Zakwan Bin Zaifuddin
Aw Chung Cheong Dr. Kee Khan Kiang Har Wai Ming
Azman Hanafi Bin Abdullah Drs. Sunarjo Musa Hitoshi Sasaki
Baskaran a/l Rengasamy + Edwin Soesilo Adiasa Ho Tze Sung
Boon Yen Fei Ellen Maria Koster + Hoh Chui Lai *
Bruce Counsel + Erik Averdjik * Indra Gunawan
Chai Chew Yoon + Erika Mushtarina Bin Mat Ariffin ** Janaki Raman a/l Shanmugam
131
REPORT
REPORT OFDIRECTORS
OF THE THE DIRECTORS (Continued)
Jasvinder Singh a/l Joginder Singh Ng Jia Jia + Tan Poh Teck
Johari Bin Salleh Ng Seng Chueng + Tan Shu Hui *
Juhari Bin Ahmad Nico Tahir + Tan Sri Dato' Yap Suan Chee
Jusman Bahudin Noor Ahmir Bin Ramlan Tan Sri Dato’ Hj Esa Bin Hj Mohamed
Kanapathi Rao Al A Natchana Norbaiti Bin Jarabe Tang Kok Hong
Klaus H. Nottinger Ong Kuan Aik Teh Kwan Wey
Kong Kwok Lum Ooi Liang Hin Teoh Yee Thuan *
Kook Hui Ling * Ooi Yew Hua Tham Yoke Ling +
Kow Tiat Yong Oscar Lee Kim Law Thomas Thomas
Kuay Cheow Kwee Own Boon Aik Tschuor Adrian
Kunalan Thamudaran ++ Pang Chee Hwee * Tukimin
Lee Guo Zhang Pang Pik Kuang Uwe Halder
Lee Nyit Kean + Patrick Ng Hong Chuan Vemal Venugopal Naidu
Lee Toong Hian Pines Ltd Venodh Selvam a/l Kalaselvam
Lee Tze Ian Ralf Ewering Veronica Lusi Herdiyanti
Lee Wen Ling Ravindra Panchalingam Vijayakumar a/l Sathivalu
Lee Yuan Zhang Redzwan Bin Subari Walter Eric Salisbury Bryant ++
Leong Tat Loong Roberto Cella * William Ong Eng San
Lim Chian Rozi Bin Ibrahim Willie Wong Chik Hing +
Lim Kiam Chye Samsudin Bin Tukimin + Wong Chee Kiat *
Lim Shen Wei Saniman Bin Md Apandi Wong Kim Sun
Lim Teng Hong Saparudin Bin Rabayani Wong Shew Yam @ Norman Wong
Ling Ping Sheun Arthur Sashi Nambiar Wong Shew Yee @ Eric
Mah Fak Chin Satoshi Hirohara Xia Jian Jun
Mardiana Rahayu Binti Tukiran ++ Shivaganesh Kuppusamy Yap Miow Kien
Mark Bramer Stephen Hii King Vie Yeoh Gim Khoon
Md. Nasrudin Bin Ismail Subramaniam a/l Kumarasamy * Yow Boon Beng
Mohmad Azman Bin Abdul Majid Tai Woon Chein
Murali a/l Thomas Takatsugu Sumitani +
* Appointed during the financial year.

+ Resigned/retired/ceased/passed away during the financial year.
++ Resigned after the financial year but before the date of this report.
** Appointed after the financial year but before the date of this report.
DIRECTORS’ SHAREHOLDINGS
The Directors holding office at the end of the financial year and the details of the Directors’ shareholdings in the Company and
its ultimate holding company as recorded in the Register of Directors’ Shareholdings were as follows:
Number of Shares
Balance at Balance at
Shares in the Company 1.10.2022 / Date Bought Sold 30.9.2023
of appointment *
Direct interest
R. M. Alias 342,715 - - 342,715
Tan Sri Dato’ Seri Lee Oi Hian 151,112 - - 151,112
Dato’ Lee Hau Hian 84,536 - - 84,536
Dato’ Yeoh Eng Khoon 340,176 - - 340,176
Anne Rodrigues 1,523 - - 1,523
Lee Jia Zhang 93,000 36,000 - 129,000
Tan Sri Shahril Ridza Bin Ridzuan * 5,000 - - 5,000
Deemed interest
R. M. Alias 1,000 - - 1,000
Tan Sri Dato’ Seri Lee Oi Hian 515,187,496 36,000 - 515,223,496
Dato’ Lee Hau Hian 515,094,496 - - 515,094,496
Dato’ Yeoh Eng Khoon 4,838,476 - - 4,838,476
132
REPORT
REPORT OFDIRECTORS
OF THE THE DIRECTORS (Continued)
Number of Shares
Balance at Balance at
Shares in the ultimate holding company, 1.10.2022 Bought Sold 30.9.2023
Batu Kawan Berhad
Direct interest
Tan Sri Dato’ Seri Lee Oi Hian 1,665,428 - - 1,665,428
Dato’ Lee Hau Hian 1,583,444 - - 1,583,444
Dato’ Yeoh Eng Khoon 323,564 - - 323,564
Anne Rodrigues 2,000 - - 2,000
Lee Jia Zhang 10,271 - - 10,271
Deemed interest
Tan Sri Dato’ Seri Lee Oi Hian 218,590,309 - - 218,590,309
Dato’ Lee Hau Hian 215,924,419 - - 215,924,419
Dato’ Yeoh Eng Khoon 22,105,474 - - 22,105,474
By virtue of their deemed interests in the shares of the Company and its ultimate holding company, Tan Sri Dato’ Seri Lee Oi
Hian and Dato’ Lee Hau Hian are deemed to have interests in the shares of all the subsidiaries and related corporations to
the extent that the Company and the ultimate holding company have interests.
Other than as disclosed above, no other Directors who held office at the end of the financial year has any shares in the
Company and its related corporations during the financial year.
DIRECTORS’ BENEFITS
Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any
benefit (other than those fees and other benefits included in the aggregate amount of remuneration received or due and
receivable by Directors as shown in the Group's financial statements or remuneration received or due and receivable by
Directors or the fixed salary of full time employees of the Company or of related corporations) by reason of a contract made
by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company
in which the Director has a substantial financial interest, except for any deemed benefits that may accrue to certain Directors
by virtue of normal trading transactions by the Group and the Company with related parties as disclosed in Note 39 to the
financial statements.
There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the
Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body
corporate.
DIRECTORS’ REMUNERATION
Directors’ remuneration of the Group and of the Company for the financial year ended 30 September 2023 were as follows:
Group and Company

RM'000
Fees provided 2,284
Other emoluments 19,786
Benefits-in-kind 85
22,155
INDEMNITY AND INSURANCE COSTS

During the financial year, Directors and Officers of the Group are covered under the Directors' and Officers' Liability Insurance
Policy (“Policy”) in respect of liabilities arising from acts committed in their respective capacity as, inter alia, Directors and
Officers of the Group subject to the terms of the Policy. The total amount of Directors' and Officers' liability insurance effected
for the Directors and Officers of the Group was RM50 million.
OPTIONS GRANTED OVER UNISSUED SHARES

No options were granted to any person to take up unissued shares of the Company during the financial year.
133
REPORT OF THE DIRECTORS (Continued)

REPORT OF THE DIRECTORS
OTHER STATUTORY INFORMATION

Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to
ascertain that:
(i) all known bad debts have been written off and adequate provision made for doubtful debts; and
(ii) any current assets which were unlikely to be realised in the ordinary course of business have been written down to an
amount which they might be expected so to realise.
At the date of this report, the Directors of the Company are not aware of any circumstances:
(i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the Group and
in the Company inadequate to any substantial extent; or
(ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company
misleading; or
(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of
the Company misleading or inappropriate; or
(iv) not otherwise dealt with in this report or the financial statements that would render any amount stated in the financial
statements of the Group and of the Company misleading.
At the date of this report, there does not exist:
(i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which
secures the liabilities of any other person; or
(ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year except
as disclosed in Note 42 to the financial statements.
No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable
within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may
substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due.
In the opinion of the Directors, the financial performance of the Group and of the Company for the financial year ended 30
September 2023 have not been substantially affected by any item, transaction or event of a material and unusual nature nor
have any such item, transaction or event occurred in the interval between the end of that financial year and the date of this
report.
AUDITORS
The auditors, BDO PLT (201906000013 (LLP0018825-LCA) & AF0206), have expressed their willingness to continue in office.
Auditors’ remuneration of the Group and of the Company for the financial year ended 30 September 2023 were as follows:
Group Company
RM'000 RM'000
Statutory audit 4,268 331
Assurance related services 83 13
Non-audit services 89 -
4,440 344
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

(Chairman) (Chief Executive Officer)
8 December 2023
134
STATEMENTS OF PROFIT OR LOSS
STATEMENTS OF PROFIT
for the year ended 30 September 2023 OR LOSS
for the year ended 30 September 2023
Group Company
2023 2022 2023 2022
Note RM'000 RM'000 RM'000 RM'000
Revenue 4 23,647,586 27,149,474 2,045,694 3,169,679

Cost of sales (20,773,791) (22,174,698) (839,307) (671,621)
Gross profit 2,873,795 4,974,776 1,206,387 2,498,058
Other operating income 536,074 468,843 177,668 71,326
Distribution costs (462,032) (509,404) (11,946) (12,807)
Administration expenses (812,600) (804,346) (169,900) (188,791)
Net (impairment losses)/reversals of impairment
of financial assets (59,770) 11,962 - -
Other operating expenses (322,045) (747,856) ¤ (108,076) (309,170)
Operating profit 5 1,753,422 3,393,975 1,094,133 2,058,616
Finance costs 6 (405,676) (358,130) (283,705) (281,307)
Share of (loss)/profit of equity accounted
associates, net of tax (174,919) 142,617 - -
Share of (loss)/profit of equity accounted
joint ventures, net of tax (20,600) 41,016 ¤ - -
Profit before taxation 1,152,227 3,219,478 810,428 1,777,309
Tax (expense)/income 9 (161,530) (781,121) 16,459 (116,293)
Profit for the year 990,697 2,438,357 826,887 1,661,016
Attributable to:
Equity holders of the Company 834,259 2,166,290 826,887 1,661,016
Non-controlling interests 156,438 272,067 - -
990,697 2,438,357 ¤ 826,887 1,661,016
Sen Sen Sen Sen
Basic/Diluted earnings per share 10 77.4 200.9 76.7 154.1
The accompanying notes form an integral part of the financial statements.

135
STATEMENTS OF OTHER COMPREHENSIVE INCOME

STATEMENTS OF OTHER
for the year ended 30 September 2023 COMPREHENSIVE INCOME
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Profit for the year 990,697 2,438,357 826,887 1,661,016
Other comprehensive income/(loss) that will be

reclassified subsequently to profit or loss, net of tax
Currency differences arising from translation of net
investments in foreign entities 383,223 182,713 - -
Share of other comprehensive (loss)/income in associates (40,811) 112,610 ¤ - -
342,412 295,323 ¤ - -
Other comprehensive (loss)/income that will not be
reclassified subsequently to profit or loss, net of tax
Net changes in fair value of equity instruments at fair value
through other comprehensive income (50,218) 7,330 (125,282) (572,216)
Share of other comprehensive (loss)/income in associates (19,277) 63,420 - -
Share of other comprehensive loss in joint venture (18) - - -
(Loss)/Gain on remeasurement of defined benefit plans (11,148) 70,757 ¤ - -
(80,661) 141,507 ¤ (125,282) (572,216)
Total other comprehensive income/(loss) for the year 261,751 436,830 (125,282) (572,216)
Total comprehensive income for the year 1,252,448 2,875,187 701,605 1,088,800
Attributable to:
Equity holders of the Company 1,111,087 2,608,423 701,605 1,088,800
Non-controlling interests 141,361 266,764 - -
1,252,448 2,875,187 ¤ 701,605 1,088,800
136
STATEMENTS OF FINANCIAL POSITION

STATEMENTS OF FINANCIAL POSITION
as at 30 September 2023
as at 30 September 2023
Group Company
2023 2022 2023 2022
Note RM'000 RM'000 RM'000 RM'000
Assets
Property, plant and equipment 12 12,905,633 12,123,317 1,796,494 1,731,855
Right-of-use assets 13 1,325,678 1,338,533 243,544 337,490
Investment property 14 23,503 - - -
Inventories 15 2,012,424 1,991,597 - -
Goodwill on consolidation 16 351,725 336,241 - -
Intangible assets 17 52,885 17,142 - -
Investments in subsidiaries 18 - - 9,333,865 8,737,587
Investments in associates 19 2,288,845 2,366,997 ¤ 31,750 31,725
Investments in joint ventures 20 66,063 215,962 - -
Other investments 21 745,242 595,711 125,321 146,550
Other receivables 22 394,069 425,925 - -
Amounts owing by subsidiaries 18 - - 1,514,273 2,029,289
Deferred tax assets 23 478,365 322,289 - -
Derivative financial assets 28 1,249 - - -
Total non-current assets 20,645,681 19,733,714 13,045,247
¤ 13,014,496
Inventories 15 2,956,580 4,024,163 77,256 81,810
Biological assets 24 219,198 209,344 34,088 29,621
Trade receivables 25 2,268,228 1,911,690 26,744 20,168
Other receivables, deposits and prepayments 26 1,201,912 838,336 294,994 24,772
Amounts owing by subsidiaries 18 - - 81,060 155,042
Contract assets 27 74,489 83,186 - -
Tax recoverable 212,720 41,253 18,368 -
Derivative financial assets 28 47,663 545,266 2,860 83,754
Short term funds 29 117,798 66,375 57,830 16,223
Cash and cash equivalents 30 2,382,122 2,785,198 463,101 1,058,682
Total current assets 9,480,710 10,504,811 1,056,301 1,470,072
Total assets 30,126,391 30,238,525 14,101,548 14,484,568
Equity
Share capital 31 1,382,683 1,379,249 1,382,683 1,379,249
Reserves 32 12,958,161 12,932,297 5,345,934 5,722,765
14,340,844 14,311,546 6,728,617 7,102,014
Less: Cost of treasury shares (22,108) (24,504) (22,108) (24,504)
Total equity attributable to equity holders
of the Company 14,318,736 14,287,042 6,706,509 7,077,510
Non-controlling interests 1,825,023 1,764,780 - -
Total equity 16,143,759 16,051,822 ¤6,706,509 7,077,510
Liabilities
Deferred tax liabilities 23 1,076,632 1,098,679 188,531 195,771
Lease liabilities 33 155,095 158,322 41,680 121,895
Deferred income 34 81,633 90,149 - -
Provision for retirement benefits 35 535,302 482,598 41,749 36,653
Borrowings 36 7,002,610 7,208,861 6,680,000 6,800,000
Derivative financial liabilities 28 21 - - -
Total non-current liabilities 8,851,293 9,038,609 6,951,960 7,154,319
Trade payables 37 817,728 1,000,516 8,043 7,612
Other payables 38 1,152,355 1,105,891 142,437 185,872
Amounts owing to subsidiaries 18 - - 3,156 2,682
Contract liabilities 27 131,123 138,121 - -
Deferred income 34 8,656 8,628 - -
Lease liabilities 33 26,034 22,514 19,234 28,526
Borrowings 36 2,891,365 2,173,427 270,000 -
Tax payable 42,022 154,681 - 27,802
Derivative financial liabilities 28 62,056 544,316 209 245
Total current liabilities 5,131,339 5,148,094 443,079 252,739
Total liabilities 13,982,632 14,186,703 7,395,039 7,407,058
Total equity and liabilities 30,126,391 30,238,525 14,101,548 14,484,568

137
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED STATEMENT
for the year ended 30 September 2023 OF CHANGES IN EQUITY
Attributable to the equity holders of the Company

Exchange Fair Non-
Share Capital Fluctuation Value Retained Other Treasury Controlling Total
Capital Reserve Reserve Reserve Earnings Reserve Shares Total Interests Equity
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
At 1 October 2021 1,375,695 1,568,336 113,371 743,755 9,019,962 (935,048) (26,809) 11,859,262 2,347,778 14,207,040
Net change in fair value of equity instruments - - - 7,330 - - - 7,330 - 7,330
Realisation on fair value of equity instruments - - - (162) 162 - - - - -
Transfer of reserves - 84,515 - - (84,515) - - - - -
Share of other comprehensive income in associates - - 112,610 - 63,420 - - 176,030 - 176,030
Gain on remeasurement of defined benefit
plans (Note 35) - - - - 70,083 - - 70,083 674 70,757
Currency differences arising from translation of
net investments in foreign entities - 1,490 187,200 - - - - 188,690 (5,977) 182,713
Total other comprehensive income/(loss) for
the year - 86,005 299,810 7,168 49,150 - - 442,133 (5,303) 436,830
Profit for the year - - - - 2,166,290 - - 2,166,290 272,067 2,438,357
Total comprehensive income for the year - 86,005 299,810 7,168 2,215,440 - - 2,608,423 266,764 2,875,187
Acquisition through business combination - - - - - - - - 213,189 213,189
Expiry of unconditional Mandatory General Offer
on acquisition of a subsidiary - - - - - 125,590 - 125,590 - 125,590
Purchase of shares from non-controlling interests - - (1,431) - (27,371) 809,458 - 780,656 (893,647) (112,991)
Issuance of shares to non-controlling interests - - - - - - - - 10 10
Redemption of redeemable preference shares - - - - - - - - (6,400) (6,400)
Employees’ share grant scheme 3,554 - - - - - 2,305 5,859 - 5,859
Effect of changes in shareholdings in subsidiaries - - 1,163 - (15,755) - - (14,592) 11,083 (3,509)
Dividend - FY2021 final - - - - (862,525) - - (862,525) - (862,525)
- FY2022 interim - - - - (215,631) - - (215,631) - (215,631)
Dividends paid to non-controlling interests
by subsidiaries - - - - - - - - (173,997) (173,997)
Total transactions with owners of the Company 3,554 - (268) - (1,121,282) 935,048 2,305 (180,643) (849,762) (1,030,405)
At 30 September 2022 1,379,249 1,654,341 412,913 750,923 10,114,120 - (24,504) 14,287,042 1,764,780 16,051,822
Net change in fair value of equity instruments - - - (50,218) - - - (50,218) - (50,218)
Transfer of reserves - 11,912 - - (11,912) - - - - -
Share of other comprehensive loss in associates - - (40,811) - (19,277) - - (60,088) - (60,088)
Share of other comprehensive loss in joint venture - - - - (18) - - (18) - (18)
Loss on remeasurement of defined benefit
plans (Note 35) - - - - (9,210) - - (9,210) (1,938) (11,148)
Other currency differences arising from translation
of net investments in foreign entities ¤ - 1,043 395,319 - - - - 396,362 (13,139) 383,223
Total other comprehensive income/(loss) for
the year - 12,955 354,508 (50,218) (40,417) - - 276,828 (15,077) 261,751
Profit for the year - - - - 834,259 - - 834,259 156,438 990,697
Total comprehensive income/(loss) for the year - 12,955 354,508 (50,218) 793,842 - - 1,111,087 141,361 1,252,448
Acquisition through business combination - - - - - - - - 15,927 15,927
Employees’ share grant scheme 3,434 - - - - - 2,396 5,830 - 5,830
Effect of changes in shareholdings in subsidiaries - - - - (6,787) - - (6,787) (11,819) (18,606)
Dividend - FY2022 final - - - - (862,749) - - (862,749) - (862,749)
- FY2023 interim - - - - (215,687) - - (215,687) - (215,687)
Dividends paid to non-controlling interests
by subsidiaries - - - - - - - - (85,226) (85,226)
Total transactions with owners of the Company 3,434 - - - (1,085,223) - 2,396 (1,079,393) (81,118) (1,160,511)
At 30 September 2023 1,382,683 1,667,296 767,421 700,705 9,822,739 - (22,108) 14,318,736 1,825,023 16,143,759
Note 31 Note 32
138
STATEMENT OF CHANGES IN EQUITY OF THE COMPANY
STATEMENT OF CHANGES IN EQUITY OF THE COMPANY
Fair
Share Capital Value Retained Treasury Total
Capital Reserve Reserve Earnings Shares Equity
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
At 1 October 2021 1,375,695 1,087,296 639,969 3,984,856 (26,809) 7,061,007

Net change in fair value of equity instruments - - (572,216) - - (572,216)
Total other comprehensive loss for the year - - (572,216) - - (572,216)
Profit for the year - - - 1,661,016 - 1,661,016
Total comprehensive (loss)/income for the year - - (572,216) 1,661,016 - 1,088,800
Employees’ share grant scheme 3,554 - - - 2,305 5,859
Dividend - FY2021 final - - - (862,525) - (862,525)
- FY2022 interim - - - (215,631) - (215,631)
Total transactions with owners of the Company 3,554 - - (1,078,156) 2,305 (1,072,297)
At 30 September 2022 1,379,249 1,087,296 67,753 4,567,716 (24,504) 7,077,510
Net change in fair value of equity instruments - - (125,282) - - (125,282)
Total other comprehensive loss for the year - - (125,282) - - (125,282)
Profit for the year - - - 826,887 - 826,887
Total comprehensive (loss)/income for the year - - (125,282) 826,887 - 701,605
Employees’ share grant scheme 3,434 - - - 2,396 5,830
Dividend - FY2022 final - - - (862,749) - (862,749)
- FY2023 interim - - - (215,687) - (215,687)
Total transactions with owners of the Company 3,434 - - (1,078,436) 2,396 (1,072,606)
At 30 September 2023 1,382,683 1,087,296 (57,529) 4,316,167 (22,108) 6,706,509
Note 31 Note 32
139
CONSOLIDATED STATEMENT OF CASH FLOWS

for the year ended 30 September 2023 OF CASH FLOWS
2023 2022
RM’000 RM’000
Cash flows from operating activities
Profit before taxation 1,152,227 3,219,478
Adjustments for:
Depreciation of property, plant and equipment 902,460 867,786
Depreciation of right-of-use assets 58,280 59,223
Amortisation of intangible assets 5,470 3,727
Amortisation of deferred income (8,646) (8,653)
Impairment of property, plant and equipment 27,821 43,313
Impairment of intangible assets 44 -
Property, plant and equipment written off 7,472 6,793
Gain on disposal of property, plant and equipment (2,888) (1,590)
Surplus on government acquisition of land (42,218) (4,049)
Surplus on disposal of land (10,212) (3,698)
Surplus on disposal of a business line (76,443) -
Surplus on disposal of shares in a subsidiary - (2,119)
Retirement benefits provision 64,527 68,415
Impairment of trade receivables 922 661
Trade receivables written off 1,220 4,730
Reversal of impairment of trade receivables (3,213) (20,693)
Impairment of other receivables 20 7
Other receivables written off - 6,348
Impairment of plasma project receivables 62,915 8,586
Reversal of impairment of plasma project receivables (874) (523)
Write down of inventories to net realisable value 165,461 285,841
Write back of slow moving inventories (331) (429)
Write back of inventories previously written down to net realisable value (108,456) (7,410)
Finance costs 398,618 352,458
Lease interest expense 7,058 5,672
Dividend income (41,905) (33,855)
Interest income (79,486) (61,367)
Exchange gain (8,275) (8,161)
Net change in fair value of derivatives 14,923 (73,271)
Net change in fair value of biological assets (11,179) 15,337
Net change in fair value of debt instruments (3,650) (2,754)
(Gain)/Loss on termination of leases (65) 130
Employees' share grant scheme 5,830 5,859
Share of loss/(profit) of equity accounted associates, net of tax 174,919 (142,617)
Share of loss/(profit) of equity accounted joint ventures, net of tax 20,600 (41,016)
Operating profit before working capital changes 2,672,946 4,542,159
Working capital changes:
Inventories 1,166,700 (1,259,108)
Biological assets 2,335 (12,376)
Trade and other receivables (491,823) 473,991
Contract assets 12,345 (75,738)
Trade and other payables (297,603) 280,016
Contract liabilities (6,104) 15,105
Deferred income - 500
Cash generated from operations 3,058,796 3,964,549
Interest paid (404,413) (355,677)
Tax paid (644,404) (884,973)
Retirement benefits paid (51,665) (51,157)
Net cash generated from operating activities 1,958,314 2,672,742
140
for the year ended 30 September OF CASH FLOWS
2023 (Continued)
2023 2022
RM'000 RM'000
Cash flows from investing activities
Purchase of property, plant and equipment (1,554,525) (1,252,203)
Purchase of right-of-use assets (14,502) (15,470)
Expenditure on land held for property development (20,827) (8,695)
Purchase of shares in subsidiaries, net of cash acquired (Note B) (108,892) (303,834)
Purchase and subscription of shares in an associate (17,274) (479,062)
Purchase of shares from non-controlling interests (18,880) (922,449)
Purchase of other investments (145,304) (27,822)
Development of investment property (4,297) -
Purchase of intangible assets (1,755) (1,151)
Proceeds from disposal of property, plant and equipment 8,687 9,689
Compensation from government on land acquired 42,372 4,123
Proceeds from disposal of a business line 79,334 -
Proceeds from disposal of a subsidiary, net of cash disposed (Note C) - 1,964
Proceeds from disposal of other investments - 514
Repayment of advances from a joint venture 123,599 20,993
(Increase)/Decrease in short term funds (51,107) 205,464
(Advances to)/Repayment from plasma project receivables (15,436) 43,333
Dividends received from associates 12,482 184,720
Dividends received from investments 41,447 33,679
Interest received 63,909 44,363
Net cash used in investing activities (1,580,969) (2,461,844)
Cash flows from financing activities

Drawdown of term loans 238,240 1,055,033
Issuance of Islamic medium term notes - 2,000,000
Repayment of term loans (530,391) (1,425,468)
Redemption of Islamic medium term notes - (1,000,000)
Payments of lease liabilities (24,002) (18,239)
Payments of lease interest (7,111) (5,569)
Net drawdown/(repayment) of short term borrowings 773,843 (85,637)
Dividends paid to shareholders of the Company (1,078,436) (1,078,156)
Dividends paid to non-controlling interests (85,226) (173,997)
Issuance of shares to non-controlling interests - 10
Redemption of redeemable preference shares from non-controlling interests - (6,400)
Net cash used in financing activities (713,083) (738,423)
Net decrease in cash and cash equivalents (335,738) (527,525)

Cash and cash equivalents at beginning of year 2,614,904 3,082,738
Currency translation differences on opening balances 18,827 59,691
Cash and cash equivalents at end of year (Note A) 2,297,993 2,614,904
Notes to the consolidated statement of cash flows

A. Cash and cash equivalents
Cash and cash equivalents consist of:
Deposits with licensed banks (Note 30) 596,090 1,169,511
Money market funds (Note 30) 507,224 779,002
Cash and bank balances (Note 30) 1,278,808 836,685
Bank overdrafts (Note 36) (84,129) (170,294)
2,297,993 2,614,904
141

for the year ended 30 September 2023 (Continued)
2023 2022
RM'000 RM'000
B. Analysis of purchase of shares in subsidiaries
Property, plant and equipment 80,259 668,279
Right-of-use assets 1,804 17,377
Intangible assets 38,117 -
Inventories 64,018 5,069
Net current assets 42,231 3,315
Borrowings (49,349) (7,005)
Deferred tax liabilities (12,239) (139,081)
Provision for retirement benefits (3,733) (14,983)
Lease liabilities (1,836) -
Fair value of identifiable net assets of subsidiaries acquired, representing total
purchase price 159,272 532,971
Non-controlling interests (15,927) (213,189)
Purchase price satisfied by cash 143,345 319,782
Less: Cash and cash equivalents of subsidiaries acquired (34,453) (15,948)
Cash outflow on acquisition of subsidiaries 108,892 303,834
C. Analysis of disposal of shares in a subsidiary

Property, plant and equipment - 3
Net current liabilities - (315)
Exchange fluctuation reserves - 164
Total net liabilities of a subsidiary disposed - (148)
Surplus on disposal of shares in a subsidiary - 2,119
Total sale consideration - 1,971
Less: Cash and cash equivalents of a subsidiary disposed - (7)
Cash inflow on disposal of shares in a subsidiary - 1,964
142
for the year ended 30 September OF CASH FLOWS
2023 (Continued)
D. Reconciliation of liabilities from financing activities to the consolidated statement of financial position and
consolidated statement of cash flows
Term Loans & Islamic

Lease Long Term Medium Short Term
Liabilities Borrowings Term Notes Borrowings Total
RM'000 RM'000 RM'000 RM'000 RM'000
At 1 October 2021 158,432 2,339,491 4,600,000 1,702,638 8,800,561

Cash flows
Drawdown of term loans - 1,055,033 - - 1,055,033
Issuance of Islamic medium term notes - - 2,000,000 - 2,000,000
Repayment of term loans - (1,425,468) - - (1,425,468)
Redemption of Islamic medium term
notes - - (1,000,000) - (1,000,000)
Net repayment of short term borrowings - - - (85,637) (85,637)
Payments of lease liabilities (18,239) - - - (18,239)
Payments of lease interest (5,569) - - - (5,569)
Non-cash flows
Addition of new leases 38,193 - - - 38,193
Remeasurement and modification
of leases (2) - - - (2)
Termination of leases (466) - - - (466)
Acquisition through business combination - 7,005 - - 7,005
Lease interest expense 5,672 - - - 5,672
Currency translation differences 2,815 9,695 - 9,237 21,747
At 30 September 2022 180,836 1,985,756 5,600,000 1,626,238 9,392,830
Cash flows
Drawdown of term loans - 238,240 - - 238,240
Repayment of term loans - (530,391) - - (530,391)
Net drawdown of short term borrowings - - - 773,843 773,843
Non-cash flows
Addition of new leases 25,800 - - - 25,800
Remeasurement and modification
of leases 2,580 - - - 2,580
Termination of leases (1,842) - - - (1,842)
Acquisition through business combination 1,836 47,682 - 1,667 51,185
Conversion of term loans to short term
borrowings - (24,701) - 24,701 -
Currency translation differences (4,026) 33,650 - 33,161 62,785
At 30 September 2023 181,129 1,750,236 5,600,000 2,459,610 9,990,975
143
STATEMENT OF CASH FLOWS OF THE COMPANY

STATEMENT OF CASH
for the year ended 30 September 2023 FLOWS OF THE COMPANY
2023 2022
RM'000 RM'000
Cash flows from operating activities
Profit before taxation 810,428 1,777,309
Adjustments for:
Depreciation of property, plant and equipment 74,023 68,719
Depreciation of right-of-use assets 32,965 22,582
Property, plant and equipment written off 1,366 119
Loss/(Gain) on disposal of property, plant and equipment 248 (358)
Surplus on government acquisition of land (42,218) (4,049)
Retirement benefits provision 9,407 12,388
Exchange (gain)/loss (28,873) 7,357
Net change in fair value of biological assets (4,467) 13,659
Net change in fair value of derivatives (2,650) (83,508)
Write down of inventories to net realisable value 28,067 11,701
Finance costs 278,276 277,054
Lease interest expense 5,429 4,252
Dividend income (724,266) (1,540,513)
Interest income (105,015) (91,106)
Reversal of impairment of investment in a subsidiary - (9,100)
Impairment of investment in a subsidiary 82,857 -
Employees' share grant scheme 5,830 5,859
Gain on redemption of preference shares (753) -
Operating profit before working capital changes 420,654 472,365
Working capital changes:
Inventories (23,513) (47,827)
Trade and other receivables (193,233) 84,295
Trade and other payables (44,664) (934,583)
Cash generated from/(used in) operations 159,244 (425,750)
Interest paid (277,751) (277,207)
Tax paid (34,930) (69,437)
Retirement benefits paid (4,311) (6,225)
Net cash used in operating activities (157,748) (778,619)
Cash flows from investing activities

Purchase of property, plant and equipment (141,223) (130,895)
Subscription of shares in subsidiaries (586,619) (716,834)
Subscription of shares in an associate (25) -
Purchase of other investments (104,053) -
Proceeds from disposal of property, plant and equipment 793 541
Compensation from government on land acquired 42,372 4,123
Redemption of redeemable preference shares by subsidiaries 40,226 106,624
Loan repayments from/(to) subsidiaries 480,407 (627,815)
Capital reduction of subsidiaries 7,276 19,798
Increase in short term funds (41,607) (16,220)
Dividends received from subsidiaries 711,991 1,477,693
Dividends received from associates 9,095 9,248
Dividends received from investments 2,352 45,668
Interest received 103,573 89,738
Net cash generated from investing activities 524,558 261,669
144

for the year ended 30 September 2023 (Continued)
2023 2022
RM'000 RM'000
Cash flows from financing activities
Issuance of Islamic medium term notes - 2,000,000
Redemption of Islamic medium term notes - (1,000,000)
Drawdown of short term borrowings 150,000 -
Dividends paid to shareholders of the Company (1,078,436) (1,078,156)
Payments of lease liabilities (28,526) (18,218)
Payments of lease interest (5,429) (4,252)
Net cash used in financing activities (962,391) (100,626)
Net decrease in cash and cash equivalents (595,581) (617,576)

Cash and cash equivalents at beginning of year 1,058,682 1,676,258
Cash and cash equivalents at end of year (Note A) 463,101 1,058,682
Notes to the statement of cash flows

A. Cash and cash equivalents
Cash and cash equivalents consist of:
Deposits with licensed banks (Note 30) 263,958 297,055
Money market funds (Note 30) 21,117 707,010
Cash and bank balances (Note 30) 178,026 54,617
463,101 1,058,682
B. Reconciliation of liabilities from financing activities to the statement of financial position and statement of cash
flows
Lease Islamic Medium Short Term

Liabilities Term Notes Term Loan Borrowings Total
RM'000 RM'000 RM'000 RM'000 RM'000
At 1 October 2021 115,942 4,600,000 1,200,000 - 5,915,942

Cash flows
Issuance of Islamic medium term notes - 2,000,000 - - 2,000,000
Redemption of Islamic medium term notes - (1,000,000) - - (1,000,000)
Non-cash flows
Remeasurement and modification of
leases 52,697 - - - 52,697
At 30 September 2022 150,421 5,600,000 1,200,000 - 6,950,421
Cash flows
Drawdown of short term borrowings - - - 150,000 150,000
Non-cash flows
Addition of new leases 247 - - - 247
Remeasurement and modification of
leases (61,228) - - - (61,228)
At 30 September 2023 60,914 5,600,000 1,200,000 150,000 7,010,914

145
NOTES TO THE FINANCIAL STATEMENTS

1. CORPORATE INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market
of the Bursa Malaysia Securities Berhad. The registered office and principal place of business is located at Wisma Taiko,
No. 1, Jalan S.P. Seenivasagam, 30000 Ipoh, Perak Darul Ridzuan.
The consolidated financial statements as at and for the year ended 30 September 2023 comprise the Company and its
subsidiaries (together referred to as the "Group" and individually referred to as "Group entities") and the Group's interest
in associates and joint ventures.
The Company is principally engaged in the business of producing and processing palm products and natural rubber on
its plantations while the principal activities of the Group entities are shown in Note 43 to the financial statements.
The Company is a subsidiary of Batu Kawan Berhad, a company incorporated in Malaysia and is listed on the Main
Market of the Bursa Malaysia Securities Berhad.
2. BASIS OF PREPARATION
2.1 Statement of compliance
The financial statements of the Group have been prepared in accordance with Malaysian Financial Reporting Standards
("MFRSs"), International Financial Reporting Standards (“IFRSs”) and the provisions of Companies Act 2016 in Malaysia.
These financial statements also comply with the applicable disclosure provisions of the Listing Requirements of the Bursa
Malaysia Securities Berhad.
The accounting policies adopted by the Group are consistent with those of the previous financial year except for the
adoption of the following Improvements to MFRS Standards and Amendments to the MFRSs, that were issued by the
Malaysian Accounting Standards Board ("MASB").
Title Effective date
Annual Improvements to MFRS Standards 2018 - 2020 1 January 2022
Reference to the Conceptual Framework (Amendments to MFRS 3 Business Combinations) 1 January 2022
Property, Plant and Equipment - Proceeds before Intended Use (Amendments to MFRS 116
Property, Plant and Equipment) 1 January 2022
Onerous Contracts - Cost of Fulfilling a Contract (Amendments to MFRS 137 Provisions,
Contingent Liabilities and Contingent Assets) 1 January 2022
The application of these Standards and Amendments to MFRSs has no significant effect to the financial statements of
the Group.
New MFRS and Amendments to MFRSs that have been issued by the MASB but have not been applied by the Group
are:
Title Effective date

MFRS 17 Insurance Contracts 1 January 2023
Amendments to MFRS 17 Insurance Contracts 1 January 2023
Initial Application of MFRS 17 and MFRS 9 - Comparative Information (Amendments to
MFRS 17 Insurance Contracts) 1 January 2023
Disclosure of Accounting Policies (Amendments to MFRS 101 Presentation of Financial Statements) 1 January 2023
Definition of Accounting Estimates (Amendments to MFRS 108 Accounting Policies, Changes in
Accounting Estimates and Errors) 1 January 2023
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments
to MFRS 112 Income Taxes) 1 January 2023
International Tax Reform - Pillar Two Model Rules (Amendments to MFRS 112 Income Taxes) Refer paragraph
98M of MFRS 112
Classification of Liabilities as Current or Non-current (Amendments to MFRS 101 Presentation
of Financial Statements) 1 January 2024
Lease Liability in a Sale and Leaseback (Amendments to MFRS 16 Leases) 1 January 2024
Non-current Liabilities with Covenants (Amendments to MFRS 101 Presentation of Financial
Statements) 1 January 2024
Supplier Finance Arrangements (Amendments to MFRS 107 Statement of Cash Flows and
MFRS 7 Financial Instruments: Disclosures) 1 January 2024
Lack of Exchangeability (Amendments to MFRS 121 The Effects of Changes in Foreign
Exchange Rates) 1 January 2025
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
(Amendments to MFRS 10 Consolidated Financial Statements and MFRS 128 Investments in
Associates and Joint Ventures) Deferred
The Group is in the process of assessing the impact of implementing these Standard and Amendments, since the effects
would only be observable for the future financial years.
146
NOTES TO TO
NOTES THE FINANCIAL STATEMENTS
THE FINANCIAL STATEMENTS (Continued)
2.2 Basis of measurement

The financial statements have been prepared under the historical cost basis other than as disclosed in Note 3.
2.3 Functional and presentation currency

These financial statements are presented in Ringgit Malaysia ("RM"), which is the Company's functional currency. All
financial information presented in RM has been rounded to the nearest thousand, unless otherwise stated.
2.4 Use of estimates and judgements

The preparation of financial statements in conformity with MFRSs requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and in any future periods affected.
There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have
significant effect on the amounts recognised in the financial statements other than those disclosed in Notes 12, 13, 16,
18, 19, 22, 23 and 43 for measurement of the recoverable amounts of property, plant and equipment, right-of-use assets,
goodwill on consolidation, cost of investment, other receivables, deferred tax assets and the determination of fair value
of identifiable assets acquired and liabilities assumed on business combination.
3. SIGNIFICANT ACCOUNTING POLICIES

Summarised below are the significant accounting policies of the Group. The accounting policies have been applied
consistently to the periods presented in these financial statements and have been applied consistently by Group entities,
unless otherwise stated.
3.1 Basis of consolidation

(a) Subsidiaries
Subsidiaries are entities, including structured entities, controlled by the Group. The financial statements of
subsidiaries are included in the consolidated financial statements from the date that control commences until the
date that control ceases.
The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity. Potential voting rights are considered
when assessing control only when such rights are substantive. The Group also considers it has de facto power
over an investee when, despite not having the majority of voting rights, it has the current ability to direct the activities
of the investee that significantly affect the investee's return.
Investments in subsidiaries, which are eliminated on consolidation, are measured in the Company's statement of
financial position at cost less any impairment losses, unless the investment is classified as held for sale or
distribution.
(b) Business combinations

The Group applies the acquisition method to account for business combinations when the acquired sets of activities
and assets meet the definition of a business from the acquisition date, which is the date on which control is
transferred to the Group. The Group determines that it has acquired a business when the acquired set of activities
and assets include an input and a substantive process that together significantly contribute to the ability to create
outputs. The acquisition would be classified as acquisition of assets if definition of business is not met. An entity
has an option to apply a "concentration test" that permits a simplified assessment of whether an acquired set of
activities and assets is not a business. Under the concentration test, the acquisition would not represent a business
if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group
of similar assets. An entity may elect to apply the concentration test separately for each transaction.
For new acquisitions, the Group measures the cost of goodwill at the acquisition date as:
 the fair value of the consideration transferred; plus
 the recognised amount of any non-controlling interests in the acquiree; plus
 if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree;
less
 the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
147
NOTES TO THE FINANCIAL STATEMENTS (Continued)

Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in
connection with a business combination are expensed as incurred.
For each business combination, the Group elects whether it measures the non-controlling interests in the acquiree
either at fair value or at the proportionate share of the acquiree's identifiable net assets at the acquisition date.
(c) Acquisitions of non-controlling interests

The Group accounts for all changes in its ownership interest in a subsidiary that do not result in a loss of control as
equity transactions between the Group and its non-controlling interest holders. Any difference between the Group's
share of net assets before and after the change, and any consideration received or paid, is adjusted to or against
Group reserves.
(d) Goodwill
Goodwill arises on business combinations is measured at cost less any accumulated impairment losses.
Goodwill is tested for impairment at least annually or more frequently when there is objective evidence of
impairment.
In respect of equity accounted associates and joint ventures, the carrying amount of goodwill is included in the
carrying amount of the investment and an impairment loss on such an investment is not allocated to any asset,
including goodwill, that forms part of the carrying amount of the equity accounted associates and joint ventures.
(e) Loss of control

Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the former subsidiary,
any non-controlling interests and the other components of equity related to the former subsidiary from the
consolidated statement of financial position. Any surplus or deficit arising on the loss of control is recognised in
profit or loss. If the Group retains any interest in the former subsidiary, then such interest is measured at fair value
at the date that control is lost. Subsequently, it is accounted for as an equity accounted investee or as an investment
in financial asset depending on the level of influence retained.
(f) Associates
Associates are entities, including unincorporated entities, in which the Group has significant influence, but not
control, over the financial and operating policies.
Investments in associates are accounted for in the consolidated financial statements using the equity method,
unless it is classified as held for sale or distribution. The consolidated financial statements include the Group’s
share of the profit or loss and other comprehensive income of the associates, after adjustments if any, to align the
accounting policies with those of the Group, from the date that significant influence commences until the date that
significant influence ceases.
The Group’s share of post-acquisition results and reserves of associates is included in the consolidated financial
statements and is based on the latest audited and published interim reports in respect of listed companies and latest
audited financial statements and unaudited management financial statements in respect of unlisted companies.
When the Group's share of losses exceeds its interest in an associate, the carrying amount of that interest including
any long term investments is reduced to zero, and the recognition of further losses is discontinued except to the
extent that the Group has an obligation or has made payments on behalf of the associate.
When the Group ceases to have significant influence over an associate, any retained interest in the former associate
at the date when significant influence is lost is measured at fair value and this amount is regarded as the initial
carrying amount of a financial asset. The difference between the fair value of any retained interest plus proceeds
from the interest disposed of and the carrying amount of the investment at the date when equity method is
discontinued is recognised in profit or loss.
When the Group's interest in an associate decreases but does not result in a loss of significant influence, any
retained interest is not remeasured. Any gain or loss arising from the decrease in interest is recognised in profit or
loss. Any gains or losses previously recognised in other comprehensive income are also reclassified proportionately
to profit or loss if that gain or loss would be required to be reclassified to profit or loss on the disposal of the related
assets or liabilities.
Investments in associates are measured in the Company's statement of financial position at cost less any
impairment losses, unless the investment is classified as held for sale or distribution.
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(g) Joint ventures

Joint ventures are arrangements of which the Group has joint control, established by contracts requiring unanimous
consent for decisions about the activities that significantly affect the arrangements' returns and the Group has rights
only to the net assets of the arrangements.
The Group accounts for its interest in the joint ventures using the equity method. Investments in joint ventures are
measured in the Company's statement of financial position at cost less any impairment losses, unless the
investment is classified as held for sale or distribution.
(h) Non-controlling interests

Non-controlling interests at the end of the reporting period, being the equity in a subsidiary not attributable directly
or indirectly to the equity holders of the Company, are presented in the consolidated statement of financial position
and statement of changes in equity within equity, separately from equity attributable to the owners of the Company.
Non-controlling interests in the results of the Group are presented in the consolidated statement of profit or loss and
other comprehensive income as an allocation of the profit or loss and the comprehensive income for the year
between non-controlling interests and owners of the Company.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even
if doing so causes the non-controlling interests to have a deficit balance.
(i) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements.
Unrealised gains arising from transactions with equity accounted associates and joint ventures are eliminated
against the investment to the extent of the Group's interest in the investees. Unrealised losses are eliminated in
the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
3.2 Foreign currency

(a) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at
exchange rates at the dates of transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are retranslated
to the functional currency at the exchange rates at that date. Non-monetary assets and liabilities denominated in
foreign currencies are not retranslated at the end of the reporting period, except for those that are measured at fair
value are retranslated to the functional currency at the exchange rates at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising
on the retranslation of equity instruments which are recognised in other comprehensive income.
In the consolidated financial statements, when settlement of a monetary item receivable from or payable to a foreign
operation is neither planned nor likely to occur in the foreseeable future, foreign exchange gains and losses arising
from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised
in other comprehensive income, and are presented in the Exchange Fluctuation Reserve in equity.
(b) Operations denominated in functional currencies other than RM

The assets and liabilities of operations denominated in functional currencies other than RM, including goodwill and
fair value adjustments arising on acquisition, are translated to RM at exchange rates at the end of the reporting
period, except for goodwill and fair value adjustments arising from business combinations before 1 October 2006
which are reported using the exchange rates at the dates of acquisitions. The income and expenses of the foreign
operations are translated to RM at the average exchange rates for the year.
Foreign currency differences are recognised in other comprehensive income and accumulated in the Exchange
Fluctuation Reserve in equity. However, if the operation is a non-wholly owned subsidiary, then the relevant
proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign
operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the
Exchange Fluctuation Reserve related to that foreign operation is reclassified to profit or loss as part of the gain or
loss on disposal.
When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation, the relevant
proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only
part of its investment in an associate or a joint venture that includes a foreign operation while retaining significant
influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.
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3.3 Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation/amortisation and any
accumulated impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly
attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the
items and restoring the site on which they are located. The cost of self-constructed assets also includes the cost of
materials and direct labour. For qualifying assets, borrowing costs are capitalised in accordance with the accounting
policy on borrowing costs. Purchased software that is integral to the functionality of the related equipment is capitalised
as part of that equipment.
When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of
the item if it is probable that the future economic benefits embodied within the component will flow to the Group, and its
cost can be measured reliably. The carrying amount of the replaced component is derecognised to profit or loss. The
costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
Capital work-in-progress mainly comprised of building and plant that are in the process of construction or completion.
Bearer plants are living plants that are used in the production or supply of agricultural produce, which are expected to
bear produce for more than one period and have remote likelihood of being sold as agricultural produce, except for
incidental scrap sales. Costs include plantation expenditures incurred from the stage of land clearing up to the stage of
maturity. New planting expenditure and replanting expenditure are recognised as bearer plants and measured at cost
less accumulated amortisation and accumulated impairment losses, if any.
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are
assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is
depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of
an item of property, plant and equipment from the date that they are available for use. Bearer plants are amortised using
the straight-line method over the estimated productive years. Freehold land has unlimited useful life and is not amortised.
Immature bearer plants and capital work-in-progress are not amortised or depreciated. Amortisation or depreciation
commences when the bearer plants mature or when the capital work-in-progress assets are ready for their intended use.
The principal depreciation/amortisation rates for the current and comparative periods are as follows:
Bearer plants - 5% per annum

Buildings - 2% to 40% per annum
Plant and machinery - 2% to 33.33% per annum
Vehicles - 6.67% to 33% per annum
Equipment, fittings, etc. - 5% to 33.33% per annum
Depreciation methods, useful lives and residual values are reviewed at end of the reporting period and adjusted as
appropriate.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment and is recognised net within "other operating income"
or "other operating expenses" respectively in profit or loss.
3.4 Leases
(a) Lease as Lessee
Right-of-use assets and lease liabilities
The Group accounts for a contract, or a portion of a contract, as a lease when it conveys the right-of-use to use an
asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria:
(i) there is an identified asset;
(ii) the Group obtains substantially all the economic benefits from use of the asset; and
(iii) the Group has the right to direct use of the asset.
The Group considers whether the supplier has substantive substitution rights. If the supplier does have those rights,
the contract is not identified as giving rise to a lease.
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In determining whether the Group obtains substantially all the economic benefits from use of the asset, the Group
considers only the economic benefits that result from the use of the asset.
In determining whether the Group has the right to direct use of the asset, the Group considers whether it directs
how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be
made because they are pre-determined due to the nature of the asset, the Group considers whether it was involved
in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout
the period of use. If the contract or portion of a contract does not satisfy these criteria, the Group applies other
applicable MFRSs rather than MFRS 16.
In determining the lease term, the Group considers all facts and circumstances that create an economic incentive
to exercise an extension option, or not to exercise a termination option. Extension options (or periods after
termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not to
be terminated).
The Group reassesses the lease term upon the occurrence of a significant event or change in circumstances that
is within the control of the Group and affects whether the Group is reasonably certain to exercise an option not
previously included in the determination of lease term, or not to exercise an option previously included in the
determination of lease term. A revision in the lease term results in a remeasurement of lease liabilities.
All leases are accounted for by recognising right-of-use assets and lease liabilities except for:
(i) leases of low value assets; and
(ii) leases with a duration of 12 months or less.
Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease
term, with the discount rate determined by reference to the rate implicit in the lease unless (as is typically the case)
this is not readily determinable, in which case the Group’s incremental borrowing rate on commencement of the
lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend
on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will
remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which
they relate.
On initial recognition, the carrying value of the lease liability also includes:
(i) amounts expected to be payable under any residual value guarantee;
(ii) the exercise price of any purchase option granted in favour of the Group if it is reasonably certain to exercise
that option; and
(iii) any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of
termination option being exercised.
Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives
received, and increased for:
(i) lease payments made at or before commencement of the lease;
(ii) initial direct costs incurred; and
(iii) the amount of any provision recognised where the Group is contractually required to dismantle, remove or
restore the leased asset.
Subsequent to initial measurement, lease liabilities increase as a result of interest charged at a constant rate on
the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on a
straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if, rarely,
this is judged to be shorter than the lease term.
When the Group revises its estimate of the term of any lease (because, for example, it reassesses the probability
of a lessee extension or termination option being exercised), it adjusts the carrying amount of the lease liability to
reflect the payments to make over the revised term, which are discounted at the revised discount rate which is the
interest rate implicit in the lease for the remaining lease term, if the rate can be readily determined, or the lessee’s
incremental borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily
determined. The carrying value of the lease liability is similarly revised when the variable element of future lease
payments dependent on a rate or index is revised. In both cases an equivalent adjustment is made to the carrying
value of the right-of-use asset, with the revised carrying amount being amortised over the remaining revised lease
term.
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When the Group renegotiates the contractual terms of a lease with the lessor, the accounting depends on the nature
of the modification:
(i) if the renegotiation results in one or more additional assets being leased for an amount commensurate with
the standalone price for the additional right-of-use obtained, the modification is accounted for as a separate
lease in accordance with the above policy;
(ii) in all other cases where the renegotiation increases the scope of the lease (whether that is an extension to
the lease term, or one or more additional assets being leased), the lease liability is remeasured using the
discount rate applicable on the modification date, with the right-of-use asset being adjusted by the same
amount; and
(iii) if the renegotiation results in a decrease in the scope of the lease, both the carrying amount of the lease liability
and right-of-use asset are reduced by the same proportion to reflect the partial or full termination of the lease
with any difference recognised in profit or loss. The lease liability is then further adjusted to ensure its carrying
amount reflects the amount of the renegotiated payments over the renegotiated term, with the modified lease
payments discounted at the rate applicable on the modification date. The right-of-use asset is adjusted by the
same amount.
For contracts that both convey a right to the Group to use an identified asset and require services to be provided to
the Group by the lessor, the Group has elected to account for the entire contract as a lease, i.e. it does not allocate
any amount of the contractual payments to, and account separately for, any services provided by the supplier as
part of the contract.
Right-of-use assets are amortised on a straight-line basis over the shorter of the lease terms and their useful life.
Depreciation periods for the current and comparative periods are as follows:
Leasehold land - 4 to 931 years

Land use rights - 4 to 99 years
Building - 1 to 30 years
Plant and machinery - 1 to 10 years
Others - 2 to 5 years
(b) Lease as Lessor

As a lessor, the Group determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of
the risks and rewards incidental to ownership of the underlying asset to the lessee. As part of this assessment, the
Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.
Operating leases
The Group classified a lease as an operating lease if the lease does not transfer substantially all the risks and
rewards incidental to ownership of an underlying asset to the lessee. The Group recognises lease payments
received under operating lease as lease income on a straight-line-basis over the lease term.
When assets are leased out under an operating lease, the asset is included in property, plant and equipment and
right-of-use assets in the statement of financial position. Lease income (net of any incentives given to lessees) is
recognised over the term of the lease on a straight line basis.
3.5 Investment properties

Investment property, which is property held to earn rentals or for capital appreciation or both, is initially measured at cost,
including transaction costs and borrowing costs if the investment properties meet the definition of qualifying asset.
Subsequent to initial recognition, investment property is stated at cost less accumulated depreciation and any
accumulated impairment losses.
Investment property is derecognised when either they have been disposed of or when the investment property is
permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the
retirement or disposal of an investment property is recognised in profit or loss in the year of retirement or disposal.
Transfers are made to or from investment property only when there is a change in use. A transfer from investment property
to owner-occupied property is made at the carrying amount as at the date of change in use. For a transfer from owner-
occupied property to investment property, the property is accounted for in accordance with the accounting policy for
property, plant and equipment set out in Note 3.3 up to the date of change in use.
Freehold land and buildings under construction are not depreciated. Other investment properties are depreciated on a
straight-line basis to write down the cost of each asset to their residual values over their estimated useful lives.
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3.6 Biological assets

(a) Agriculture produce
The agriculture produce growing on bearer plants of the Group comprises fresh fruit bunches ("FFB") prior to harvest
and are measured at fair value less costs to sell under biological assets. Any gains or losses arising from changes
in fair value less costs to sell of the produce are recognised within cost of sales in profit or loss.
Management has deliberated on the oil content of such unharvested FFB and concluded that since the oil content
of unharvested FFB accrues exponentially only from 15 days prior to harvest, such unharvested FFB more than 15
days prior to harvest are excluded from valuation as their fair values are considered negligible. Therefore, quantity
of unharvested FFB up to 15 days prior to harvest is used for valuation purpose. The fair value of unharvested FFB
is determined based on market approach, which takes into consideration the market prices of FFB and crude palm
oil, where appropriate, adjusted to the estimated oil content of unharvested FFB, less harvesting, transport and
other costs to sell.
(b) Growing crops and livestock

Growing crops are measured at fair value which is based on the costs incurred to the end of the reporting period
for these crops. As at the end of the reporting period, the yield of the crops and the future economic benefits which
will flow from the crops are not fully determinable and costs incurred in relation to the crops are considered to be
reasonable approximation of fair value at the date.
Livestock is measured at fair value less point-of-sale cost, with any change therein recognised in profit or loss. Fair
value is based on the market price of livestock of similar age, breed and genetic make-up. Point-of-sale costs
include all costs that would be necessary to sell the livestock.
3.7 Financial assets

Financial assets are recognised in the statements of financial position when, and only when, the Group becomes a party
to the contractual provisions of the instrument.
Financial assets are recognised initially at their fair values plus, in the case of financial assets not at fair value through
profit or loss, transaction costs that are directly attributable to the acquisition of the financial assets.
The Group categorises financial assets as follows:
(a) Financial assets at fair value through profit or loss

Fair value through profit or loss category comprises financial assets that are held for trading, including derivatives
(except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument),
contingent consideration in a business combination or financial assets that are specifically designated into this
category upon initial recognition.
Financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with
the gain or loss recognised in profit or loss.
(b) Financial assets at fair value through other comprehensive income ("FVOCI")
Financial assets at FVOCI category comprises investments in equity securities instruments that are not held for
trading.
Financial assets measured at FVOCI are subsequently measured at fair values with the gain or loss recognised in
other comprehensive income. On derecognition, the cumulative gain or loss recognised in other comprehensive
income is not subsequently transferred to profit or loss.
(c) Financial assets at amortised cost

Financial assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised
cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when
the assets are derecognised or impaired, and through amortisation process.
All financial assets, except for those measured at fair value through profit or loss and those measured at FVOCI, are
subject to review for impairment (Note 3.13(a)).
A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require delivery
of the asset within the time frame established generally by regulation or convention in the market place concerned.
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A regular way purchase or sale of financial assets is recognised and derecognised, as applicable, using trade date
accounting. Trade date accounting refers to:
(a) the recognition of an asset to be received and the liability to pay for it on the trade date; and
(b) derecognition of an asset that is sold, recognition of any gain or loss on disposal and the recognition of a receivable
from the buyer for payment on the trade date.
A financial asset or part of it is derecognised when, and only when, the contractual rights to the cash flows from the
financial asset expire or control of the asset is not retained or substantially all of the risks and rewards of ownership of
the financial asset are transferred to another party. On derecognition of a financial asset, the difference between the
carrying amount and the sum of the consideration received (including any new asset obtained less any new liability
assumed) is recognised in profit or loss.
3.8 Embedded derivatives

An embedded derivative is recognised separately from the host contract and accounted for as a derivative if, and only if,
it is not closely related to the economic characteristics and risks of the host contract and the host contract is not
categorised as fair value through profit or loss. The host contract, in the event an embedded derivative is recognised
separately, is accounted for in accordance with policy applicable to the nature of the host contract.
3.9 Intangible assets

These assets consist mainly of trade marks, patents, technology related assets and customer lists which are stated at
cost less accumulated amortisation and any accumulated impairment losses. Subsequent expenditure is capitalised only
when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is
recognised in profit or loss as incurred.
Intangible assets are amortised from the date that they are available for use. Amortisation is based on the cost of an
asset less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful
lives of intangible assets.
The estimated useful lives for the current and comparative periods are as follows:
Trademarks - 6 to 15 years
Patents - 6 to 20 years
Technology related assets - 5 years
Customer lists - 15 to 20 years
Amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted, if
appropriate.
3.10 Inventories
(a) Land held for property development
Land held for property development shall be classified as non-current asset where no development activities have
been carried out or where development activities are not expected to be completed within the normal operating
cycle.
The change in the classification of land held for property development to current assets shall be at the point when
development activities have commenced and where it can be demonstrated that the development activities can be
completed within the normal operating cycle.
Costs associated with the acquisition of land include the purchase price of the land, professional fees, stamp duties,
commissions, conversion fees and other relevant levies.
Land held for property development is measured at the lower of cost and net realisable value.
(b) Property development costs

Property development costs comprise costs associated with the acquisition of land and all costs that are directly
attributable to development activities or that can be allocated on a reasonable basis to such activities.
Property development costs are stated in the statement of financial position at the lower of cost and net realisable
value.
The excess of revenue recognised in the statement of profit or loss and other comprehensive income over billings
to purchasers is shown as accrued billings and the excess of billings to purchasers over revenue recognised in the
statement of profit or loss and other comprehensive income is shown as progress billings.
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(c) Developed properties held for sale, inventories of produce, stores and materials and nursery
Inventories of developed properties held for sale are stated at the lower of costs and net realisable value. Costs
consist of costs associated with the acquisition of land, direct costs and appropriate proportions of common costs
attributable to developing the properties to completion.
Inventories of produce, stores and materials are measured at the lower of cost and net realisable value. Cost is
determined on a weighted average basis and includes expenditure incurred in acquiring these inventories,
production or conversion costs and other costs incurred in bringing them to their existing location and condition.
Inventories of nursery consist of seedlings remaining in the nursery for eventual field planting and are stated at the
lower of costs and net realisable value. Cost of seeds and seedlings includes the cost of treatment and cultivation.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make the sale.
3.11 Short term funds

Short term funds represent funds placed in highly liquid money market instruments which are readily convertible to known
amount of cash and have an insignificant risk of changes in fair value with original maturities of more than three months.
3.12 Cash and cash equivalents

Cash and cash equivalents consist of cash in hand, balances and deposits with banks and money market funds which
are readily convertible to known amount of cash and have an insignificant risk of changes in fair value with original
maturities of three months or less, and are used by the Group in the management of its short term commitments. For the
purpose of the statement of cash flows, cash and cash equivalents are presented net of bank overdrafts and pledged
deposits, if any.
3.13 Impairment
(a) Financial assets
The Group recognises an allowance for expected credit loss ("ECL") for all debt financial assets not held at fair
value through profit or loss. ECL is based on the difference between the contractual cash flows due in accordance
with the contracts and all the cash flows that the Group expects to receive. The estimate of expected cash shortfall
shall reflect the cash flows expected from collateral and other credit enhancements that are part of the contractual
terms. The shortfall is then discounted at an approximation to the original effective interest rate of the assets.
Impairment losses for trade receivables and contract assets that do not contain a significant financing component
are recognised based on the simplified approach within MFRS 9 using the lifetime ECL. During this process, the
probability of non-payment by the trade receivables is adjusted by forward looking information and multiplied by the
amount of the expected loss arising from default to determine the lifetime ECL for the trade receivables.
The Group considers available, reasonable and supportive forward-looking information which includes the following
indicators:
 Internal credit rating/assessment
 External credit rating/assessment (where available)
 Actual or expected significant changes in the operating results of the debtor (where available)
 Actual or expected significant adverse changes in business, financial or economic conditions that are expected
to cause a significant change to the debtor’s ability to meet its obligation
 Significant increase in credit risk on other financial instruments of the same debtor
 Significant changes in the expected performance and behaviour of the debtor, including changes in the payment
status of debtors in the group and changes in the operating results of the debtor
Impairment for other receivables, financial guarantee contracts, amounts owing by subsidiaries and joint ventures
are recognised based on the general approach within MFRS 9 using ECL model. The methodology used to
determine the amount of the impairment is based on whether there has been a significant increase in credit risk
since initial recognition of the financial asset. At the end of the reporting period, the Group assesses whether there
has been a significant increase in credit risk for financial assets by comparing the risk of default occurring over the
expected life with the risk of default since initial recognition. For those in which credit risk has not increased
significantly since initial recognition of the financial asset, 12-month ECL along with gross interest income are
recognised. For those in which credit risk has increased significantly, lifetime ECL along with the gross interest
income are recognised. For those that are determined to be credit impaired, lifetime ECL along with interest income
on a net basis are recognised.
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The Group defined significant increase in credit risk based on operating performance of the receivables, changes
to contractual terms, payment delays more than 30 days past due in making contractual payments and past due
information.
The probabilities of non-payments by other receivables, financial guarantee contracts, amounts owing by
subsidiaries and joint ventures are adjusted by forward looking information and multiplied by the amounts of the
expected losses arising from defaults to determine the 12-month or lifetime ECL for the other receivables, financial
guarantee contracts, amounts owing by subsidiaries and joint ventures.
It requires management to exercise significant judgement in determining the probabilities of default by other
receivables, financial guarantee contracts, amounts owing by subsidiaries and joint ventures, appropriate forward
looking information and significant increase in credit risk.
A current fair value of an investment that is less than its carrying amount may indicate a loss in value of the
investment. However, a decline in the quoted market price below the carrying amount or the existence of operating
losses is not necessarily indicative of a loss in value that is other than temporary. Management will evaluate all
factors to determine if it is a loss in value that is other than temporary.
(b) Other assets

The carrying amounts of other assets (other than inventories, biological assets and deferred tax assets) are
reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such
indication exists, then the asset's recoverable amount is estimated. For goodwill and intangible assets that have
indefinite useful lives or that are not yet available for use, the recoverable amount is estimated each period at the
same time.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates
cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating
units. Subject to an operating segment ceiling test, for the purpose of goodwill impairment testing, cash-generating
units to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed
reflects the lowest level at which goodwill is monitored for internal reporting purposes. The goodwill acquired in a
business combination, for the purpose of impairment testing, is allocated to a cash-generating unit or a group of
cash-generating units that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or cash-generating unit is the greater of its value-in-use and its fair value less
costs of disposal. In assessing value-in-use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset or cash-generating unit.
An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit exceeds its
estimated recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating
units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (group
of cash-generating units) and then to reduce the carrying amounts of the other assets in the cash-generating unit
(groups of cash-generating units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised
in prior periods are assessed at the end of each reporting period for any indications that the loss has decreased or
no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only to the
extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are
credited to profit or loss in the financial year in which the reversals are recognised.
3.14 Financial liabilities

Financial liabilities are recognised in the statements of financial position when, and only when, the Group becomes a
party to the contractual provisions of the instrument.
Financial liabilities are recognised initially at their fair values plus, in the case of financial liabilities not at fair value through
profit or loss, transaction costs that are directly attributable to the issue of the financial liabilities.
All financial liabilities are subsequently measured at amortised cost other than those categorised as fair value through
profit or loss.
Fair value through profit or loss category comprises financial liabilities that are derivatives (except for a derivative that is
a financial guarantee contract or a designated and effective hedging instrument), contingent consideration in a business
combination or financial liabilities that are specifically designated into this category upon initial recognition.
Financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair values with the
gain or loss recognised in profit or loss.
156

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse
the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the term
of a debt instrument.
Financial guarantee contracts are recognised as financial liabilities at the time the guarantees are issued. The liability is
initially measured at fair value and subsequently at the higher of the amount determined in accordance with the expected
credit loss model under MFRS 9 and the amount initially recognised less cumulative amortisation, where appropriate.
The fair value of financial guarantee is determined based on the present value of the difference in cash flows between
the contractual payments required under the debt instrument and the payments that would be required without the
guarantee, or the estimated amount that would be payable to a third party for assuming the obligations.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is
discharged, cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of
the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognised in profit or loss.
3.15 Income tax

Income tax expense comprises current and deferred tax. Income tax also includes other taxes, such as withholding
taxes, which are payable by foreign subsidiaries, associates or joint venture on distributions to the Group and the
Company. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business
combination or items recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted
or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous
financial years.
Deferred tax is recognised using the liability method, providing for temporary differences between the carrying amounts
of assets and liabilities in the statements of financial position and their tax bases. Deferred tax is not recognised for the
following temporary differences: the initial recognition of goodwill, the initial recognition of assets or liabilities in a
transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. The amount
of deferred tax recognised is measured based on the expected manner of realisation or settlement of the carrying amount
of the assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. Deferred tax assets
and liabilities are not discounted.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,
and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but they intend to settle current tax assets and liabilities on a net basis or their tax assets and liabilities will be realised
simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which
the temporary difference can be utilised. Deferred tax assets are reviewed at the end of each reporting period and are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
3.16 Employee benefits

(a) Defined contribution plans
Obligations for contributions to defined contribution plans are recognised as an expense in profit or loss as incurred.
Once the contributions have been paid, the Group has no further payment obligations.
(b) Unfunded defined benefit plans

(i) The Group provides for retirement benefits for eligible employees in Malaysia on unfunded defined benefit
basis in accordance with the terms of the unions' collective agreements. Full provision has been made for
retirement benefits payable to all eligible employees based on the last drawn salaries at the end of the reporting
period, the length of service to date and the rates set out in the said agreements.
The present value of these unfunded defined benefit obligations as required by MFRS 119 Employee Benefits
has not been used in arriving at the provision, as the amount involved is insignificant to the Group. Accordingly,
no further disclosure as required by the standard is made.
(ii) Subsidiaries in Indonesia provide for retirement benefits for eligible employees on unfunded defined benefit
basis in accordance with the Labour Law in Indonesia. The obligations of the defined benefit plans are
calculated as the present values of obligations at end of the reporting period using the projected unit credit
method which is based on the last drawn salaries at the end of the reporting period, age and the length of
service.
157

Service and interest costs are recognised in profit or loss. Remeasurements of the defined benefit plans which
comprise actuarial gains and losses are recognised in other comprehensive income in the year in which they
occur.
(iii) Subsidiaries in Germany and Italy provides for retirement benefits for its eligible employees on unfunded
defined benefit basis. The obligations of the defined benefit plans are determined annually by an independent
qualified actuary. The discount rate is determined using the yield of first class corporate bonds at the valuation
date and in the same currency in which the benefits are expected to be paid.
Service and interest costs are recognised immediately in profit or loss. Remeasurements of the defined benefit
plans which comprise actuarial gains and losses are recognised in other comprehensive income.
(c) Funded defined benefit plan

The subsidiaries in Switzerland operate a funded defined benefit pension scheme for employees. The assets of
the scheme are held separately from those of the subsidiary.
The calculation of the funded defined benefit obligations is performed annually by a qualified actuary using the
projected unit credit method. When the calculation results in a potential asset for the Group, the recognised asset
is limited to the present value of economic benefits available in the form of any future refunds from the plan or
reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is
given to any applicable minimum funding requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan
assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately
in other comprehensive income. The Group determines the net interest expense or income on the net defined
liability or asset for the period by applying the discount rate used to measure the defined benefit obligation at the
beginning of the annual period to the then net defined benefit liability or asset, taking into account any changes in
the net defined benefit liability or asset during the period as a result of contributions and benefit payments.
Net interest expense and other expenses relating to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to
past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Group recognises
gains and losses on the settlement of a defined benefit plan when the settlement occurs.
(d) Short term employee benefits

Short term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave
are measured on an undiscounted basis and are expensed as the related service is provided.
3.17 Equity instruments

Instruments classified as equity are measured at cost on initial recognition and are not remeasured subsequently.
(a) Ordinary shares

Ordinary shares are classified as equity.
(b) Treasury shares

When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly
attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares that are
not subsequently cancelled are classified as treasury shares in the statement of changes in equity.
When treasury shares are sold or reissued subsequently, the difference between the sales consideration net of
directly attributable costs and the carrying amount of the treasury shares is recognised in equity.
3.18 Contingent liabilities

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably,
the obligation is not recognised in the statements of financial position and is disclosed as a contingent liability, unless the
probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by
the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the
probability of outflow of economic benefits is remote.
158
3.19 Revenue and other income

(a) Revenue from contracts with customers
Revenue from contracts with customers is recognised by reference to each distinct performance obligation promised
in the contract with customer when or as the Group transfers control of the goods or services promised in a contract
and the customer obtains control of the goods or services. Revenue from contracts with customers is measured at
its transaction price, being the amount of consideration to which the Group expects to be entitled in exchange for
transferring goods or services promised in the contract. Depending on the terms of the contract, revenue is
recognised when the performance obligation is satisfied, which may be at a point in time or over time.
(i) Sale of goods

The Group’s revenue is derived mainly from its plantation and manufacturing operations. In the plantation
operations, the Group sells agricultural produce such as crude palm oil, fresh fruit bunches, palm kernel, rubber,
etc. In the manufacturing operations, revenue is derived mainly from sales of oleochemicals, non-
oleochemicals products and refined palm oil related products.
Revenue from sales of goods are recognised (net of discount and taxes collected on behalf) at the point in time
when control of the goods has been transferred to the customer. Depending on the terms of the contract with
the customer, control transfers either upon delivery of the goods to a location specified by the customer and
acceptance of the goods by the customer, or upon delivery of the goods on board vessels or tankers for onward
delivery to the customers.
Contracts where control of goods transfer to the customer upon delivery of the goods on board vessels or
tankers are often bundled with freight services. In such contracts, sale of goods and provision of freight are
accounted for as separate performance obligations as the customer can benefit from the sale of goods and
shipping services on its own or with the use of other resources. The transaction price is allocated to each
performance obligation based on the stand-alone selling prices of the goods and services.
The Group has taken advantage of the practical expedient not to account for significant financial components
where the time difference between receiving consideration and transferring control of promised goods or
services to the customer is one year or less.
(ii) Property development

Contracts with customers may include multiple promises to customers and are therefore accounted for as
separate performance obligations. In this case, the transaction price will be allocated to each separate
performance obligation based on the stand-alone selling prices. When these are not directly observable, they
are estimated based on expected cost plus margin.
The revenue from property development is measured at the fixed transaction price agreed under sale and
purchase agreement (“SPA”). When the Group determines that it is not probable that the Group will collect the
consideration to which the Group is entitled to in exchange for the properties, the Group will defer the
recognition of revenue from such sales of properties and consideration received from the customer is
recognised as contract liability. For such properties, the Group recognises revenue when it becomes probable
that the Group will collect consideration to which it will be entitled to in exchange for the properties sold.
Revenue from property development is recognised as and when the control of the asset is transferred to the
customer. Depending on the terms of the contract and the laws that apply to the contract, control of the asset
may transfer over time or at a point in time. Control of the asset is transferred over time if the Group’s
performance does not create an asset with an alternative use to the Group and the Group has an enforceable
right to payment for work performance completed todate.
The promised properties are specifically identified by its plot, lot and parcel number and its attributes (such as
size and location) as attached in its layout plan in the SPA. The purchasers could enforce its rights to the
promised properties if the Group seeks to sell the unit to another purchaser. The contractual restriction on the
Group’s ability to direct the promised properties for another use is substantive and therefore the promised
properties sold to the purchasers do not have an alternative use to the Group. The Group has the right to
payment for performance completed todate, is entitled to continue to transfer to the customer the development
units promised, and has the right to complete the construction of the properties and enforce its rights to full
payment.
If control of the asset transfers over time, revenue is recognised over the period of the contract by reference to
the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognised
at a point in time when the customer obtains control of the asset.
The Group recognises revenue over time using the input method, which is based on the contract costs incurred
todate to the estimated total costs for the contract.
159

For sale of completed properties, the Group recognises revenue when the control of the properties has been
transferred to the purchasers, being when the properties have been handed over to the purchasers (i.e. upon
delivery of vacant possession).
(iii) Rendering of services

Revenue from services rendered is recognised in profit or loss when the services are rendered.
(b) Other revenue

(i) Dividend income
Dividend income is recognised in profit or loss on the date that the Group's right to receive payment is
established.
(ii) Interest income

Interest income is recognised as it accrues using the effective interest method in profit or loss except for interest
income arising from temporary investment of borrowings taken specifically for the purpose of obtaining a
qualifying asset which is accounted for in accordance with the accounting policy on borrowing costs.
(iii) Rental income

Rental income is recognised based on the accruals basis.
(iv) Government grants

Government grants are recognised initially as deferred income at fair value when there is reasonable assurance
that they will be received and that the Group will comply with the conditions associated with the grant; they are
then recognised in profit or loss as other operating income on a systematic basis over the useful life of the
asset.
Grants that compensate the Group for expenses incurred are recognised in profit or loss as other operating
income on a systematic basis in the same periods in which the expenses are recognised.
In the case of the Group, revenue comprises sales to third parties only.
3.20 Research and development expenditure

All general research and development expenditure is recognised in profit or loss in the year in which the expenditure is
incurred except where a clearly-defined project is undertaken and it is probable that the development expenditure will
give rise to future economic benefits. Such development expenditure is capitalised and amortised on a straight-line basis
over the life of the project from the date of commencement of full scale commercial business operations.
3.21 Borrowing costs

Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are
recognised in profit or loss using the effective interest method.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalised as part of the
cost of those assets.
The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset
is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended
use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities
necessary to prepare the qualifying asset for its intended use or sale are interrupted or completed.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.
3.22 Earnings per share

The Group presents basic earnings per share data for its shares.
Basic earnings per share is calculated by dividing the profit or loss attributable to the equity holders of the Company by
the weighted average number of shares in issue during the year.
Diluted earnings per share, if any, is calculated by dividing the profit or loss attributable to the equity holders of the
Company by the weighted average number of shares in issue during the year adjusted for the effects of dilutive potential
ordinary shares.
160
3.23 Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenue
and incur expenses, including revenue and expenses that relate to transactions with any of the Group's other components.
Operating segment results are reviewed regularly by the chief operating decision maker, which in this case is the Chief
Executive Officer of the Group, to make decisions about resources to be allocated to the segment and to assess its
performance, and for which discrete financial information is available.
3.24 Fair value measurements

Fair value of an asset or a liability, except for lease transactions, is determined as the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal
market or in the absence of a principal market, in the most advantageous market.
The Group measures the fair value of an asset or a liability by taking into account the characteristics of the asset or
liability if market participants would take these characteristics into account when pricing the asset or liability. The Group
has considered the following characteristics when determining fair value:
(a) the condition and location of the asset; and
(b) restrictions, if any, on the sale or use of the asset.
For non-financial asset, the fair value measurement takes into account a market participant's ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the
asset in its highest and best use.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair
value is categorised into different levels in a fair value hierarchy based on the input used in the valuation technique as
follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the
measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly
Level 3: Unobservable inputs for the asset or liability
The Group recognises transfers between levels of the fair value hierarchy as of the date of the event or change in
circumstances that caused the transfers.
4. REVENUE
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Revenue from contracts with customers
Sale of goods
Palm products 3,372,972 4,000,758 1,165,443 1,456,452
Rubber 48,352 81,608 50,970 81,608
Manufacturing 19,631,852 22,558,327 - -
Others 188,487 164,343 - -
23,241,663 26,805,036 ¤1,216,413 1,538,060
Property development 218,106 195,199 - -
Rendering of services 6,191 7,119 - -
23,465,960 27,007,354 ¤1,216,413 1,538,060
Other revenue
Rental income from storage of bulk liquid 60,235 46,898 - -
Interest income from financial assets not
at fair value through profit or loss 79,486 61,367 105,015 91,106
Dividend income (Note 8) 41,905 33,855 724,266 1,540,513
181,626 142,120 829,281 1,631,619
23,647,586 27,149,474 2,045,694 3,169,679
161

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Timing of recognition of revenue
from contracts with customers
At point in time 23,242,425 26,814,256 1,216,413 1,538,060
Over time 223,535 193,098 - -
23,465,960 27,007,354 ¤1,216,413 1,538,060
Disaggregation of revenue from contracts with customers which has been presented based on geographical location of
customers is set out in Note 44.
5. OPERATING PROFIT
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Operating profit is arrived at after charging and
(crediting) the following:
Auditors' remuneration
- BDO PLT
statutory audit
current year 1,104 1,253 331 331
under provision in prior year - 11 - -
assurance related services 22 48 13 11
- overseas affiliates of BDO International
statutory audit 1,589 1,314 - -
- other auditors
statutory audit
current year 1,561 1,119 - -
Under/(over) provision in prior year 14 (8) - -
assurance related services 61 117 - -
non-audit services 89 2 - -
Depreciation of property, plant and
equipment (Note 12) 902,460 867,786 74,023 68,719
Depreciation of right-of-use assets (Note 13) 58,280 59,223 32,965 22,582
Amortisation of intangible assets (Note 17) 5,470 3,727 - -
Net change in fair value of biological assets (Note 24) (11,179) 15,337 ¤ (4,467) 13,659
Impairment losses of
- property, plant and equipment (Note 12) 27,821 43,313 - -
- intangible assets (Note 17) 44 - - -
- investment in a subsidiary (Note 18) - - 82,857 -
- plasma project receivables (Note 22) 62,915 8,586 - -
- trade receivables (Note 25) 922 661 - -
- other receivables (Note 26) 20 7 - -
Property, plant and equipment written off 7,472 6,793 1,366 119
Personnel expenses (excluding key management
personnel)
- salaries 1,846,378 1,690,676 305,334 305,031
- employer's statutory contributions 178,009 160,507 23,163 21,910
- defined contribution plans 29,838 35,486 - -
Research and development expenditure 20,696 19,409 16,857 15,803
Retirement benefits provision (Note 35) 64,527 68,415 9,407 12,388
Write down of inventories to net realisable
value (Note 15) 165,461 285,841 28,067 11,701
Write off of
- trade receivables 1,220 4,730 - -
- other receivables - 6,348 - -
Reversal of impairment losses of
- trade receivables (Note 25) (3,213) (20,693) ¤ - -
- plasma project receivables (Note 22) (874) (523) - -
- investment in a subsidiary - - - (9,100)
Write back of slow moving inventories (Note 15) (331) (429) - -
Write back of inventories previously written down to
net realisable value (Note 15) (108,456) (7,410) - -
162
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Amortisation of deferred income (Note 34) (8,646) (8,653) - -
(Gain)/Loss on disposal of property, plant and
equipment (2,888) (1,590) 248 (358)
Surplus on government acquisition of land (42,218) (4,049) (42,218) (4,049)
Surplus on disposal of land (10,212) (3,698) - -
Surplus on disposal of a business line (76,443) - - -
Net loss/(gain) in foreign exchange 159,085 10,311 (29,853) (9,969)
Rental income from land and buildings (5,620) (4,395) (3,120) (2,687)
Gain on redemption of preference shares - - (753) -
6. FINANCE COSTS
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Interest expense/Profit payment of financial liabilities
that are not at fair value through profit or loss
Interest expense
Term loans 69,575 62,498 40,912 40,912
Lease liabilities (Note 33) 7,058 5,672 5,429 4,252
Other interest 93,113 56,002 455 1,421
Inter-company interest - - 979 764
169,746 124,172 47,775 47,349
Profit payment on Islamic medium term notes 235,930 233,958 235,930 233,958
405,676 358,130 283,705 281,307
7. KEY MANAGEMENT PERSONNEL COMPENSATION

The key management personnel compensation is as follows:
Group and Company

2023 2022
RM'000 RM'000
Short term benefits
Directors' remuneration
Fees provided 2,284 2,333
Other emoluments 19,786 21,579
Benefits-in-kind 85 91
22,155 24,003
Key management personnel comprises Directors of the Group entities, who have authority and responsibility for planning,
directing and controlling the activities of the Group entities either directly or indirectly.
8. DIVIDEND INCOME
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Gross dividends from:
Equity instruments
Investment in unquoted shares 963 1,789 963 1,789
Investment in shares quoted outside Malaysia 29,984 27,933 ¤ - 42,179
Money market funds 10,958 4,133 1,847 3,064
Unquoted subsidiaries - - 711,991 1,483,660
Unquoted associates - - 9,465 9,821
41,905 33,855 724,266 1,540,513
163

9. TAX EXPENSE/(INCOME)
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Components of tax expense
Current tax expense
Malaysian taxation 161,929 361,310 35,114 97,597
Overseas taxation 218,046 436,682 1,563 7,802
379,975 797,992 36,677 105,399
(Over)/Under provision of tax expense in respect
of previous year
Malaysian taxation (47,216) (28,186) (45,896) (27,465)
Overseas taxation 12,389 25,834 - -
(34,827) (2,352) ¤ (45,896) (27,465)
345,148 795,640 (9,219) 77,934
Deferred tax
Origination and reversal of temporary differences (168,631) (3,888) (7,240) 38,359
Relating to changes in tax rate (33) - - -
Over provision in respect of previous year (14,954) (10,631) ¤ - -
(183,618) (14,519) (7,240) 38,359
161,530 781,121 (16,459) 116,293
The Finance Act 2021 gazetted on 31 December 2021 enacts the special one-off tax known as “Cukai Makmur”
(“Prosperity tax”) be imposed on non-SME companies that generate high income during the COVID-19 pandemic period
for year of assessment 2022. A company with chargeable income for the first RM100 million is taxed at 24% and
remaining chargeable income is taxed at a one-off rate of 33%.
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Reconciliation of effective tax expense
Profit before taxation 1,152,227 3,219,478 810,428 1,777,309
Taxation at Malaysian income tax rate of 24%

(2022: 24%) 276,534 772,675 194,503 426,554
Effect of different tax rates (11,424) (11,964) - (237)
Withholding tax on foreign dividend and interest income 27,498 88,146 2,021 7,977
Expenses not deductible for tax purposes 80,580 115,514 63,670 83,193
Tax exempt and non-taxable income (97,730) (53,618) (226,711) (389,948)
Tax incentives (40,924) (9,100) (4,046) (3,796)
Deferred tax assets not recognised during the year 24,453 3,058 - -
Utilisation of previously unrecognised tax losses
and unabsorbed capital allowances (5,887) (45,961) ¤ - -
Expiry of tax losses 3,569 3,671 - -
Tax effect on associates' and joint ventures' results 46,925 (44,072) ¤ - -
Recognition of deferred tax assets not taken
up previously (94,524) (68,586) - -
Effect of changes in tax rates on deferred tax (33) - - -
Over provision of tax expense in respect of
previous year (34,827) (2,352) ¤ (45,896) (27,465)
Over provision of deferred tax in respect of
previous year (14,954) (10,631) - -
Prosperity tax - 40,630 - 20,015
Others 2,274 3,711 - -
Tax expense/(income) 161,530 781,121 (16,459) 116,293
The Company is able to distribute dividends out of its entire distributable reserves under the single tier company income
tax system.
164
10. EARNINGS PER SHARE

The basic earnings per share is calculated by dividing the profit for the year attributable to equity holders of the Company
of RM834,259,000 (2022: RM2,166,290,000) for the Group and RM826,887,000 (2022: RM1,661,016,000) for the
Company by the weighted average number of 1,078,340,663 (2022: 1,078,055,848) shares of the Company in issue
during the year.
Diluted earnings per share equals basic earnings per ordinary share.
11. DIVIDENDS
Group and Company
2023 2022
RM'000 RM'000
Dividends recognised in the current year are:
Final single tier dividend of 80 sen per share for the financial year ended
30 September 2022 was paid on 28 February 2023 (2022: final single tier dividend
of 80 sen per share for the financial year ended 30 September 2021 was paid
on 1 March 2022) 862,749 862,525
Interim single tier dividend of 20 sen per share for the financial year ended
30 September 2023 was paid on 1 August 2023 (2022: interim single tier dividend
of 20 sen per share for the financial year ended 30 September 2022 was paid
on 2 August 2022) 215,687 215,631
1,078,436 1,078,156
The final dividend for the financial year ended 30 September 2022 and interim dividend for the financial year ended 30
September 2023 were paid on the number of outstanding shares in issue and fully paid of 1,078,435,986 (2022:
1,078,156,123) and 1,078,435,986 (2022: 1,078,156,123) respectively.
A final single tier dividend of 40 sen (2022: 80 sen) per share amounting to RM431,374,000 (2022: RM862,749,000)
(“Final Dividend”) has been declared by the Directors in respect of the financial year ended 30 September 2023. The
Directors have also determined that the Dividend Reinvestment Plan (“DRP”) as stated in Note 31(v) to the financial
statements will apply to the entire portion of the Final Dividend.
Under the DRP, the shareholders of the Company will have the following options:
(i) to elect to participate in the reinvestment option by reinvesting the entire electable portion of the Final Dividend into
new shares of the Company;
(ii) to elect to participate in the reinvestment option by reinvesting part of the electable portion of the Final Dividend
into new shares of the Company and to receive the balance of the electable portion in cash; or
(iii) to elect not to participate in the reinvestment option and thereby receive the entire Final Dividend entitlement in
cash.
The Company will submit an application to Bursa Malaysia Securities Berhad (“Bursa Securities”) for the listing and
quotation for the new shares of the Company to be issued pursuant to the DRP on the Main Market of Bursa Securities.
The Final Dividend is not taxable in the hands of the receiving Shareholders.
The Final Dividend will be recognised in the subsequent financial year.
165

12. PROPERTY, PLANT AND EQUIPMENT

Equipment, Capital
Freehold Bearer Plant and Fittings, Work-In-
Land Plants Buildings Machinery Vehicles Etc Progress Total
Group RM'000 RM’000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Cost
At 1 October 2021 1,000,076 6,781,467 1,810,155 5,852,686 443,039 928,830 416,757 17,233,010
Reclassifications - (5,128) 47,089 176,670 620 20,863 (240,114) -
Additions - 358,597 36,650 97,399 43,342 33,123 693,178 1,262,289
Acquisition through business
combination - 633,416 22,714 5,741 2,091 3,083 1,234 668,279
Disposals (11) (76) (163) (14,715) (11,430) (1,513) - (27,908)
Disposal of a subsidiary - (116,221) (5,829) (457) (1,885) (1,744) - (126,136)
Written off - (35,704) (3,048) (16,698) (3,810) (4,359) (89) (63,708)
Currency translation differences (6,784) 183,938 27,233 (72,755) 11,797 21,439 6,882 171,750
At 30 September 2022 993,281 7,800,289 1,934,801 6,027,871 483,764 999,722 877,848 19,117,576
Reclassifications (11,816) 3,577 100,510 341,460 1,944 6,380 (442,055) -
Additions - 386,636 32,698 113,270 68,093 37,872 926,107 1,564,676
Acquisition through business
combination 27,506 - 8,831 39,129 74 753 3,966 80,259
Disposals (107) (357) (286) (2,265) (14,653) (23,023) - (40,691)
Written off - (39,948) (1,331) (32,721) (7,638) (3,933) (1,250) (86,821)
Currency translation differences 18,922 (3,078) 15,953 118,073 1,046 5,222 6,581 162,719
At 30 September 2023 1,027,786 8,147,119 2,091,176 6,604,817 532,630 1,022,993 1,371,197 20,797,718
Accumulated depreciation/
amortisation and
impairment losses
At 1 October 2021
amortisation - 1,526,138 782,096 2,885,999 337,057 385,896 - 5,917,186
Accumulated impairment losses - 160,971 5,144 132,115 - 2,743 - 300,973
- 1,687,109 787,240 3,018,114 337,057 388,639 - 6,218,159
Reclassifications - - 7 48 19 (74) - -
Depreciation/Amortisation charge - 333,105 85,635 329,826 36,372 92,934 - 877,872
Impairment loss - - 6,940 36,373 - - - 43,313
Disposals - (14) (35) (7,818) (10,601) (1,296) - (19,764)
Disposals of a subsidiary - (116,221) (5,829) (457) (1,882) (1,744) - (126,133)
Written off - (32,924) (1,850) (14,440) (3,419) (4,282) - (56,915)
Currency translation differences - 72,950 10,659 (45,112) 10,288 8,942 - 57,727
At 30 September 2022
amortisation - 1,874,450 872,280 3,148,375 367,834 480,385 - 6,743,324
- 1,944,005 882,767 3,316,534 367,834 483,119 - 6,994,259
Reclassifications - - 156 3,078 - (3,234) - -
Impairment loss - - 2,189 25,632 - - - 27,821
Disposals - (310) (165) (1,783) (11,815) (20,713) - (34,786)
Written off - (39,591) (325) (28,679) (7,161) (3,593) - (79,349)
Currency translation differences - 3,003 4,667 57,583 636 5,640 - 71,529
amortisation - 2,183,050 964,648 3,515,281 388,618 559,623 - 7,611,220
- 2,253,480 977,358 3,710,224 388,618 562,405 - 7,892,085
Carrying amounts
At 1 October 2021 1,000,076 5,094,358 1,022,915 2,834,572 105,982 540,191 416,757 11,014,851
At 30 September 2022 993,281 5,856,284 1,052,034 2,711,337 115,930 516,603 877,848 12,123,317
At 30 September 2023 1,027,786 5,893,639 1,113,818 2,894,593 144,012 460,588 1,371,197 12,905,633
166
2023 2022
RM'000 RM'000
Depreciation/Amortisation charge for the year is allocated as follows:
Recognised in statement of profit or loss (Note 5) 902,460 867,786
Capitalised in bearer plants 10,151 10,086
912,611 877,872
Impairment testing
Property, plant and equipment are tested for impairment by comparing the carrying amounts with their recoverable
amounts. The recoverable amounts of property, plant and equipment are determined based on value-in-use calculations
using cash flow projections from the financial budgets and forecasts approved by management covering periods ranging
from five years to seventeen years (2022: five to twenty years).
A subsidiary used cash flow projections covering periods of up to seventeen years (2022: twenty years) due to long
period of gestation of their businesses.
The key assumptions for the impairment testing are disclosed in Note 16.
Impairment loss
Impairment loss on property, plant and equipment was included in:
2023 2022
RM'000 RM'000
Administration expense 27,821 2,108

Other operating expenses - 41,205
27,821 43,313
The impairment was due to cessation of operations and under performance.
Impairment testing on assets in KL-Kepong Rubber Products Sdn Bhd (“KLKRP”)

The Group has carried out an impairment assessment on property, plant and equipment and right-of-use assets of
KLKRP with a carrying amount of RM304.9 million (2022: RM260.8 million) in view of its continued losses.
The impairment assessment is determined based on cash flow forecasts approved by management covering a period up
to 15 years applying the following key assumptions:
(i) Growth rates and forecasted margins based on management’s estimate of the industry trends and historical
performance; and
(ii) A pre-tax discount rate of 6.2%, which reflects the specific risks relating to the assets.
Based on the impairment assessment, no impairment is required for the assets related to KLKRP. There are no
reasonably possible changes in any of the key assumptions used that would cause the carrying amount of the assets to
materially exceed the recoverable amount.
Capital
Freehold Bearer Plant and Equipment, Work-In-
Land Plants Buildings Machinery Vehicles Fittings, Etc Progress Total
Company RM'000 RM’000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Cost
At 1 October 2021 818,678 1,320,808 201,766 255,261 101,910 90,714 19,843 2,808,980
Reclassification - - 32,428 3,038 279 4,152 (39,897) -
Additions - 77,102 5,486 9,641 7,435 8,206 25,809 133,679
Disposals (12) (76) - (201) (2,040) (5) - (2,334)
Written off - - (854) (937) (252) (716) - (2,759)
At 30 September 2022 818,666 1,397,834 238,826 266,802 107,332 102,351 5,755 2,937,566
Reclassification - - 253 - - 146 (399) -
Additions - 92,180 5,553 18,216 7,441 6,388 14,189 143,967
Disposals (107) (357) - - (2,942) (573) - (3,979)
Written off - - (193) (1,420) (1,802) (1,870) (1,250) (6,535)
At 30 September 2023 818,559 1,489,657 244,439 283,598 110,029 106,442 18,295 3,071,019
167

Capital
Freehold Bearer Plant and Equipment, Work-In-
Land Plants Buildings Machinery Vehicles Fittings, Etc Progress Total
Company RM'000 RM’000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Accumulated
depreciation
At 1 October 2021 - 607,866 149,415 222,512 83,365 75,767 - 1,138,925
Reclassification - - 6 (2) - (4) - -
Disposals - (13) - (77) (1,986) (1) - (2,077)
Written off - - (750) (932) (250) (708) - (2,640)
At 30 September 2022 - 652,016 156,368 228,035 88,949 80,343 - 1,205,711
Reclassification - - 37 - - (37) - -
Disposals - (310) - - (2,258) (216) - (2,784)
Written off - - (169) (1,411) (1,746) (1,843) - (5,169)
At 30 September 2023 - 697,329 165,350 234,084 92,553 85,209 - 1,274,525
Carrying amounts
At 1 October 2021 818,678 712,942 52,351 32,749 18,545 14,947 19,843 1,670,055
At 30 September 2022 818,666 745,818 82,458 38,767 18,383 22,008 5,755 1,731,855
At 30 September 2023 818,559 792,328 79,089 49,514 17,476 21,233 18,295 1,796,494
2023 2022
RM'000 RM'000
Depreciation/Amortisation charge for the year is allocated as follows:
Recognised in statement of profit or loss (Note 5) 74,023 68,719
Capitalised in bearer plants 2,744 2,784
76,767 71,503
Certain property, plant and equipment of the Group with a total carrying amount of RM147,670,000 (2022:
RM115,478,000) as at end of the financial year ended 30 September 2023 were charged to banks as security for
borrowings (Note 36).
Certain freehold land, buildings, plant and machinery of the Group are leased out to third parties. These leases are
classified as operating lease because they do not transfer substantially all the risks and rewards incidental to the
ownership of these assets.
13. RIGHT-OF-USE ASSETS
Leasehold Land Plant and

Land Use Right Buildings Machinery Others Total
Group RM’000 RM'000 RM'000 RM'000 RM'000 RM'000
Cost
At 1 October 2021 1,334,047 198,760 33,276 33,427 1,064 1,600,574
Remeasurement and modification of leases - - - (2) - (2)
Additions 15,470 31,704 722 5,745 21 53,662
Acquisition through business combination 17,377 - - - - 17,377
Disposal of a subsidiary (36,125) - - - - (36,125)
Termination of leases - - (827) (504) (176) (1,507)
Currency translation differences 12,329 3,180 493 (1,266) (24) 14,712
At 30 September 2022 1,343,098 233,644 33,664 37,400 885 1,648,691
Remeasurement and modification of leases - - 2,580 - - 2,580
Additions 14,502 500 24,038 1,050 212 40,302
Acquisition through business combination - - 869 460 475 1,804
Termination of leases - - (5,104) (312) (57) (5,473)
Currency translation differences 1,376 840 237 1,924 53 4,430
At 30 September 2023 1,358,976 234,984 56,284 40,522 1,568 1,692,334
168
Leasehold Land Plant and

Land Use Right Buildings Machinery Others Total
Group RM’000 RM'000 RM'000 RM'000 RM'000 RM'000
Accumulated depreciation and
impairment losses
At 1 October 2021
Accumulated depreciation 183,095 14,482 13,185 12,732 522 224,016
Accumulated impairment losses 59,930 - - - - 59,930
243,025 14,482 13,185 12,732 522 283,946
Disposal of a subsidiary (36,125) - - - - (36,125)
Depreciation charge 34,048 9,394 10,303 5,263 215 59,223
Termination of leases - - (335) (401) (175) (911)
Currency translation differences 4,122 342 243 (665) (17) 4,025
245,070 24,218 23,396 16,929 545 310,158
Depreciation charge 31,057 10,361 11,394 5,102 366 58,280
Termination of leases - - (3,515) (124) (57) (3,696)
Currency translation differences 192 249 154 1,289 30 1,914
276,319 34,828 31,429 23,196 884 366,656
Carrying amounts
At 1 October 2021 1,091,022 184,278 20,091 20,695 542 1,316,628
At 30 September 2022 1,098,028 209,426 10,268 20,471 340 1,338,533
At 30 September 2023 1,082,657 200,156 24,855 17,326 684 1,325,678
Leasehold Land
Land Use Right Buildings Others Total
Company RM'000 RM'000 RM'000 RM'000 RM'000
Cost
At 1 October 2021 239,715 137,312 6,509 194 383,730
Remeasurement and modification of leases - 52,697 - - 52,697
At 30 September 2022 239,715 190,009 6,509 194 436,427
Remeasurement and modification of leases - (61,228) - - (61,228)
Addition - 247 - - 247
At 30 September 2023 239,715 129,028 6,509 194 375,446
Accumulated depreciation
At 1 October 2021 45,177 29,023 2,112 43 76,355
Depreciation charge 3,056 18,421 1,065 40 22,582
At 30 September 2022 48,233 47,444 3,177 83 98,937
Depreciation charge 3,057 28,804 1,065 39 32,965
At 30 September 2023 51,290 76,248 4,242 122 131,902
Carrying amounts
At 1 October 2021 194,538 108,289 4,397 151 307,375
At 30 September 2022 191,482 142,565 3,332 111 337,490
At 30 September 2023 188,425 52,780 2,267 72 243,544
Nature of the leasing activities as lessee

The Group leases various land, offices and equipment. Lease terms are negotiated on an individual basis and contain a
wide range of different terms and conditions.
169

Restriction imposed by lease

The lease agreements for the leasehold land do not allow the Group to assign, transfer or sublease or create any charge,
lien or trust in respect of or dispose of the whole or any part of the land with third party interest(s) without the prior consent
of the lessor.
Impairment testing
Impairment testing on right-of-use assets similar to that of property, plant and equipment as disclosed in Note 12.
14. INVESTMENT PROPERTY

Building
Freehold Under
Group Land Construction Total
RM'000 RM'000 RM'000
Cost and Carrying amounts
At 1 October 2021 and 30 September 2022 - - -
Transfer from property development cost 19,206 - 19,206
Additions - 4,297 4,297
At 30 September 2023 19,206 4,297 23,503
Investment property comprises a shopping centre under construction as at year end which is not subject to depreciation.
Fair value for investment property under construction is not available as the fair value of the work in progress building is
unable to be reliably measured given the range of estimates involved during the construction phase, including the term
yield, reversion yield and price per square foot.
15. INVENTORIES
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Non-current
Land held for property development 2,012,424 1,991,597 - -
Current
Property development costs 231,987 228,295 - -
Developed properties held for sale, inventories of
produce, stores and materials and nursery 2,724,593 3,795,868 ¤ 77,256 81,810
2,956,580 4,024,163 77,256 81,810
4,969,004 6,015,760 77,256 81,810
(a) Land held for property development
Group
2023 2022
RM'000 RM'000
Freehold land at cost
At beginning of the year 1,970,698 1,980,583
Transfer to property development cost - (9,885)
At end of the year 1,970,698 1,970,698
Development expenditure at cost

At beginning of the year 20,899 54,674
Additions 20,827 8,695
Transfer to property development cost - (42,470)
At end of the year 41,726 20,899
Total 2,012,424 1,991,597
170

(b) Property development costs

Group
2023 2022
RM'000 RM'000
Property development costs comprise:
Land costs 80,583 45,126
Development costs 962,593 852,228
1,043,176 897,354
Transfer from land held for property development:
Land costs - 9,885
Development costs - 42,470
- 52,355
Costs incurred during the year:
Land costs - 25,572
Development costs 156,743 67,895
156,743 93,467
1,199,919 1,043,176
Costs recognised as an expense in profit or loss:
Previous years (741,714) (632,696)
Current year (124,703) (109,018)
(866,417) (741,714)
Transfer of developed properties held for sale to inventories:
Previous years (73,167) (73,167)
Current year (9,142) -
(82,309) (73,167)
Transfer to investment property under construction:
Current year (19,206) -
231,987 228,295
(c) Developed properties held for sale, inventories of produce, store and materials and nursery
Group Company
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
At cost
Inventories of produce 260,202 285,189 46,227 27,835
Finished goods 508,631 887,070 - -
Work-in-progress 538,348 489,066 - -
Developed properties held for sale 22,949 15,303 - -
Stores and materials 786,576 1,013,160 ¤ 18,737 23,682
Nursery 29,731 24,123 9,391 8,264
2,146,437 2,713,911 74,355 59,781
At net realisable value
Inventories of produce 55,663 49,619 2,901 22,029
Finished goods 363,736 600,644 - -
Work-in-progress 158,212 430,943 - -
Developed properties held for sale 545 751 - -
578,156 1,081,957 ¤ 2,901 22,029
2,724,593 3,795,868 77,256 81,810
Recognised in profit or loss

Inventories recognised as cost of sales 19,299,895 20,690,008 720,342 736,640
Write down of inventories to net realisable value 165,461 285,841 28,067 11,701
Write back of slow moving inventories (331) (429) - -
Write back of inventories previously written down to
net realisable value (108,456) (7,410) ¤ - -
The Group writes down its obsolete or slow moving inventories based on assessments of their estimated net selling price.
Inventories are written down when events or changes in circumstances indicate that the carrying amounts could not be
recovered. Management specifically analyses sales trend and current economic trends when making this judgement to
evaluate the adequacy of the write down for obsolete or slow moving inventories.
Inventories previously written down to net realisable values are reversed during the financial year as the inventories were
sold above the carrying amounts.
171

16. GOODWILL ON CONSOLIDATION

Group
2023 2022
RM'000 RM'000
Cost
Currency translation differences 15,484 8,824
Impairment testing
For the purpose of impairment testing, goodwill is allocated to the Group's cash-generating unit ("CGU") identified
according to the Group's business segments as follows:
Group
2023 2022
RM'000 RM'000
Plantation 138,436 138,521

Manufacturing 213,286 197,717
Property development 3 3
351,725 336,241
Impairment testing
Goodwill is tested for impairment by comparing the carrying amounts with the recoverable amounts of the CGUs. The
recoverable amount of a CGU is determined based on value-in-use calculations using cash flow projections from the
financial budgets and forecasts approved by management covering a period of 5 years.
Key assumptions used in the value-in-use calculations are:
(i) the pre-tax discount rates which are the weighted average cost of capital adjusted for specific risks relating to
relevant segments. The discount rates used ranged from 6.2% to 8.3% (2022: 5.6% to 10.6%);
(ii) the growth rate used for the plantation companies is determined based on the management's estimate of commodity
prices, palm yields, oil extraction rates as well as cost of production whilst growth rates of companies in other
segments are determined based on the industry trends and past performances of the respective companies; and
(iii) profit margins are projected based on historical profit margin achieved.
In assessing the value-in-use, management is of the view that no foreseeable changes in any of the above key
assumptions would cause the carrying amounts of the respective CGUs to materially exceed their recoverable amounts.
172
17. INTANGIBLE ASSETS
Technology
Related Customer
Group Trademarks Patents Assets Lists Total
RM'000 RM'000 RM'000 RM'000 RM'000
Cost
At 1 October 2021 5,544 71,852 - 8,084 85,480
Additions - 1,151 - - 1,151
Currency translation difference (347) (322) - (508) (1,177)
At 30 September 2022 5,197 72,681 - 7,576 85,454
Additions - 1,755 - - 1,755
Write off (6) (40,921) - - (40,927)
Acquisition through business combination 23 841 12,326 24,927 38,117
Currency translation difference 480 4,897 - 701 6,078
At 30 September 2023 5,694 39,253 12,326 33,204 90,477
Accumulated amortisation and

impairment losses
At 1 October 2021
Accumulated amortisation 2,217 49,450 - 5,649 57,316
Accumulated impairment losses - 7,257 - - 7,257
2,217 56,707 - 5,649 64,573
Amortisation charge 354 2,711 - 662 3,727
Currency translation difference (146) 529 - (371) 12
Accumulated amortisation 2,425 52,345 - 5,940 60,710
2,425 59,947 - 5,940 68,312
Amortisation charge 376 2,531 1,232 1,331 5,470
Impairment loss - 44 - - 44
Write off (6) (40,921) - - (40,927)
Currency translation difference 232 3,895 - 566 4,693
Accumulated amortisation 3,027 17,362 1,232 7,837 29,458
3,027 25,496 1,232 7,837 37,592
Carrying amounts
At 1 October 2021 3,327 15,145 - 2,435 20,907
At 30 September 2022 2,772 12,734 - 1,636 17,142
At 30 September 2023 2,667 13,757 11,094 25,367 52,885
The amortisation of intangible assets amounting to RM1,973,000 (2022: RM2,186,000) and RM3,497,000 (2022:
RM1,541,000) are included in cost of sales and administration expenses respectively.
Impairment loss
During the financial year, the Group has recognised an impairment loss amounting to RM44,000 based on value-in-use
method to bring the carrying amount to its recoverable amount due to cessation of operations. The impairment loss was
included in administrative expenses.
173

18. INVESTMENTS IN SUBSIDIARIES AND AMOUNTS OWING BY/TO SUBSIDIARIES
Company
2023 2022
RM'000 RM'000
Quoted shares at cost
At beginning of the year - 2,729,800
Reclassification - (2,729,800)
At end of the year - -
Unquoted shares at cost

At beginning of the year 8,947,080 5,624,237
Reclassification - 2,604,210
Additions 586,619 842,424
Capital reduction (6,736) (17,167)
Redemptions (39,473) (106,624)
At end of the year 9,487,490 8,947,080
Accumulated impairment losses

At beginning of the year (368,596) (377,696)
Additions (82,857) -
Reversal - 9,100
At end of the year (451,453) (368,596)
9,036,037 8,578,484
Capital contribution to subsidiaries 297,828 159,103
Total investments in subsidiaries 9,333,865 8,737,587
The amounts due from certain subsidiaries are deemed as capital contribution to these subsidiaries as the repayment of
these amounts are neither fixed nor expected.
No expected credit loss is recognised arising from the capital contribution to subsidiaries of the Company as the amount
is negligible.
Details of the subsidiaries are shown in Note 43.
Impairment testing on cost of investment in KLK Agro Plantations Pte Ltd ("KLKAP"), a wholly-owned subsidiary
KLKAP is the holding company of a plantation subsidiary in Liberia, Liberian Palm Developments Limited.
During the financial year, the Company has recognised an additional impairment loss on investment in KLKAP amounting
to RM82.9 million to bring the carrying amount to its recoverable amount of RM127.2 million (2022: RM244.2 million) (net
of impairment loss of RM291.6 million due to under performance of operations and recognised based on the value-in-
use calculation of the plantation subsidiary in Liberia).
The key assumptions for the impairment testing are disclosed in Note 16.
Amounts owing by subsidiaries

Company
2023 2022
RM'000 RM'000
Non-current assets 1,516,679 2,031,550

Allowances for impairment losses (2,406) (2,261)
1,514,273 2,029,289
Current assets 81,060 155,042
1,595,333 2,184,331
174
The movements in allowance for impairment losses of amounts owing by subsidiaries during the year were as follows:
Company
2023 2022
RM'000 RM'000

Currency translation differences 145 103
The management reviewed the expected repayments from subsidiaries and hence classified certain amounts owing by
subsidiaries as non-current.
Non-current amounts owing by subsidiaries of RM1,514,273,000 (2022: RM2,029,289,000) are non-trade, unsecured
and subject to interest charge ranging from 3.1% to 7.2% (2022: 1.0% to 5.9%) per annum.
Current amounts owing by subsidiaries are trade and non-trade, unsecured, non-interest bearing and repayable within
next twelve months. Trade transactions are subject to normal trade credit terms.
Amounts owing to subsidiaries

Amounts owing to subsidiaries are trade and non-trade, unsecured, payable within twelve months and non-interest
bearing.
19. INVESTMENTS IN ASSOCIATES

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Shares at cost
Overseas quoted corporation 2,012,313 1,873,310 - -
Unquoted corporations
Malaysia 23,190 23,165 6,240 6,215
Overseas 30,202 29,750 25,510 25,510
53,392 52,915 31,750 31,725
2,065,705 1,926,225 31,750 31,725
Share of post-acquisition reserves, net of
dividends received 223,140 440,772 - -
2,288,845 2,366,997 ¤ 31,750 31,725
At market value
Overseas quoted corporation 83,445 676,284 - -
(a) Material associate and summary of financial information

The Group regards Synthomer plc ("Synthomer") as a material associate which is involved in speciality chemicals
business. The results of Synthomer contribute to the Group's investment holding business segment. Synthomer is
a public listed company in the United Kingdom with financial year ending 31 December, and the financial statements
are only published half-yearly, i.e. 30 June and 31 December.
Summarised statement of financial position as at 30 June 2023 and 30 June 2022:
Group
2023 2022
RM'000 RM'000
Non-current assets 10,160,544 10,783,988

Current assets 5,200,270 6,894,816
Non-current liabilities (6,820,091) (7,495,220)
Current liabilities (3,023,133) (4,312,560)
Net assets attributable to shareholders of Synthomer 5,443,701 5,797,526
175

Summarised statement of comprehensive income for the 12-month period ended 30 June 2023 and 30 June 2022:
Group
2023 2022
RM'000 RM'000
Revenue 11,817,075 13,387,667
Operating profit after tax 15,016 1,124,302

Less: Special items (738,011) (608,355)
(Loss)/Profit for the year (722,995) 515,947
Other comprehensive (loss)/income (220,792) 828,925
Total comprehensive (loss)/income (943,787) 1,344,872
Dividends received from Synthomer - 164,648
Special items comprised mainly non-operating charges incurred on impairment loss of a business division,
amortisation of acquired intangibles, restructuring and site closure costs.
Summarised capital commitment and contingent liabilities based on the latest published financial statements as at 31
December 2022 and 31 December 2021:
Group
2023 2022
RM'000 RM'000
Capital commitment – property, plant and equipment 186,726 97,307
Contingent liabilities – environmental liability 15,465 12,940
The reconciliation of the above summarised financial information to the carrying amount of the Group's interests in
Synthomer is as follows:
Group
2023 2022
RM'000 RM'000
Net assets attributable to shareholders of Synthomer 5,443,701 5,797,526
Proportion of ownership interest held by the Group 27% 26%
Group's share of net assets 1,462,722 1,521,850

Goodwill 716,682 729,534
Carrying amount of Group's interests in Synthomer 2,179,404 2,251,384
Impairment testing on investment in Synthomer

As at 30 September 2023, the market value of the Group’s investment in Synthomer amounted to RM83.4 million
which was lower than its carrying amount of RM2.18 billion (2022: RM2.25 billion). Management has performed an
impairment assessment to determine the recoverable amount of the investment based on the higher of fair value less
costs of disposal and value-in-use calculations. The value assigned to the key assumptions used in the value-in-use
calculations represent management’s assessment of future trends and are based on internal and external sources of
data, where available.
The value-in-use calculations are prepared using cash flow forecast from approved financial budgets and forecasts
with the following key assumptions:
(i) cash flow projections covering a period of 5 years;

(ii) pre-tax discount rate of 8.8%;
(iii) Earnings before interest, tax, depreciation and amortisation (“EBITDA”) growth rates ranging from -35.0% to
47.0%; and
(iv) terminal growth rate of 2.1%.
176
The sensitivity analysis of each of these key assumptions assuming all other variables are held constant are as
follows:
Key assumptions applied Changes in key assumptions Potential impairment
(RM’ million)
EBITDA Decrease by 10% 322.6
Discount rate Increase by 1% 80.0
Terminal growth rate Decrease by 1% Breakeven
(b) Other associates and summary of financial information

Group
2023 2022
RM'000 RM'000
Summary of financial information of other associates:
Non-current assets 120,522 132,101
Non-current liabilities (74,468) (78,943)
Current liabilities (192,266) (304,978)
Revenue 1,028,453 1,004,020
Profit for the year 58,817 84,152

Other comprehensive (loss)/income (2,015) 124
Total comprehensive income 56,802 84,276
Dividends received from other associates 12,482 20,072
As at 30 September 2023 and 30 September 2022, the Group did not have any associate which was individually material
to the Group, except for Synthomer.
Details of the associates are shown in Note 43.
20. INVESTMENTS IN JOINT VENTURES

Group
2023 2022
RM'000 RM'000
Shares at cost in unquoted corporations 59,258 59,258
Amounts owing by joint ventures 29,216 157,529
88,474 216,787
Share of post-acquisition reserves, net of dividends received (22,411) (825)
66,063 215,962
The Group did not have any joint venture which was individually material to the Group as at 30 September 2023 and 30
September 2022.
Group
2023 2022
RM'000 RM'000
Summary of financial information of joint ventures:
Non-current assets 96,636 106,289
Non-current liabilities (2,028) (115,977)
Current liabilities (361,351) (332,742)
Revenue 2,429,025 2,416,786
(Loss)/Profit for the year (41,200) 82,032
Other comprehensive loss (36) -
The amounts owing by joint ventures are deemed as capital contribution to the joint ventures as the repayments of these
amounts are neither fixed nor expected.
No expected credit loss is recognised arising from amount owing by joint ventures as the amount is negligible.
Details of the joint ventures are shown in Note 43.
177

21. OTHER INVESTMENTS

Group Company
2023 2022 2023 2022
RM'000 RM’000 RM’000 RM’000
Debt instrument at fair value through profit or loss 45,024 45,365 - -

Equity instruments at fair value through other
comprehensive income 700,218 550,346 125,321 146,550
745,242 595,711 125,321 146,550
(a) Debt instrument at fair value through

profit or loss
In an overseas quoted corporation 45,024 45,365 - -
(b) Equity instruments at fair value through

other comprehensive income
Quoted corporation
Malaysia 101,166 - 101,166 -
Overseas 587,154 543,660 16,858 139,864
688,320 543,660 118,024 139,864
Unquoted corporation
Malaysia 7,297 6,686 7,297 6,686
Overseas 4,601 - - -
11,898 6,686 7,297 6,686
700,218 550,346 125,321 146,550
22. OTHER RECEIVABLES

Group
2023 2022
RM'000 RM'000
Advances to plasma plantation projects 474,333 442,916

Allowance for impairment losses (80,264) (16,991)
394,069 425,925
The movements in allowance for impairment losses of advances to plasma plantation projects during the year were as
follows:
Group
2023 2022
RM'000 RM'000
12-month ECL Allowance
Impairment losses 62,915 8,586
Reversal of impairment losses (874) (523)
Currency translation differences 1,232 636
Plantation subsidiaries in Indonesia have participated in the "Kredit Koperasi Primer untuk Anggotanya" scheme (herein
referred to as plasma plantation projects) to provide financing and to assist in the development of oil palm plantation
under this scheme for the benefit of the communities in the vicinity of their operations. The advances to plasma plantation
projects are subject to interest charge ranging from 6.09% to 8.00% (2022: 5.36% - 8.00%) per annum.
178

23. DEFERRED TAXATION

Recognised deferred tax assets and liabilities are attributable to the following:
Liabilities Assets Net
2023 2022 2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Group
Property, plant and equipment 1,028,217 1,000,728 (199,028) (202,173) 829,189 798,555
Right-of-use assets 84,539 114,668 - - 84,539 114,668
Biological assets 34,526 32,554 - - 34,526 32,554
Unutilised tax losses - - (136,474) (40,063) (136,474) (40,063)
Provision for retirement benefits - - (80,285) (68,997) (80,285) (68,997)
Other items 38,166 38,820 (171,394) (99,147) (133,228) (60,327)
Tax liabilities/(assets) 1,185,448 1,186,770 (587,181) (410,380) 598,267 776,390
Set off of tax (108,816) (88,091) 108,816 88,091 - -
Net tax liabilities/(assets) 1,076,632 1,098,679 (478,365) (322,289) 598,267 776,390
Company
Property, plant and equipment 196,454 187,839 - - 196,454 187,839
Right-of-use assets 5,287 14,272 - - 5,287 14,272
Other items 8,181 7,109 (21,391) (13,449) (13,210) (6,340)
Tax liabilities/(assets) 209,922 209,220 (21,391) (13,449) 188,531 195,771
Set off of tax (21,391) (13,449) 21,391 13,449 - -
Net tax liabilities 188,531 195,771 - - 188,531 195,771
Deferred tax liabilities and assets are offset above where there is a legally enforceable right to set off current tax assets
against current tax liabilities and where the deferred taxes relate to the same taxation authority.
The components and movements in deferred tax liabilities and deferred tax assets (before offsetting) are as follows:
Other Provision Other

Property, Taxable Unutilised Unabsorbed for Deductible
Plant and Right-of-use Biological Temporary Tax Capital Retirement Temporary
Equipment Assets Assets Differences Losses Allowances Benefits Differences Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Group
At 1 October 2021 894,221 95,400 35,347 23,005 (51,313) (205,610) (91,654) (72,097) 627,299
Acquisition through
business combination 122,964 16,117 - - - - - - 139,081
Acquisition of assets - 832 - - - - - - 832
Recognised in profit or
loss (21,669) 5,677 (3,502) 9,979 11,757 15,032 (6,427) (14,735) (3,888)
Recognised in equity - - - - - - 28,814 - 28,814
Under/(Over) provision
in respect of
previous year 4,536 (3,395) - (7,226) 22 (4,255) - (313) (10,631)
Currency translation
differences 676 37 709 2,737 (529) (7,340) 270 (1,677) (5,117)
At 30 September 2022 1,000,728 114,668 32,554 28,495 (40,063) (202,173) (68,997) (88,822) 776,390
Acquisition through
business combination 2,607 (9) - 11,137 - - 9 (1,505) 12,239
Recognised in profit or
loss 21,981 (29,855) 2,018 (3,114) (111,263) 2,832 (4,430) (46,800) (168,631)
Recognised in equity - - - - - - (1,791) - (1,791)
Under/(Over) provision
in respect of
previous year 644 9 - 3 18,463 (199) (3,355) (30,519) (14,954)
Changes in tax rates (33) - - - - - - - (33)
Currency translation
differences 2,290 (274) (46) 1,439 (3,611) 512 (1,721) (3,542) (4,953)
At 30 September 2023 1,028,217 84,539 34,526 37,960 (136,474) (199,028) (80,285) (171,188) 598,267
179

Deferred tax assets include an amount of RM116,016,000 (2022: RM40,283,000) which relates to unutilised tax losses
and unabsorbed capital allowances of certain subsidiaries that suffered losses in the current and previous financial years.
The Group has concluded that the deferred tax assets are recoverable through estimated future taxable profits based on
the approved business plans and budgets of these subsidiaries.
Other
Property, Deductible
Plant and Right-of-use Biological Temporary
Equipment Assets Assets Differences Total
RM'000 RM'000 RM’000 RM'000 RM'000
Company
At 1 October 2021 177,021 11,284 10,387 (41,280) 157,412
Recognised in profit or loss 10,818 2,988 (3,278) 27,831 38,359
At 30 September 2022 187,839 14,272 7,109 (13,449) 195,771
Recognised in profit or loss 8,615 (8,985) 1,072 (7,942) (7,240)
At 30 September 2023 196,454 5,287 8,181 (21,391) 188,531
Group
2023 2022
RM'000 RM'000
No deferred tax assets/(liabilities) have been recognised for the following items:
Unabsorbed capital allowances 971 25,920
Deductible temporary differences 1,252 2,514
Tax incentives 44,594 46,898
Unutilised tax losses 188,242 391,617
Property, plant and equipment (412,331) (466,441)
(177,272) 508
Unutilised tax losses of RM94,228,000 (2022: RM50,712,000) will expire as follows under the respective tax legislation
of countries in which certain subsidiaries domicile:
Group
2023 2022
RM'000 RM'000
Year of expiry
2023 - 103
2025 20,092 2,782
2026 220 278
2027 2,223 711
2028 5,358 32,728
2029 3,311 935
2030 5,906 1,492
2031 541 3,360
2032 8,192 8,323
2033 48,385 -
94,228 50,712
Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable
profits will be available against which the Group can utilise the benefits therefrom.
Deferred tax liabilities have not been provided by a subsidiary on the taxable temporary differences as the taxable
temporary differences are expected to be reversed during the pioneer status period of 10 years commencing from year
of assessment 2022 when the subsidiary would not be subject to income tax.
The Group has tax losses carried forward of RM784,990,000 (2022: RM548,441,000) which give rise to the recognised
and unrecognised deferred tax assets in respect of unutilised tax losses above, which are subject to agreement by the
tax authorities.
180

24. BIOLOGICAL ASSETS

Unharvested
Fresh Fruit Growing
Bunches Livestock Crops Total
RM’000 RM’000 RM’000 RM’000
At fair value
Group
At 1 October 2021 156,581 6,359 47,278 210,218
Net change in fair value (17,444) 2,107 - (15,337)
Increase in crop sowing - - 61,282 61,282
Increase due to purchases and births - 1,096 - 1,096
Decrease due to sales - (2,122) - (2,122)
Transfer to profit or loss - - (47,880) (47,880)
Currency translation differences 3,529 (152) (1,290) 2,087
At 30 September 2022 142,666 7,288 59,390 209,344
Net change in fair value 9,565 1,614 - 11,179
Increase in crop sowing - - 58,912 58,912
Increase due to purchases and births - 1,547 - 1,547
Decrease due to sales - (2,489) - (2,489)
Transfer to profit or loss - - (60,305) (60,305)
Currency translation differences (154) 129 1,035 1,010
At 30 September 2023 152,077 8,089 59,032 219,198
Unharvested
Fresh Fruit
Bunches
RM’000
Company
At 1 October 2021 43,280
Net change in fair value (13,659)
At 30 September 2022 29,621
Net change in fair value 4,467
At 30 September 2023 34,088
The biological assets of the Group and of the Company comprise:
(a) Unharvested fresh fruit bunches ("FFB")

During the financial year, the Group and the Company harvested approximately 5.25 million mt (2022: 4.99 million
mt) and 1.0 million mt (2022: 0.96 million mt) of FFB respectively. The quantity of unharvested FFB of the Group
and of the Company as at 30 September 2023 included in the fair valuation of unharvested FFB was 243,430 mt
(2022: 236,461 mt) and 49,605 mt (2022: 45,592 mt) respectively.
If the FFB selling price changes by 5%, profit or loss for the Group and the Company would have equally increased
or decreased by approximately RM9.2 million (2022: RM8.6 million) and RM2.2 million (2022: RM1.9 million)
respectively.
If the quantity of unharvested FFB changes by 5%, profit or loss for the Group and the Company would have equally
increased or decreased by approximately RM9.2 million (2022: RM8.7 million) and RM2.2 million (2022: RM1.9
million) respectively.
(b) Livestock
Livestock mainly comprises sheep and cattle.
During the financial year, the Group produced 10,190 (2022: 10,669) sheep and 464 (2022: 365) cattle. The quantity
of sheep and cattle of the Group as at 30 September 2023 included in the fair valuation of livestock was 26,497 head
(2022: 26,244 head) and 1,268 head (2022: 1,099 head) respectively.
181

(c) Growing crops

Growing crops mainly comprise wheat, canola, barley and lupins.
During the financial year, the Group harvested 60,863 mt (2022: 63,128 mt) of wheat, 29,753 mt (2022: 18,899 mt)
of canola, 6,307 mt (2022: 10,484 mt) of barley and 2,789 mt (2022: 3,379 mt) of lupins. Area of crops sown for the
financial year were 24,212 hectares (2022: 17,425 hectares) for wheat, 9,351 hectares (2022: 14,109 hectares) for
canola, 1,814 hectares (2022: 1,519 hectares) for barley and 1,770 hectares (2022: 1,344 hectares) for lupins.
Sensitivity analysis for changes in volume of growing crops is not disclosed as the effect is immaterial to the Group.
The fair value of the Group and of the Company’s biological assets, which are estimated using unobservable inputs, is
categorised within Level 3 of the fair value hierarchy with the exception of livestock which are on Level 2 (inputs are
observable indirectly). Fair value assessments have been completed consistently using the same valuation techniques.
There were no transfers between all 3 levels of the fair value hierarchy during the financial year (2022: no transfer in
either directions).
None of the biological assets of the Group and of the Company as at 30 September 2023 and 2022 were pledged as
securities.
25. TRADE RECEIVABLES

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Trade receivables 2,293,399 1,935,980 26,744 20,168
Allowance for impairment losses (25,171) (24,290) - -
2,268,228 1,911,690 26,744 20,168
Included in the trade receivables of the Group are amounts owing by related parties of RM54,913,000 (2022:
RM59,807,000).
The allowance for impairment losses as at end of the reporting period is determined as follows:
Allowance
Expected for
Credit Loss Impairment
Gross Rate Losses Net
RM'000 % RM'000 RM'000
Group
2023
Not past due 1,958,675 0.0 * 54 1,958,621
Past due 1 - 90 days 296,846 0.3 775 296,071
Past due more than 90 days 37,878 64.3 24,342 13,536
2,293,399 1.1 25,171 2,268,228
2022
Not past due 1,632,947 0.0 * 26 1,632,921
Past due 1 - 90 days 272,183 0.4 1,171 271,012
Past due more than 90 days 30,850 74.9 23,093 7,757
1,935,980 1.3 24,290 1,911,690
Company
2023
Not past due 26,744 - - 26,744
2022
Not past due 20,168 - - 20,168
* less than 0.1%
No expected credit loss is recognised arising from the trade receivables of the Company as the amount is negligible.
The allowance account in respect of trade receivables is used to record impairment losses which were included in net
impairment losses on financial assets. Unless the Group is satisfied that the recovery of the amount is possible, the
amount considered irrecoverable is written off against the receivable directly.
The Group's and the Company’s normal trade credit term ranges from 5 to 150 (2022: 5 to 180) days and 7 to 60 (2022:
7 to 60) days respectively. Other credit terms are assessed and approved on a case-by-case basis.
182
The movements in allowance for impairment losses of trade receivables during the year were:
Group
2023 2022
RM'000 RM'000
Lifetime ECL Allowance
Beginning of the year 24,290 49,209
Acquisition through business combination 1,980 -
Impairment losses 922 661
Reversal of impairment (3,213) (20,693)
Impairment losses written off - (5,172)
Currency translation differences 1,192 285
26. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Other receivables 534,882 394,768 60,131 13,737
Allowance for impairment losses (2,223) (2,093) - -
532,659 392,675 60,131 13,737
Indirect tax receivables 260,339 266,962 - -
Prepayments 135,995 135,678 5,242 10,436
Refundable deposits 272,919 43,021 229,621 599
1,201,912 838,336 294,994 24,772
Included in the refundable deposits of the Group and of the Company was deposit payment of RM229,200,000 (2022:
Nil) for the proposed acquisition of shares in a quoted investment which was subsequently terminated and this deposit
was fully refunded after the financial year end.
The movements in allowance for impairment losses of other receivables during the year were:
Group
2023 2022
RM'000 RM'000
12-month ECL Allowance
Beginning of the year 2,093 2,286
Impairment losses 20 7
Currency translation differences 110 (200)
No expected credit loss is recognised arising from the other receivables of the Company as the amount is negligible.
27. CONTRACT ASSETS AND CONTRACT LIABILITIES

Group
2023 2022
RM'000 RM'000
Contract assets
Accrued billings 74,489 83,186
Contract liabilities
Progress billings (379) (1,376)
Advances from customers (130,744) (136,745)
(131,123) (138,121)
Total (56,634) (54,935)
(a) Accrued billings, progress billings and advances from customers

Contract assets and contract liabilities represent the timing differences in revenue recognition and the milestone billings.
The milestone billings are structured and/or negotiated with customers to reflect physical completion of the contracts.
Contract assets are transferred to receivables when the rights to economic benefits become unconditional. This usually
occurs when the Group issues billings to the customers. Contract liabilities are recognised as revenue when performance
obligations are satisfied.
183
NOTES
NOTES TO TO THE FINANCIAL
THE FINANCIAL STATEMENTS
STATEMENTS (Continued)
(b) The movements in the contract assets and (contract liabilities) are as follows:
Group
2023 2022
RM'000 RM'000
At beginning of the year (54,935) (113,136)
Net revenue recognised during the financial year 573,364 429,577
Net progress billings issued during the financial year (470,307) (127,172)
Cash received in advance (109,297) (247,900)
Currency translation differences 4,541 3,696
At end of the year (56,634) (54,935)
(c) Unsatisfied performance obligations

The following table shows revenue from performance obligations that are unsatisfied (or partially unsatisfied) at the
reporting date. The disclosure is only providing information for contracts that have duration of more than one year.
Group
2023 2022
RM’000 RM’000
Revenue is expected to be recognised from contracts with customers:
Within one year 610,494 100,766
Between 1 to 2 years 101,043 22,769
Between 2 to 5 years 15,871 2,557
727,408 126,092
No expected credit loss is recognised arising from contract assets as the amount is negligible.
28. DERIVATIVE FINANCIAL INSTRUMENTS

The Group classifies derivative financial instruments as financial assets or liabilities at fair value through profit or loss.
Contract/Notional
Amount
Net long/(short) Assets Liabilities
RM'000 RM'000 RM'000
Group
2023
Forward foreign exchange contracts (1,520,521) 4,832 19,561
Commodities future contracts (121,199) 42,313 42,225
Interest rate swap contracts 25,303 1,706 -
Commodities swap contracts (6,916) 61 291
Total derivative financial instruments 48,912 62,077
Less: Current portion 47,663 62,056
Non-current portion 1,249 21
2022
Forward foreign exchange contracts (2,219,925) 18,162 94,265
Commodities future contracts (235,480) 527,104 450,051
Total derivative financial instruments 545,266 544,316
Less: Current portion 545,266 544,316
Non-current portion - -
Company
2023
Forward foreign exchange contracts (19,942) - 209
Commodities future contracts (64,310) 2,860 -
Total derivative financial instruments 2,860 209
Less: Current portion 2,860 209
2022
Forward foreign exchange contracts (7,743) - 245
Commodities future contracts (215,385) 83,754 -
Total derivative financial instruments 83,754 245
Less: Current portion 83,754 245
184

The forward foreign exchange contracts are entered into by the Group as hedges for committed sales and purchases
denominated in foreign currencies. The hedging of the foreign currencies is to minimise the exposure of the Group to
fluctuations in foreign currencies on receipts and payments.
The commodities future contracts are entered into with the objective of managing and hedging the Group's exposure to
the adverse price movements in the vegetable oil commodities.
The interest rate swap contracts are entered into to convert floating rate liabilities to fixed rate liabilities to reduce the
Group’s exposure from adverse fluctuations in interest rates on underlying debt instruments.
The commodities swap contracts are entered into with the objective of managing and hedging the Group’s exposure to
the adverse price movement in the methane gas futures.
The Group does not have any other financial liabilities which are measured at fair value through profit or loss except for
derivative financial instruments.
29. SHORT TERM FUNDS

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Deposits with licensed banks 117,798 66,375 57,830 16,223
Short term funds represent funds placed in highly liquid money market instruments which are readily convertible to known
amount of cash and have insignificant risk of changes in fair value with original maturities of more than three months.
The effective interest rates per annum of deposits with licensed banks at the end of the reporting dates were as follows:
Group Company
2023 2022 2023 2022
Deposits with licensed banks 1.33% to 6.00% 0.20% to 5.50% 4.25% to 5.75% 3.40%
The maturities and repricing of deposits with licensed banks at the end of the reporting dates were as follows:
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Maturities above 3 months to 1 year
Deposits with licensed banks 117,798 66,375 57,830 16,223
Deposits with licensed banks of the Group amounting to RM10,472,000 (2022: RM13,578,000) as at 30 September 2023
have been pledged for the banking facilities granted to third parties for the purpose of the “Kredit Koperasi Primer untuk
Anggotanya” scheme in Indonesia and were also held as security for a covenant under a term loan of the Group to
maintain an amount equivalent to 12 months of interest payable under the term loan.
No expected credit loss is recognised arising from short term funds as the amount is negligible.
30. CASH AND CASH EQUIVALENTS

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Deposits with licensed banks 596,090 1,169,511 263,958 297,055
Cash and bank balances 1,278,808 836,685 178,026 54,617
2,382,122 2,785,198 463,101 1,058,682
Deposits with licensed banks and investment in money market funds in Malaysia represent short term investments in
highly liquid money market. These investments are readily convertible to cash and have insignificant risk of changes in
value with original maturities of three months or less.
Included in the Group's cash and bank balances as at 30 September 2023 was RM182,065,000 (2022: RM186,660,000)
held under Housing Development Accounts. The utilisation of this fund is subject to the Housing Developers (Housing
Development Account) (Amendment) Regulations 2002.
185

The effective interest rates per annum of deposits with licensed banks and cash and bank balances at the end of the
reporting dates were as follows:
Group Company
2023 2022 2023 2022
Deposits with licensed banks 1.50% to 5.60% 1.18% to 4.70% 2.95% to 5.26% 2.50% to 3.15%
Cash and bank balances Nil to 4.53% Nil to 3.25% Nil to 3.00% Nil to 2.50%
The maturities and repricing of deposits with licensed banks and money market funds as at the end of the reporting dates
were as follows:
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Maturities of 3 months or below
Deposits with licensed banks 596,090 1,169,511 263,958 297,055
1,103,314 1,948,513 285,075 1,004,065
No expected credit loss is recognised arising from cash and cash equivalents as the amount is negligible.
31. SHARE CAPITAL

Group and Company
Number of
Shares RM'000
Issued and fully paid
At 1 October 2021 1,081,017,785 1,375,695
Employees’ share grant scheme - 3,554
At 30 September 2022 1,081,017,785 1,379,249
Employees’ share grant scheme - 3,434
At 30 September 2023 1,081,017,785 1,382,683
(i) During the financial year, the Company transferred 279,863 (2022: 269,122) treasury shares to the eligible senior
management under the employees’ share grant scheme (“ESGS”) established in 2021.
As at 30 September 2023, 654,201 (2022: 374,338) treasury shares were transferred since the commencement of
the ESGS.
(ii) Of the total 1,081,017,785 (2022: 1,081,017,785) issued and fully paid shares, 2,581,799 (2022: 2,861,662) are held
as treasury shares by the Company. As at 30 September 2023, the number of outstanding shares in issue and fully
paid was 1,078,435,986 (2022: 1,078,156,123).
(iii) The holders of shares (except treasury shares) are entitled to receive dividends as declared from time to time and
are entitled to one vote per share without restrictions at meetings of the Company. All shares rank equally with
regard to the Company’s residual assets.
(iv) The shareholders of the Company renewed the authority granted to the Directors to buy back its own shares at the
Annual General Meeting held on 23 February 2023. The Directors of the Company are committed to enhancing the
value of the Company to its shareholders and believe that the buy back plan can be applied in the best interests of
the Company and its shareholders.
(v) The shareholders of the Company via Annual General Meeting held on 23 February 2023 approved the renewal of
the authority for the Directors of the Company to allot and issue new shares in the Company in relation to the dividend
reinvestment plan that provides the shareholders of the Company the option to elect to reinvest, in whole or in part,
their cash dividend entitlements in the new shares of the Company.
186
32. RESERVES
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Non-distributable
Capital reserve 801,085 789,931 - -
Exchange fluctuation reserve 767,421 412,913 - -
Fair value reserve 700,705 750,923 (57,529) 67,753
Retained earnings – cost of treasury shares 22,108 24,504 22,108 24,504
2,291,319 1,978,271 (35,421) 92,257
Distributable
Capital reserve 866,211 864,410 1,087,296 1,087,296
Retained earnings 9,800,631 10,089,616 4,294,059 4,543,212
10,666,842 10,954,026 5,381,355 5,630,508
12,958,161 12,932,297 5,345,934 5,722,765
Included under the non-distributable reserves is an amount of RM22,108,000 (2022: RM24,504,000) which was utilised
for the purchase of the treasury shares and is considered as non-distributable.
Non-distributable capital reserve mainly comprises post-acquisition reserve capitalised by subsidiaries for their bonus
issues and reserve capitalised on redemption of redeemable preference shares by subsidiaries. Distributable capital
reserve comprises surpluses arising from disposals of quoted investments, properties and government acquisitions of
land.
In previous financial year, an amount of RM74.2 million was transferred from retained earnings to capital reserve pursuant
to “The Law of Republic of Indonesia” No. 40/2007 for which a limited liability company is required to allocate a portion
of its net profit in each financial year as reserves. The allocation of net profit was made until the reserves have aggregated
at least 20% of the issued and paid up capital.
Fair value reserve comprises the cumulative net change in the fair value of equity instruments measured at fair value
through other comprehensive income until the investments are derecognised.
33. LEASE LIABILITIES

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Present value of lease liabilities
At beginning of the year 180,836 158,432 150,421 115,942
Remeasurement and modification of leases 2,580 (2) (61,228) 52,697
Addition of new leases 25,800 38,193 247 -
Acquisition through business combination 1,836 - - -
Termination of leases (1,842) (466) - -
Interest expenses (Note 6) 7,058 5,672 5,429 4,252
Payments of lease interest (7,111) (5,569) (5,429) (4,252)
Payments of lease liabilities (24,002) (18,239) (28,526) (18,218)
Currency translation differences (4,026) 2,815 - -
At end of the year 181,129 180,836 60,914 150,421
Lease liabilities are disclosed under:

Non-current liabilities 155,095 158,322 41,680 121,895
Current liabilities 26,034 22,514 19,234 28,526
181,129 180,836 60,914 150,421
Expenses for leases of the Group and the Company are as follows:
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Depreciation of right-of-use assets 58,280 59,223 32,965 22,582
Expense relating to short-term leases 8,191 7,072 194 2,329
Expense relating to leases of low-value assets 367 150 52 55
Expense relating to variable lease payments not
included in the measurement of lease liabilities 26,111 33,435 3,689 8,486
(Gain)/Loss on termination of leases (65) 130 - -
187

Total cash outflows for leases of the Group and the Company are as follows:
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Included in net cash used in operating activities: ¤
Payments relating to short-term leases 8,191 7,072 ¤ 194 2,329
Payments relating to leases of low-value assets 367 150 52 55
Payments relating to variable leases 491 10,897 3,689 8,486
Included in net cash used in financing activities:
Payments of lease liabilities 24,002 18,239 28,526 18,218
Payments of lease interests 7,111 5,569 5,429 4,252
Total cash outflows for leases 40,162 41,927 37,890 33,340
Some lease contracts contain variable payment terms that are linked to performance of the underlying right-of-use assets.
Variable lease payments that depend on performance of the underlying right-of-use assets are recognised in profit or
loss in the period in which the condition that triggers those payments occurs. Several lease contracts of the Group include
extension and termination options. These are used to maximise operational flexibility in terms of managing the assets
used in the Group's operations. Management exercises significant judgement in determining whether these extension
and termination options are reasonably certain to be exercised.
Sensitivity analysis for variable lease payments is not disclosed as the effect is immaterial to the Group.
The followings are the undiscounted potential future rental payments that are not included in the lease term:
Within Five More than
Years Five Years Total
RM'000 RM'000 RM'000
Extension options expected not to be exercised
Group
2023 - - -
2022 2,424 24 2,448
There is no undiscounted potential future rental payment that is not included in the lease term at Company level.
34. DEFERRED INCOME

Group
2023 2022
RM'000 RM'000
Government grants
At cost
Received during the year - 500
Accumulated amortisation
Amortisation charge 8,646 8,653
Carrying amounts 90,289 98,777
Deferred income is disclosed under:

Non-current liabilities 81,633 90,149
Current liabilities 8,656 8,628
90,289 98,777
The subsidiaries, KL-Kepong Edible Oils Sdn Bhd, KL-Kepong Oleomas Sdn Bhd, Palm-Oleo (Klang) Sdn Bhd and Davos
Life Science Sdn Bhd received government grants from Malaysian Palm Oil Board which were conditional upon the
construction of specific projects. The construction of these projects were completed in previous financial years.
A subsidiary, KLK Tensachem SA received government grants from its local government to finance its capital expenditure
in previous financial years.
The government grants are amortised over the useful life of the assets.
188

35. PROVISION FOR RETIREMENT BENEFITS

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Present value of funded obligations 202,537 178,692 - -

Fair value of plan assets (191,147) (168,981) ¤ - -
11,390 9,711 - -
Unfunded obligations 523,912 472,887 41,749 36,653
Present value of net obligations 535,302 482,598 41,749 36,653
Defined benefit obligations

(i) The Group's plantation operations in Malaysia operate defined benefit plans based on the terms of the union's
collective agreements in Malaysia. These retirement benefit plans are unfunded. The benefits payable on retirement
are based on the last drawn salaries, the length of service and the rates set out in the union's collective agreements.
The present value of these unfunded defined benefit obligations as required by MFRS 119 Employee Benefits has
not been used in arriving at the provision as the amount involved is insignificant to the Group and the Company. The
undiscounted value of these unfunded defined benefit obligations was RM43,462,000 (2022: RM38,252,000) for the
Group and RM41,749,000 (2022: RM36,653,000) for the Company as at 30 September 2023. Accordingly, no further
disclosures as required by the standard are made.
(ii) All the plantation subsidiaries in Indonesia operate unfunded defined benefit plans for all its eligible employees. The
obligations of the retirement benefit plans are calculated using the projected unit credit method.
(iii) Subsidiaries in Germany and Italy, KLK Emmerich GmbH and Temix Oleo S.p.A, operate unfunded retirement benefit
plans for their eligible employees. The obligations of the retirement benefit plans are determined by independent
qualified actuaries. The last actuarial valuations were on 30 September 2023.
(iv) Arising from the internal restructuring of the subsidiaries in Switzerland, Kolb Distribution AG and Dr. W. Kolb AG
("Kolb Group") in Europe in financial year 2019, Kolb Group restructured their funded defined benefit plan on 1
January 2020 by transferring all active members and pensioners to a collective pension foundation (“Foundation”)
which guarantees the mandatory minimum benefits defined by the Swiss law and is responsible for the investment
of the assets for a period of at least 5 years from 1 January 2020 to at least 31 December 2024.
In current financial year, the reduction of RM1,058,000 in the defined benefit plan obligation which was disclosed as
negative past service cost arose from changes of assumption used by pension fund.
This funded defined benefit obligation is determined by an independent qualified actuary on an annual basis. The
last actuarial valuation was on 30 September 2023.
The defined benefit plans expose the Group to actuarial risks, such as longevity risk, currency risk, interest rate risk and
market (investment) risk.
These defined benefit plans are fully funded by the Group.
The Group expects RM23,804,000 in contributions to be paid to the defined benefit plans in the next financial year.
189

Present Value Fair Value Present

of Funded Unfunded of Plan Value of Net
Movement in Net Defined Benefit Liabilities Obligations Obligations Assets Obligations
RM'000 RM'000 RM'000 RM'000
Group
At 1 October 2021 184,450 533,433 (158,307) 559,576
Included in profit or loss
Service cost 6,401 44,844 - 51,245
Interest cost/(income) 287 17,033 (246) 17,074
Administration cost 96 - - 96
6,784 61,877 (246) 68,415
Included in other comprehensive income
Remeasurement (gain)/loss
Actuarial (gain)/loss from:
- Financial assumptions (25,381) (74,809) - (100,190)
- Experience assumptions 5,430 (8,339) - (2,909)
Return on plan assets excluding interest income - - 3,528 3,528
(19,951) (83,148) 3,528 (99,571)
Others
Contributions paid by employer - (43,720) (7,437) (51,157)
Employee contributions 5,887 - (5,887) -
(Deposits)/Benefits paid (6,479) - 6,479 -
Acquisition through business combination - 14,983 - 14,983
Currency translation differences 8,001 (10,538) (7,111) (9,648)
At 30 September 2022 178,692 472,887 (168,981) 482,598
Included in profit or loss
Service cost 5,433 35,800 - 41,233
Past service cost (1,058) - - (1,058)
Interest cost/(income) 4,005 24,169 (3,822) 24,352
8,380 59,969 (3,822) 64,527
Included in other comprehensive income
Remeasurement (gain)/loss
Actuarial (gain)/loss from:
- Financial assumptions 2,507 (1,103) - 1,404
- Experience assumptions (3,940) 9,889 - 5,949
Return on plan assets excluding interest income - - 5,586 5,586
(1,433) 8,786 5,586 12,939
Others
Contributions paid by employer - (43,409) (8,256) (51,665)
Employee contributions 6,737 - (6,737) -
(Deposits)/Benefits paid (6,562) - 6,562 -
Acquisition through business combination - 3,733 - 3,733
Currency translation differences 16,723 21,946 (15,499) 23,170
At 30 September 2023 202,537 523,912 (191,147) 535,302
The amount of remeasurement loss of RM11,148,000 (2022: gain RM70,757,000) recognised in the other comprehensive
income is net of deferred tax assets of RM1,791,000 (2022: deferred tax liabilities RM28,814,000) (Note 23).
Group
2023 2022
RM'000 RM'000
Plan assets
Plan assets comprise:
Other assets - unquoted 191,147 168,981
190
The plan assets are managed by the pension foundation in its pool assets and the value of the plan assets are guaranteed
by the pension foundation regardless of the financial market performance and disclosed as "Other Assets – Unquoted".
Company
2023 2022
RM'000 RM'000
Unfunded obligations
Movements in the unfunded defined benefit obligations
Benefits paid (4,311) (6,225)
Expense recognised in profit or loss
Service cost 9,407 12,388
Group
2023 2022
% %
Actuarial assumptions (expressed as weighted average)
Principal assumptions of the unfunded plans used by plantation
subsidiaries in Indonesia:
Discount rate 7.0 7.0 to 7.5
Future salary increases 6.0 to 7.5 6.0 to 7.5
Principal actuarial assumptions of the unfunded plan operated by the

subsidiary in Germany:
Discount rate 4.2 3.9
Future salary increases 3.0 3.0
Future pension increases 2.3 2.3
Principal actuarial assumptions of the unfunded plan operated by the

subsidiary in Italy:
Discount rate 4.0 -
Future salary increases 2.6 -
Future pension increases 2.6 -
Principal actuarial assumptions of the funded plan operated by the

subsidiary in Switzerland
Discount rate 1.9 2.1
Future salary increases 2.5 2.5
As at end of the reporting period, the weighted average duration of the funded defined benefit obligation was 11.9 years
(2022: 11.9 years).
Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other
assumptions constant, would have affected the defined benefit obligation by the amount shown below:
Group
Defined Benefit Obligation
Increase Decrease
RM'000 RM'000
2023
Discount rate (0.25% movement) (19,642) 21,423
Future salary growth (0.25% movement) 10,112 (8,789)
Life expectancy (1 year movement) 14,376 (14,770)
2022
Discount rate (0.25% movement) (22,557) 26,128
Future salary growth (0.25% movement) 14,908 (12,458)
Life expectancy (1 year movement) 14,089 (14,412)
Although the analysis does not account for the full distribution of cash flows expected under the plans, it does provide an
approximation of the sensitivity of the assumptions shown.
191

36. BORROWINGS
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Non-current
Secured
Term loan 6,670 10,421 - -
Unsecured
Revolving credit 71,633 - - -
Term loans 1,324,307 1,598,440 ¤1,080,000 1,200,000
Islamic medium term notes 5,600,000 5,600,000 5,600,000 5,600,000
6,995,940 7,198,440 6,680,000 6,800,000
7,002,610 7,208,861 6,680,000 6,800,000
Current
Secured
Term loan 8,488 5,754 - -
Unsecured
Bank overdrafts 84,129 170,294 - -
Bankers' acceptance 323,589 280,564 - -
Export credit refinancing 3,666 - - -
Revolving credit 846,999 416,938 150,000 -
Trade financing 1,285,356 928,736 - -
Term loans 339,138 371,141 120,000 -
2,882,877 2,167,673 270,000 -
2,891,365 2,173,427 270,000 -
Total borrowings 9,893,975 9,382,288 6,950,000 6,800,000
(a) During the financial year ended 30 September 2015, the Company had issued RM1.1 billion 10 years Ringgit Sukuk
Ijarah Islamic Medium Term Notes under the RM1.6 billion Multi-Currency Sukuk Ijarah and/or Wakalah Islamic Medium
Term Notes Programme ("1st Programme") at par with a profit rate of 4.58% per annum.
During the financial year ended 30 September 2016, the Company had issued the balance of the 1st Programme of
RM500 million 10 years Ringgit Sukuk Ijarah Islamic Medium Term Notes at par with a profit rate of 4.65% per annum.
Salient features of the 1st Programme are as follows:

 The 1st Programme shall comprise Ringgit denominated Islamic Medium Term Notes ("Ringgit Sukuk") and non-
Ringgit denominated Islamic Medium Term Notes ("Non-Ringgit Sukuk") issuances.
 The aggregate outstanding nominal value of the Ringgit Sukuk and Non-Ringgit Sukuk issued under the 1st
Programme shall not exceed RM1.6 billion (or its equivalent in foreign currencies).
 The tenure of the 1st Programme is 12 years from the date of the first issuance under the programme. The tenure
of the Ringgit Sukuk/Non-Ringgit Sukuk issued under the 1st Programme shall be more than 1 year and up to 12
years, provided that the maturity of the Ringgit Sukuk/Non-Ringgit Sukuk shall not exceed the tenure of the 1st
Programme.
 The Ringgit Sukuk/Non-Ringgit Sukuk under the 1st Programme may be issued under the Shariah principle(s) of
Ijarah and/or Wakalah Bi Al-Istithmar.
 The expected periodic distribution rate (under the principle of Wakalah Bi Al-Istithmar) or periodic distribution rate
(under the principle of Ijarah) (if any) shall be determined at the point of issuance. For the Ringgit Sukuk/Non-Ringgit
Sukuk with periodic distributions, the profit is payable semi-annually in arrears from the date of issuance of the
Ringgit Sukuk/Non-Ringgit Sukuk with the last periodic distribution to be made on the relevant maturity dates.
 Debt-to-equity ratio of the Group shall be maintained at not more than one time throughout the tenure of the 1st
Programme.
(b) During the financial year ended 30 September 2019, the Company had issued 2 tranches of RM1.0 billion each of Sukuk
Wakalah Islamic Medium Term Notes (“Sukuk Wakalah”) under the RM2.0 billion Sukuk Wakalah Islamic Medium Term
Notes Programme ("2nd Programme"), at par with profit rate of 3.75% per annum for the 10 years tenure tranche and
3.95% per annum for the 15 years tenure tranche.
192

Salient features of the 2nd Programme are as follows:

 Total aggregate outstanding nominal value of the Sukuk Wakalah issued under the 2nd Programme shall not exceed
RM2.0 billion.
 The tenure of the 2nd Programme is 20 years from the date of the first issuance under the programme. The tenure
of the Sukuk Wakalah issued under the 2nd Programme shall be more than 1 year and up to 20 years, provided that
the maturity of the Sukuk Wakalah shall not exceed the tenure of the 2nd Programme.
 The Sukuk Wakalah under the 2nd Programme shall be issued under the Shariah principle of Wakalah Bi Al-Istithmar.
 The periodic distribution rate shall be determined at the point of issuance. For the Sukuk Wakalah with periodic
distributions, the profit is payable semi-annually in arrears from the date of issuance.
 Debt-to-equity ratio of the Group shall be maintained at not more than one time throughout the tenure of the 2nd
Programme.
(c) During the financial year ended 30 September 2022, the Company had issued 2 tranches of RM1.5 billion 10 years and
RM500 million 15 years Sukuk Wakalah Islamic Medium Term Notes (“Sukuk Wakalah”) under the RM2.0 billion Sukuk
Wakalah Islamic Medium Term Notes Programme ("3rd Programme"), at par with profit rate of 4.17% per annum for the
10 years tenure tranche and 4.55% per annum for the 15 years tenure tranche.
Salient features of the 3rd Programme are as follows:

 Total aggregate outstanding nominal value of the Sukuk Wakalah issued under the 3rd Programme shall not exceed
RM2.0 billion.
 The tenure of the 3rd Programme is 30 years from the date of the first issuance under the programme. The tenure
of the Sukuk Wakalah issued under the 3rd Programme shall be more than 1 year and up to 30 years, provided that
the maturity of the Sukuk Wakalah shall not exceed the tenure of the 3rd Programme.
 The Sukuk Wakalah under the 3rd Programme shall be issued under the Shariah principle of Wakalah Bi Al-Istithmar.
 The periodic distribution rate shall be determined at the point of issuance. For the Sukuk Wakalah with periodic
distributions, the profit is payable semi-annually in arrears from the date of issuance.
 Debt-to-equity ratio of the Group shall be maintained at not more than one time throughout the tenure of the 3rd
Programme.
(d) During the financial year ended 30 September 2021, the Company had drawndown a term loan of RM1.2 billion. This
term loan is unsecured and bears a fixed interest rate of 3.40% per annum.
(e) The secured term loan of the Group is secured by way of a fixed charge on the property, plant and equipment of overseas
subsidiaries with carrying amount of RM147,670,000 (2022: RM115,478,000) as at 30 September 2023.
(f) Certain unsecured term loans, bank overdrafts and revolving credit are supported by corporate guarantees of RM1,095.6
million (2022: RM901.5 million) issued by the Company. The bank overdraft facilities are renewable annually.
(g) The interest/profit rates per annum applicable to borrowings for the year were as follows:
Group Company
2023 2022 2023 2022
Bank overdrafts 0.70% to 4.67% 0.70% to 0.80% - -

Term loans 0.71% to 7.00% 0.71% to 4.38% 3.40% 3.40%
Trade financing 2.02% to 6.22% 0.49% to 4.06% - -
Export credit refinancing 3.30% to 3.55% - - -
Bankers' acceptance 1.84% to 3.97% 1.90% to 3.56% - -
Revolving credit 1.43% to 6.69% 0.75% to 4.05% 3.91% -
Islamic medium term notes 3.75% to 4.65% 3.75% to 4.65% 3.75% to 4.65% 3.75% to 4.65%
(h) An amount of RM1,199,872,000 (2022: RM1,164,195,000) of the Group's borrowings consist of floating rate borrowings,
of which interest rates reprice within a year.
The Company did not have any floating rate borrowings as at end of both the financial years.
193

37. TRADE PAYABLES

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Trade payables 817,728 1,000,516 8,043 7,612
Included in the trade payables of the Group are amounts owing to related parties of RM186,003,000 (2022:
RM57,769,000).
The normal trade credit terms granted to the Group range from 5 to 90 (2022: 5 to 90) days.
38. OTHER PAYABLES

Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Other payables 455,952 512,962 42,383 38,887
Accruals 684,088 582,325 100,054 146,985
Indirect tax payables 12,315 10,604 - -
1,152,355 1,105,891 ¤ 142,437 185,872
39. RELATED PARTY TRANSACTIONS

(a) The Company has a controlling related party relationship with all its subsidiaries. Significant inter-company transactions
of the Company are as follows (in addition to related party disclosures mentioned elsewhere in the financial statements):
Company
2023 2022
RM’000 RM’000
Sale of goods to subsidiaries 594,591 620,829
Purchase of goods from subsidiaries 16,774 19,186
Commission received from a subsidiary 1,319 2,461
Interest received from subsidiaries 91,177 77,959
Interest paid to subsidiaries 979 764
Rental received from subsidiaries 839 713
Management fees paid to subsidiaries 13,061 13,244
License fees paid to subsidiaries 23,575 41,727
Rental paid to a subsidiary 1,148 1,148
(b) Significant related party transactions

Set out below are the significant related party transactions which are carried out on mutually agreed terms for the financial
year (in addition to related party disclosures mentioned elsewhere in the financial statements).
Group Company
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
(i) Transactions with associates and joint ventures
Sale of goods 592,225 712,886 - -
Purchase of goods 1,738,845 2,152,219 ¤ 2,081 1,553
Service charges paid 1,944 1,510 1,056 930
Research and development services paid 16,857 15,803 16,857 15,803
(ii) Transactions with companies in which certain

Directors are common directors and/or have
direct or deemed interest
Sale of goods
P.T. Satu Sembilan Delapan 38,908 34,673 - -
Siam Taiko Marketing Co Ltd 1,406 4,855 - -
Taiko Marketing Sdn Bhd 11,429 13,685 - -
Taiko Marketing (Singapore) Pte Ltd 1,035 2,075 - -
Storage tanks rental received

194
Group Company
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
(ii) Transactions with companies in which certain
Directors are common directors and/or have
direct or deemed interest
Purchase of goods
Borneo Taiko Clay Sdn Bhd 6,117 3,931 - -
Bukit Katho Estate Sdn Bhd 8,261 11,314 8,261 11,314
CCM Chemicals Sdn Bhd 1,409 162 - -
Kampar Rubber & Tin Co Sdn Bhd 12,239 15,309 12,239 15,309
Kekal & Deras Sdn Bhd 2,607 4,057 2,607 4,057
Ladang Tai Tak (Kota Tinggi) Sdn Bhd 10,624 4,210 - -
Malay Rubber Plantations (M) Sdn Bhd 14,114 18,746 14,114 18,746
P.T. Agro Makmur Abadi 85,275 118,036 - -
P.T. Bumi Karyatama Raharja 1,007 - - -
P.T. Java Taiko Mineralindo 2,586 3,604 - -
P.T. Safari Riau 44,312 55,444 - -
P.T. Satu Sembilan Delapan 25,002 24,308 - -
Taiko Acid Works Sdn Bhd 1,010 882 - -
Taiko Clay Marketing Sdn Bhd 6,881 4,057 - -
Taiko Drum Industries Sdn Bhd 1,649 3,230 - -
Management fees paid

Farming Management Services Pty Ltd 3,609 3,951 - -
Aircraft operating expenses and

management services paid
Smooth Route Sdn Bhd 2,068 1,666 2,068 1,666
IT Services paid
E-Komoditi Sdn Bhd - 39 - 39
(iii) Transactions between subsidiaries and

non-controlling interests
Sale of goods
Mitsui & Co Ltd 440,834 458,878 - -
Purchase of goods
Mitsubishi Gas Chemical Singapore Pte Ltd - 10,738 - -
P.T. Kimia Tirta Utama 23,423 - - -
P.T. Sawit Asahan Indah 2,664 - - -
P.T. Tanjung Bina Lestari 10,468 - - -
P.T. Tanjung Sarana Lestari 1,480,509 1,531,111 - -
Rental of land paid

PT Perkebunan Nusantara II 32,259 37,768 - -
40. CAPITAL COMMITMENTS

Group Company
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
Capital expenditure
Approved and contracted 1,015,931 790,545 10,578 2,355
Approved but not contracted 1,557,630 2,065,139 156,348 158,336
2,573,561 2,855,684 166,926 160,691
195

41. LEASE COMMITMENTS

Lease as a lessor
The Group leases out some of its land, buildings, plant and machinery to third parties. The Group classified these leases
as operating lease because they do not transfer substantially all of the risks and rewards incidental to the ownership of
these assets. The following is the maturity analysis of the undiscounted lease payments to be received after the reporting
date.
Group Company
2023 2022 2023 2022
RM'000 RM'000 RM'000 RM'000
Within 1 year 39,218 49,347 2,694 2,721

Between 1 to 2 years 16,286 31,780 2,010 2,672
Between 2 to 3 years 6,679 11,430 22 1,989
Between 3 to 4 years 5,018 5,891 - -
Between 4 to 5 years 153 4,987 - -
More than 5 years 124 427 - -
67,478 103,862 4,726 7,382
42. FINANCIAL GUARANTEE CONTRACTS

(a) The Group provides financial guarantee contracts of RM9.3 million (2022: RM18.5 million) to certain financial institutions
for loan facilities granted to plasma plantation projects as at 30 September 2023.
(b) The Company provides financial guarantee contracts of RM1,095.6 million (2022: RM901.5 million) to certain financial
institutions for credit facilities utilised by certain subsidiaries as at 30 September 2023.
(c) The Company has undertaken to provide financial support to certain subsidiaries to enable them to continue to operate
as going concerns.
43. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

(a) The names of subsidiaries, associates and joint ventures are detailed below:
Effective
Principal Ownership
Country Of Country Of Interest and
Subsidiaries Incorporation Operation Voting Interest Principal Activities
2023 2022
PLANTATION
PENINSULAR MALAYSIA
Uni-Agro Multi Plantations Sdn Bhd Malaysia Malaysia 51 51 Plantation
Betatechnic Sdn Bhd Malaysia Malaysia 100 100 Operating biogas capture plants
Gunong Pertanian Sdn Bhd Malaysia Malaysia 100 100 Extraction of crude palm oil
Taiko Plantations Sendirian Berhad Malaysia Malaysia 100 100 Management of plantation
Golden Complex Sdn Bhd Malaysia Malaysia 100 100 Investment holding
Jasachem Sdn Bhd Malaysia Malaysia 100 100 Investment holding
KL-Kepong Plantation Holdings Sdn Bhd Malaysia Malaysia 100 100 Investment holding
SABAH
Berakan Maju Sdn Bhd Malaysia Malaysia 95 95 Plantation
Bornion Estate Sdn Bhd Malaysia Malaysia 63 63 Plantation
Dynasive Enterprise Sdn Bhd Malaysia Malaysia 95 95 Investment holding
Excellent Challenger (M) Sdn Bhd Malaysia Malaysia 95 95 Plantation
Gunaria Sdn Bhd Malaysia Malaysia 95 95 Investment holding
KLK Agri Oils Sdn Bhd Malaysia Malaysia 95 95 Plantation and kernel crushing
KLK Sawit Nusantara Berhad Malaysia Malaysia 95 95 Plantation and investment holding
KL-Kepong (Sabah) Sdn Bhd Malaysia Malaysia 100 100 Plantation
Minat Teguh Sdn Bhd Malaysia Malaysia 95 95 Investment holding
Rakanan Jaya Sdn Bhd Malaysia Malaysia 95 95 Plantation
196
Effective
Principal Ownership
2023 2022
PLANTATION
SABAH
Ratus Sempurna Sdn Bhd Malaysia Malaysia 95 95 Investment holding
Sabah Cocoa Sdn Bhd * Malaysia Malaysia 99 100 Plantation
Sabah Holdings Corporation Sdn Bhd Malaysia Malaysia 70 70 Investment holding
Akrab Perkasa Sdn Bhd Malaysia Malaysia - 95 Dissolved
(In Member’s Voluntary Liquidation) †
Desa Talisai Sdn Bhd Malaysia Malaysia 95 95 Dormant
Desa Talisai Palm Oil Mill Sdn Bhd Malaysia Malaysia 95 95 Dormant
KLK Biofuel Sdn Bhd † Malaysia Malaysia 95 95 Dormant
Sabang Mills Sdn Bhd Malaysia Malaysia 95 95 Dormant
Sijas Plantations Sdn Bhd Malaysia Malaysia 95 95 Dormant
INDONESIA
P.T. ADEI Plantation & Industry † Indonesia Indonesia 95 95 Plantation, kernel crushing, refining
and sales of palm products
P.T. Alam Karya Sejahtera AKS † Indonesia Indonesia 62 62 Plantation
P.T. Bumi Makmur Sejahtera Jaya † Indonesia Indonesia 95 95 Plantation
P.T. Hutan Hijau Mas † Indonesia Indonesia 92 92 Plantation
P.T. Indonesia Plantation Synergy † Indonesia Indonesia 96 96 Plantation
P.T. Jabontara Eka Karsa † Indonesia Indonesia 95 95 Plantation
P.T. Karya Bakti Sejahtera Agrotama † Indonesia Indonesia 95 95 Plantation
P.T. Karya Makmur Abadi † Indonesia Indonesia 100 100 Plantation
P.T. Langkat Nusantara Kepong † Indonesia Indonesia 60 60 Plantation
P.T. Malindomas Perkebunan † Indonesia Indonesia 92 92 Plantation
P.T. Menteng Jaya Sawit Perdana † Indonesia Indonesia 100 100 Plantation
P.T. Mulia Agro Permai † Indonesia Indonesia 100 100 Plantation
P.T. Parit Sembada † Indonesia Indonesia 95 90 Plantation
P.T. Pinang Witmas Sejati † Indonesia Indonesia 60 60 Plantation
P.T. Prima Alumga † Indonesia Indonesia 96 96 Plantation
P.T. Primabahagia Permai † Indonesia Indonesia 96 96 Plantation
P.T. Putra Bongan Jaya † Indonesia Indonesia 100 95 Plantation
P.T. Sinergi Agro Industri † Indonesia Indonesia 96 96 Plantation
P.T. Steelindo Wahana Perkasa † Indonesia Indonesia 95 95 Plantation, kernel crushing,
refining, manufacturing and
sales of palm products
P.T. Sekarbumi Alamlestari † Indonesia Indonesia 65 65 Plantation
P.T. Applied Agricultural Resources Indonesia Indonesia 100 100 Agronomic service and research
Indonesia †
P.T. KLK Agriservindo † Indonesia Indonesia 100 100 Management of plantation
P.T. Anugrah Surya Mandiri † Indonesia Indonesia - 95 Dissolved
SINGAPORE
Collingwood Plantations Pte Ltd † Singapore Singapore 82 82 Investment holding
KLK Agro Plantations Pte Ltd † Singapore Singapore 100 100 Investment holding
197

Effective
Principal Ownership
2023 2022
PLANTATION
PAPUA NEW GUINEA
Ang Agro Forest Management Ltd †∆ Papua New Papua New 100 82 Dormant
Guinea Guinea
MAURITIUS
Liberian Palm Developments Limited †† Mauritius Mauritius 100 100 Investment holding
EBF (Mauritius) Limited †† Mauritius Mauritius 100 100 Investment holding
EPO (Mauritius) Limited †† Mauritius Mauritius 100 100 Investment holding
LIBERIA
LIBINC Oil Palm Inc † Liberia Liberia 100 100 Plantation
Equatorial Palm Oil (Liberia) Incorporated † Liberia Liberia 100 100 Management of plantation
Liberian Agriculture Developments Liberia Liberia 100 100 Dormant
Corporation †
MANUFACTURING
OLEOCHEMICALS
Palm-Oleo Sdn Bhd Malaysia Malaysia 80 80 Manufacturing and sale of
oleochemicals
Palm-Oleo (Klang) Sdn Bhd Malaysia Malaysia 80 80 Manufacturing and sale of
oleochemicals
KSP Manufacturing Sdn Bhd Malaysia Malaysia 80 80 Renting of properties
Palmamide Sdn Bhd Malaysia Malaysia 80 80 Renting of properties
KL-Kepong Oleomas Sdn Bhd Malaysia Malaysia 96 96 Manufacturing and sale of
oleochemicals
Davos Life Science Sdn Bhd Malaysia Malaysia 100 100 Manufacturing of palm
phytonutrients and other
palm derivatives
KLK Bioenergy Sdn Bhd Malaysia Malaysia 96 96 Manufacturing of biodiesel
KLK Emmerich GmbH # Germany Germany 100 100 Manufacturing and sale of
oleochemicals
Taiko Palm-Oleo (Zhangjiagang) People's People's 80 80 Manufacturing and sales of
Co Ltd † Republic Republic oleochemicals
of China of China
Shanghai Jinshan Jingwei Chemical People's People's 100 100 Renting of property
Co Ltd † Republic Republic
of China of China
P.T. KLK Dumai † Indonesia Indonesia 100 100 Manufacturing of basic organic
chemicals from agricultural
products
KLK Oleo (Shanghai) Co Ltd † People's People's 100 100 Trading and distribution of
Republic Republic oleochemicals
of China of China
KLK OLEO Americas Inc †† United States United States 100 100 Trading and distribution of
of America of America oleochemicals
KLK Tensachem SA † Belgium Belgium 100 100 Manufacturing of alcohol ether
sulphates, alcohol sulphates
and sulphonic acids
KL-Kepong Industrial Holdings Sdn Bhd Malaysia Malaysia 100 100 Investment holding
KLK Premier Capital Limited British Virgin Malaysia 80 80 Investment holding
Islands
198
Effective
Principal Ownership
2023 2022
MANUFACTURING
OLEOCHEMICALS
KLK Indahmas Sdn Bhd Malaysia Malaysia 100 100 Manufacturing of oleochemicals
and property investment
Capital Glogalaxy Sdn Bhd Malaysia Malaysia 80 80 Trading of oleochemicals and
hedging of future contracts
related to these products
Temix Oleo S.p.A † Italy Italy 90 - Production and distribution of fatty
alcohols and derivatives, fatty
acids, fatty esters and other
chemicals
P.T. Prima Dumai Indobulking † Indonesia Indonesia 100 100 Dormant
NON-IONIC SURFACTANTS AND ESTERS

Kolb Distribution AG # Switzerland Switzerland 100 100 Distribution of non-ionic
surfactants and esters
Dr. W. Kolb AG # Switzerland Switzerland 100 100 Manufacturing of non-ionic
Dr. W. Kolb Netherlands BV # Netherlands Netherlands 100 100 Manufacturing of non-ionic
Kolb Distribution BV †† Netherlands Netherlands 100 100 Distribution of non-ionic
Kolb France SARL †† France France 100 100 Distribution of non-ionic
Dr. W. Kolb Deutschland GmbH †† Germany Germany 100 100 Distribution of non-ionic
KLK Kolb Specialties BV # Netherlands Netherlands 100 100 Manufacturing and distribution of
non-ionic surfactants and esters
KLK Chemicals Holding Netherlands BV †† Netherlands Netherlands 100 100 Investment holding
REFINERIES AND KERNEL CRUSHING

KL-Kepong Edible Oils Sdn Bhd Malaysia Malaysia 100 100 Refining, manufacturing and sale
of palm and shortening products
Fajar Palmkel Sdn Berhad Malaysia Malaysia 100 100 Kernel crushing, refining and
manufacturing and sales of
palm and cocoa butter
substitutes products
KLK Premier Oils Sdn Bhd Malaysia Malaysia 100 100 Kernel crushing, refining,
manufacturing and sale of
palm products
P.T. Perindustrian Sawit Synergi † Indonesia Indonesia 100 99 Kernel crushing, refining,
manufacturing and sale of palm
products and oleochemicals
Astra-KLK Pte Ltd # Singapore Singapore 51 51 Marketing of refined palm oil
products and provision of
logistics services related to
palm products
KLK Plantations and Trading Pte Ltd Singapore Singapore 100 100 Management of plantation,
(formerly known as Taiko Plantations marketing and trading of palm
Pte Ltd) # oil refined products
KLK Golden Oils Sdn Bhd (formerly known Malaysia Malaysia 100 100 Refining, manufacturing and sale of
as KLK Global Resourcing Sdn Bhd) palm oil and specialty fat products
Golden Yield Sdn Bhd Malaysia Malaysia 100 100 Dormant
199

Effective
Principal Ownership
2023 2022
MANUFACTURING
GLOVE PRODUCTS
KL-Kepong Rubber Products Sdn Bhd Malaysia Malaysia 100 100 Manufacturing and trading
in rubber products
Masif Latex Products Sdn Bhd Malaysia Malaysia - 100 Struck off
PARQUET FLOORING
KLK Hardwood Flooring Sdn Bhd Malaysia Malaysia 100 100 Manufacturing and marketing
of parquet flooring products
B.K.B. Flooring Sdn Bhd Malaysia Malaysia 100 100 Dormant
(in strike off process) †
NUTRACEUTICAL, COSMETOCEUTICAL
& PHARMACEUTICAL PRODUCTS
Davos Life Science Pte Ltd † Singapore Singapore 100 100 Sales of pharmaceutical
and bio-pharmaceutical
intermediates and fine chemicals
and investment holding
Biogene Life Science Pte Ltd † Singapore Singapore 100 100 Research collaboration and
investment holding
Centros Life Science Pte Ltd † Singapore Singapore 100 100 Sales of pharmaceutical
and bio-pharmaceutical
intermediates and fine chemicals
STORAGE & DISTRIBUTION

Stolthaven (Westport) Sdn Bhd Malaysia Malaysia 51 51 Storing and distribution of
bulk liquid
PROPERTY
Aura Muhibah Sdn Bhd Malaysia Malaysia 60 60 Property development
Colville Holdings Sdn Bhd Malaysia Malaysia 100 100 Property development
KL-K Holiday Bungalows Sendirian Berhad Malaysia Malaysia 100 100 Operating holiday bungalows
KL-Kepong Complex Sdn Bhd Malaysia Malaysia 100 100 Property development
KL-Kepong Country Homes Sdn Bhd Malaysia Malaysia 100 100 Property development
KL-Kepong Property Development Sdn Bhd Malaysia Malaysia 100 100 Property development
KL-Kepong Property Management Sdn Bhd Malaysia Malaysia 100 100 Property management and
property development
KLK Land Sdn Bhd Malaysia Malaysia 100 100 Investment holding
Kompleks Tanjong Malim Sdn Bhd Malaysia Malaysia 80 80 Property development
Palermo Corporation Sdn Bhd Malaysia Malaysia 100 100 Property development
Scope Energy Sdn Bhd Malaysia Malaysia 60 60 Property development
Selasih Ikhtisas Sdn Bhd Malaysia Malaysia 100 100 Property development
KLK Park Homes Sdn Bhd Malaysia Malaysia 100 100 Property development
Menara KLK Sdn Bhd Malaysia Malaysia 100 100 Investment property
KLK Retail Centre Sdn Bhd Malaysia Malaysia 100 100 Investment property
KLK Landscape Services Sdn Bhd Malaysia Malaysia 100 100 Dormant
KLK Coalfields Sdn Bhd Malaysia Malaysia 100 100 Dormant
KLK Management Services Sdn Bhd Malaysia Malaysia 100 100 Dormant
INVESTMENT HOLDING
Ablington Holdings Sdn Bhd Malaysia Malaysia 100 100 Investment holding
KL-Kepong Equity Holdings Sdn Bhd Malaysia Malaysia 100 100 Investment holding
200
Effective
Principal Ownership
2023 2022
INVESTMENT HOLDING
Quarry Lane Sdn Bhd Malaysia Malaysia 100 100 Investment holding
KL-Kepong International Ltd †† Cayman Cayman 100 100 Investment holding
Islands Islands
KLK Overseas Investments Limited †† British Virgin British Virgin 100 100 Investment holding
Islands Islands
KLKI Holdings Limited † United United 100 100 Investment holding
Kingdom Kingdom
Draw Fields Sdn Bhd Malaysia Malaysia 100 100 Dormant
Ladang Perbadanan-Fima Berhad Malaysia Malaysia 100 100 Dormant
Ortona Enterprise Sdn Bhd Malaysia Malaysia 100 100 Dormant
OTHERS
Somerset Cuisine Limited † United United 100 100 Manufacturing of jams and
Kingdom Kingdom preserves
KLK Farms Pty Ltd † Australia Australia 100 100 Farming
KLK Assurance (Labuan) Limited † Malaysia Malaysia 100 100 Offshore captive insurance
# Companies audited by member firms of BDO International.

†† These companies are not required to be audited in the country of incorporation. The results of these companies are consolidated
based on the unaudited financial statements.
† Companies not audited by BDO PLT.
∆ The Group’s effective shareholdings in Ang Agro Forest Management Ltd (“AAFM”) increased from 82% to 100% upon the
completion of conversion of 19,365,705 units of redeemable convertible preference shares in AAFM to 19,365,705 units of ordinary
shares on 27 July 2023.
* The Group’s effective shareholdings in Sabah Cocoa Sdn Bhd (“SC”) decreased from 100% to 99% upon completion of conversion
of 20,000,000 units of redeemable convertible preference shares (“RCPS”) in SC to 20,000,000 units of ordinary shares on 27 July
2023. The RCPS were held by a 70% owned subsidiary, Sabah Holdings Corporation Sdn Bhd.
The Company has undertaken to provide financial support to certain subsidiaries to enable them to continue to operate
as going concerns.
Country of Effective
Incorporation/ Ownership
Principal Country Interest and
Associates of Operation Voting Interest Principal Activities
2023 2022
Applied Agricultural Resources Sdn Bhd Malaysia 50 50 Agronomic service and research
FKW Global Commodities (Pvt) Limited Pakistan 30 30 Trading in commodities
Kumpulan Sierramas (M) Sdn Bhd Malaysia 50 50 Property development
Malaysia Pakistan Venture Sdn Bhd Malaysia 38 38 Investment holding
MAPAK Edible Oils (Private) Limited Pakistan 30 30 Manufacturing and marketing of palm
and other soft oils
Phytopharma Co Ltd Japan 25 23 Import, export and distribution of herbal
medicine and raw materials thereof, raw
materials of pharmaceutical
products and cosmetic products
Synthomer plc United 27 26 Speciality chemicals manufacturer
Kingdom
Joint Ventures
P.T. Kreasijaya Adhikarya Indonesia 50 50 Refining of crude palm oil and
bulking installation
Rainbow State Limited British Virgin 50 50 Owning and operating of aircraft
Islands
201

(b) Acquisitions and disposals of subsidiaries

2023
Acquisition of a subsidiary
On 31 March 2023, the Company’s wholly-owned subsidiary, KLK Emmerich GmbH ("KLK Emmerich") had completed
the acquisition of 90% equity interest in Temix Oleo S.p.A ("Temix") for a cash consideration of RM143.3 million.
The acquisition represents an opportunity for the Group to diversify its products, access to key customers and alignment
to product specialisation strategy across European operation.
The recognised amounts of assets acquired and liabilities assumed at the date of acquisition were:
RM'000
Property, plant and equipment 80,259

Right-of-use assets 1,804
Intangible assets 38,117
Derivative financial assets 1,878
Inventories 64,018
Trade and other receivables 126,907
Cash and bank balances 34,453
Trade and other payables (111,178)
Tax payable (9,829)
Borrowings (49,349)
Deferred tax liabilities (12,239)
Provision for retirement benefits (3,733)
Lease liabilities (1,836)
Total identifiable net assets at fair value 159,272
Purchase consideration settled in cash and cash equivalents 143,345

Non-controlling interests 15,927
Fair value of identifiable net assets 159,272

Cash and cash equivalents acquired (34,453)
Net cash outflow arising from acquisition of a subsidiary 108,892
In the 6 months to 30 September 2023, Temix contributed revenue of RM214.1 million and loss of RM462,000.
If the acquisition had occurred on 1 October 2022, Management estimated that consolidated revenue would have been
RM23.944 billion and consolidated profit for the financial year ended 30 September 2023 would have been RM997.3
million.
Changes in shareholdings in subsidiaries

(i) On 14 February 2023, the Company's wholly-owned subsidiary, KL-Kepong Plantation Holdings Sdn Bhd, had
completed the acquisition of 5% equity interest in P.T. Putra Bongan Jaya ("PBJ") for a cash consideration of RM8.0
million.
PBJ became a wholly-owned subsidiary of the Group upon completion of the acquisition.
(ii) On 10 April 2023, the Company's wholly-owned subsidiary, KLK Plantations and Trading Pte Ltd (formerly known as
Taiko Plantations Pte Ltd) had completed the acquisition of 1% equity interest in P.T. Perindustrian Sawit Synergi
(“PSS”) for a cash consideration of RM23.9 million.
Following the completion of acquisition, PSS is a wholly-owned subsidiary of the Group.
(iii) On 28 August 2023, the Company's wholly-owned subsidiary, KLK Plantations and Trading Pte Ltd (formerly known
as Taiko Plantations Pte Ltd) had completed the acquisition of 5% equity interest in P.T. Parit Sembada ("PS") for a
cash consideration of RM7.6 million.
After completion of acquisition, the Group’s effective shareholdings in PS had increased from 90% to 95%.
202

2022
Acquisition of a subsidiary
On 1 October 2021, the Company’s wholly-owned subsidiary, KLK Plantations and Trading Pte Ltd (formerly known as
Taiko Plantations Pte Ltd) had completed the acquisition of 60% equity interest in P.T. Pinang Witmas Sejati (“PWS”) for
a cash consideration of RM319.8 million.
The recognised amounts of assets acquired and liabilities assumed at the date of acquisition were:
RM'000
Property, plant and equipment 668,279

Right-of-use assets 17,377
Inventories 5,069
Trade and other receivables 6,768
Cash and bank balances 15,948
Trade and other payables (12,428)
Contract liabilities (1,745)
Tax payable (5,228)
Borrowings (7,005)
Provision for retirement benefits (14,983)
Deferred tax liabilities (139,081)
Total identifiable net assets at fair value 532,971

Non-controlling interests 213,189
Fair value of identifiable net assets 532,971

Cash and cash equivalents acquired (15,948)
Net cash outflow arising from acquisition of a subsidiary 303,834
In the 12 months to 30 September 2022, PWS contributed revenue of RM224.6 million and profit of RM75.7 million.
Disposal of a subsidiary
On 30 August 2022, the Company’s wholly-owned subsidiary, Liberian Palm Developments Limited ("LPDL") had
disposed the entire equity interest in Liberia Forest Products Inc ("LFPI") for total cash considerations of RM1.97 million.
The amounts of assets and liabilities derecognised assumed at the date of disposal were:
RM'000
Property, plant and equipment 3

Other receivables 15
Cash and bank balances 7
Other liabilities (337)
Exchange fluctuation reserve 164
Total net liabilities of a subsidiary disposed (148)
Sales consideration received in cash and cash equivalent 1,971

Total net liabilities of a subsidiary disposed 148
Surplus on disposal of shares in a subsidiary 2,119
Sales consideration received in cash and cash equivalent 1,971

Cash and cash equivalent of a subsidiary disposed (7)
Net cash inflow arising from disposal of a subsidiary 1,964
Changes in shareholdings in subsidiaries

(i) On 8 November 2021, the Company’s wholly-owned subsidiary, KL-Kepong Industrial Holdings Sdn Bhd entered into
a Share Purchase Agreement with Mitsui & Co Ltd ("Mitsui"), a company incorporated in Japan, to dispose a 20%
equity interest in Capital Glogalaxy Sdn Bhd ("CGSB") to Mitsui for cash considerations of RM10. Upon the
completion of disposal of shares on 17 January 2022, the Group’s effective shareholdings in CGSB reduced to 80%.
203

(ii) On 18 March 2022, the Company’s wholly-owned subsidiary, Golden Complex Sdn Bhd completed the acquisition of
5% equity interest in P.T. Applied Agricultural Resources Indonesia (“AARI”) for a cash consideration of RM480,000.
After the completion of acquisition, AARI is a wholly-owned subsidiary of the Group.
(iii) On 27 April 2022, the Company had completed the acquisition of 15% equity interest in KLK Premier Oils Sdn Bhd
("KLKPO") for a cash consideration of RM26.4 million. KLKPO owns 100% equity interest in Golden Yield Sdn Bhd
("GYSB").
Following the completion of acquisition, both KLKPO and GYSB are wholly-owned subsidiaries of the Group.
(iv) In the previous financial year, the Company’s wholly-owned subsidiary, KLK Plantations and Trading Pte Ltd (formerly
known as Taiko Plantations Pte Ltd) had completed the acquisition of shares in the following subsidiaries:
(a) 5% equity interest in P.T. Mulia Agro Permai (“MAP”) on 11 July 2022;
(b) 5% equity interest in P.T. Karya Makmur Abadi (“KMA”) on 11 July 2022; and
(c) 5% equity interest in P.T. Menteng Jaya Sawit Perdana (“MJSP”) on 13 July 2022.
MAP, KMA and MJSP became wholly-owned subsidiaries of the Group upon completion of the above acquisitions.
(v) In the previous financial year, the Company had further acquired 29.65% equity interest in KLK Sawit Nusantara
Berhad (“KSN”) (formerly known as IJM Plantations Berhad) resulting the Group’s total effective equity interest in
KSN and its subsidiaries increased from 56.22% to 96.06% as at 30 September 2022.
Arising from the increased shareholdings in KSN, the Group’s effective ownership interest in P.T. Perindustrian Sawit
Synergi had increased from 91.24% to 99.21%.
(c) Material non-controlling interests

As at 30 September 2023 and 30 September 2022, other than the non-controlling interest in Scope Energy Sdn Bhd
("Scope Energy") and Aura Muhibah Sdn Bhd ("AMSB"), the Group does not have any other subsidiary which has non-
controlling interests that are individually material to the Group.
2023 2022
Scope Scope
Energy AMSB Energy AMSB
Non-controlling interest's percentage of ownership
interest and voting interest 40% 40% 40% 40%
2023 2022
Scope Scope
Energy AMSB Energy AMSB
RM'000 RM'000 RM'000 RM'000
Carrying amount of non-controlling interests 361,168 365,246 361,021 362,819

Profit allocated to non-controlling interests 148 2,427 90 3,650
Summarised financial information (before inter-company

elimination):
(i) Summarised statement of financial position as at
30 September
Non-current assets 883,922 901,373 883,909 901,373
Current assets 19,064 12,316 18,692 6,983
Current liabilities (65) (573) (49) (1,308)
Net assets 902,921 913,116 902,552 907,048
(ii) Summarised statement of comprehensive income

for the year ended 30 September
Revenue 681 9,079 551 13,515
Profit for the year 369 6,068 226 9,125
Total comprehensive income 369 6,068 226 9,125
(iii) Summarised cash flows for the year ended

30 September
Cash flows (used in)/from operating activities (44) 5,643 (83) 8,859
Cash flows from investing activities 461 183 16,342 14
Cash flows used in financing activities - - - (16,000)
Net increase/(decrease) in cash and cash equivalents 417 5,826 16,259 (7,127)
204
(d) Dividends paid to non-controlling interests for the financial year ended 30 September 2023 were RM85,226,000 (2022:
RM173,997,000).
44. SEGMENT INFORMATION – GROUP

The Group has 5 reportable segments which are the Group's strategic business units. The strategic business units offer
different products and are managed separately as they require different technology and marketing strategies. The
Group's Chief Executive Officer reviews internal management reports of each of the strategic business units on a monthly
basis.
The reportable segments are summarised below:
Plantation Cultivation and processing of palm and rubber products
Manufacturing Manufacturing of oleochemicals, non-ionic surfactants and esters, rubber gloves, parquet
flooring products, pharmaceutical products, storing and distribution of bulk liquid, refining of
palm products, kernel crushing and trading of palm products
Property development Development of residential and commercial properties
Investment holding Placement of deposits with licensed banks, investment in money market funds, investment in
quoted and unquoted corporations and speciality chemicals manufacturing by an associate
Others Farming and management services
The accounting policies of the reportable segments are the same as described in Note 3.23.
Inter-segment pricing is determined based on negotiated terms in a manner similar to transactions with third parties.
Performance is measured based on segment profit before tax as included in the internal management reports that are
reviewed by the Group's Chief Executive Officer. Segment profit is used to measure performance as management
believes that such information is the most relevant in evaluating the results of certain segments relative to other entities
that operate with these industries.
Segment assets exclude tax assets.
Segment liabilities exclude tax liabilities.
205

(a) Business segment

Property Investment
Plantation Manufacturing Development Holding Others Elimination Consolidated
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
2023
Revenue
Sale to external customers 3,421,324 19,692,087 218,106 121,391 194,678 - 23,647,586
Inter-segment sales 1,709,605 2,272 - 455,195 33,108 (2,200,180) -
Total revenue 5,130,929 19,694,359 218,106 576,586 227,786 (2,200,180) 23,647,586
Results
Operating results 1,166,779 391,942 57,390 52,295 30,774 - 1,699,180
Interest income 12,180 9,142 6,580 95,163 472 (44,051) 79,486
Finance costs (19,469) (130,543) (2,430) (295,262) (2,023) 44,051 (405,676)
Share of profit/(loss) of equity
accounted associates, net of tax 4,649 14,719 (18) (194,269) - - (174,919)
Share of loss of equity accounted
joint ventures, net of tax - (20,600) - - - - (20,600)
Segment results 1,164,139 264,660 61,522 (342,073) 29,223 - 1,177,471
Corporate expense (25,244)
Profit before taxation 1,152,227
Tax expense (161,530)
Profit for the year 990,697
Assets
Operating assets 11,497,999 10,619,488 2,770,521 1,603,034 589,356 - 27,080,398
Associates 29,052 72,583 7,805 2,179,405 - - 2,288,845
Joint ventures - 66,063 - - - - 66,063
Segment assets 11,527,051 10,758,134 2,778,326 3,782,439 589,356 - 29,435,306
Tax assets 691,085
Total assets 30,126,391
Liabilities
Segment liabilities 1,280,190 4,171,638 279,233 7,058,994 73,923 - 12,863,978
Tax liabilities 1,118,654
Total liabilities 13,982,632
Other information
Depreciation of property,
plant and equipment 608,935 278,099 2,445 183 12,798 - 902,460
Depreciation of right-of-use assets 31,794 26,005 - 46 435 - 58,280
Non-cash expenses
Property, plant and
equipment written off 3,241 4,231 - - - - 7,472
Retirement benefits provision 47,099 17,428 - - - - 64,527
Amortisation of intangible assets - 5,470 - - - - 5,470
Amortisation of deferred income - (8,646) - - - - (8,646)
Impairment of trade receivables - 922 - - - - 922
Impairment of plasma project
receivables 62,915 - - - - - 62,915
Reversal of impairment of
trade receivables - (3,213) - - - - (3,213)
plasma project receivables (874) - - - - - (874)
Trade receivables written off - 1,220 - - - - 1,220
Write down of inventories 85,066 80,394 - - 1 - 165,461
Write back of inventories - (108,787) - - - - (108,787)
Impairment of property, plant
and equipment - 27,821 - - - - 27,821
Surplus on disposal of a
business line - (76,443) - - - - (76,443)
Surplus on government
acquisition of land * - - - - - - (42,218)
Surplus on disposal of land * - - - - - - (10,212)
* Included under corporate expenses
206

Property Investment
Plantation Manufacturing Development Holding Others Elimination Consolidated
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
2022
Revenue
Sale to external customers 4,082,366 22,605,225 195,199 95,222 171,462 - 27,149,474
Inter-segment sales 1,835,403 15,192 - 458,925 50,877 (2,360,397) -
Total revenue 5,917,769 22,620,417 195,199 554,147 222,339 (2,360,397) 27,149,474
Results
Operating results 2,144,107 1,084,654 64,790 43,945 43,711 - 3,381,207
Interest income 7,165 3,991 4,749 85,258 15 (39,811) 61,367
Finance costs (17,685) (80,746) (815) (292,001) (6,694) 39,811 (358,130)
Share of profit of equity accounted
associates, net of tax 5,471 20,352 2,134 114,660 - - 142,617
Share of profit/(loss) of equity
accounted joint ventures,
net of tax - 42,319 - - (1,303) - 41,016
Segment results 2,139,058 1,070,570 70,858 (48,138) 35,729 - 3,268,077
Corporate expense (48,599)
Profit before taxation 3,219,478
Tax expense (781,121)
Profit for the year 2,438,357
Assets
Operating assets 11,212,000 10,498,732 2,720,186 2,286,485 574,621 - 27,292,024
Associates 31,403 73,887 10,323 2,251,384 - - 2,366,997
Joint ventures - 215,962 - - - - 215,962
Segment assets 11,243,403 10,788,581 2,730,509 4,537,869 574,621 - 29,874,983
Tax assets 363,542
Total assets 30,238,525
Liabilities
Segment liabilities 1,373,621 4,347,938 192,180 6,932,174 87,430 - 12,933,343
Tax liabilities 1,253,360
Total liabilities 14,186,703
Other information
Depreciation of property,
plant and equipment 590,759 262,631 2,309 181 11,906 - 867,786
Depreciation of right-of-use assets 35,367 23,459 17 46 334 - 59,223
Non-cash expenses
Property, plant and
equipment written off 3,649 3,144 - - - - 6,793
Retirement benefits provision 55,047 13,368 - - - - 68,415
Amortisation of deferred income - (8,653) - - - - (8,653)
Impairment of trade receivables - 661 - - - - 661
Impairment of plasma project
receivables 8,586 - - - - - 8,586
trade receivables - (20,672) - - (21) - (20,693)
plasma project receivables (523) - - - - - (523)
Trade receivables written off - 4,730 - - - - 4,730
Other receivables written off 16 - - 6,332 - - 6,348
Write down of inventories 123,930 161,911 - - - - 285,841
Write back of inventories (78) (7,738) - - (23) - (7,839)
Amortisation of intangible assets - 3,727 - - - - 3,727
Impairment of property, plant
and equipment 11,205 32,108 - - - - 43,313
Surplus on government
acquisition of land * - - - - - - (4,049)
Surplus on disposal of land * - - - - - - (3,698)
Surplus on disposal of a
subsidiary * - - - - - - (2,119)
* Included under corporate expenses
207

Additions to non-current assets, other than financial instruments (including investments in associates and joint ventures)
and deferred tax assets, are as follows:
Property
Plantation Manufacturing Development Others Total
RM'000 RM'000 RM'000 RM'000 RM'000
2023
Capital expenditure 640,087 902,991 555 21,043 1,564,676
Right-of-use assets 14,700 25,102 - 500 40,302
Investment property - - 4,297 - 4,297
Land held for property development - - 20,827 - 20,827
Intangible assets - 1,755 - - 1,755
654,787 929,848 25,679 21,543 1,631,857
2022
Capital expenditure 573,770 665,485 1,111 21,923 1,262,289
Right-of-use assets 10,406 43,256 - - 53,662
Land held for property development - - 8,695 - 8,695
Intangible assets - 1,151 - - 1,151
584,176 709,892 9,806 21,923 1,325,797
(b) Geographical segments

In presenting information on the basis of geographical segments, segment revenue is based on geographical location of
customers. Segment assets are based on the geographical location of the assets. The amounts of non-current assets
do not include financial instruments, investments in associates, joint ventures and deferred tax assets.
(i) Revenue from external customers by geographical location of customers
2023 2022
RM’000 RM’000
Malaysia 3,446,398 4,018,831
Far East 3,105,354 3,894,837
Middle East 555,172 611,506
South East Asia 7,758,776 8,598,108
Southern Asia 1,768,174 2,080,605
Europe 5,286,070 6,247,819
North America 503,446 758,701
South America 137,599 174,799
Australia 364,963 421,108
Africa 636,495 295,125
Others 85,139 48,035
23,647,586 27,149,474
(ii) Non-current assets other than financial instruments, investments in associates, joint ventures, other receivables,
derivative financial assets and deferred tax assets and additions to capital expenditure, right-of-use assets and
investment property by geographical location of the assets
Additions to
Capital Expenditure,
Right-of-Use Assets and
Non-current Assets Investment Property
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
Malaysia 8,712,334 8,212,130 857,908 663,962
Indonesia 5,311,640 5,208,138 521,369 505,343
Australia 484,115 468,141 20,933 21,758
People's Republic of China 415,296 361,321 91,415 25,033
Europe 1,493,742 1,293,423 109,003 94,276
Liberia 241,271 252,456 7,354 5,360
Others 13,450 11,221 1,293 219
16,671,848 15,806,830 1,609,275 1,315,951
(c) There is no single customer with revenue equal or more than 10% of the Group revenue.
208
45. FINANCIAL INSTRUMENTS

(a) Categories of financial instruments
Financial instruments of the Group and of the Company are categorised as follows:
(i) Financial assets at amortised cost ("FA");
(ii) Fair value through profit or loss ("FVTPL");
(iii) Fair value through other comprehensive income ("FVOCI"); and
(iv) Financial liabilities at amortised cost ("FL").
Carrying
Amounts FA FVTPL FVOCI FL
RM’000 RM’000 RM’000 RM’000 RM’000
Group
2023
Financial assets
Other investments 745,242 - 45,024 700,218 -
Trade receivables 2,268,228 2,268,228 - - -
Other receivables, net of prepayments and
indirect tax 1,199,647 1,199,647 - - -
Contract assets 74,489 74,489 - - -
Derivative financial assets 48,912 - 48,912 - -
Money market funds 507,224 - 507,224 - -
Cash, deposits and bank balances 1,992,696 1,992,696 - - -
6,836,438 5,535,060 601,160 700,218 -
Financial liabilities
Borrowings 9,893,975 - - - 9,893,975
Trade payables 817,728 - - - 817,728
Other payables, net of indirect tax 1,140,040 - - - 1,140,040
Contract liabilities 131,123 - - - 131,123
Lease liabilities 181,129 - - - 181,129
Derivative financial liabilities 62,077 - 62,077 - -
12,226,072 - 62,077 - 12,163,995
2022
Financial assets
Other investments 595,711 - 45,365 550,346 -
Trade receivables 1,911,690 1,911,690 - - -
indirect tax 861,621 861,621 - - -
Contract assets 83,186 83,186 - - -
Cash, deposits and bank balances 2,072,571 2,072,571 - - -
6,849,047 4,929,068 1,369,633 550,346 -
Borrowings 9,382,288 - - - 9,382,288
Trade payables 1,000,516 - - - 1,000,516
Other payables, net of indirect tax 1,095,287 - - - 1,095,287
Contract liabilities 138,121 - - - 138,121
Derivative financial liabilities 544,316 - 544,316 - -
12,341,364 - 544,316 - 11,797,048
209

Carrying
Amounts FA FVTPL FVOCI FL
RM’000 RM’000 RM’000 RM’000 RM’000
Company
2023
Financial assets
Other investments 125,321 - - 125,321 -
Trade receivables 26,744 26,744 - - -
indirect tax 289,752 289,752 - - -
Amounts owing by subsidiaries 1,595,333 1,595,333 - - -
Money market fund 21,117 - 21,117 - -
Cash, deposits and bank balances 499,814 499,814 - - -
2,560,941 2,411,643 23,977 125,321 -
Borrowings 6,950,000 - - - 6,950,000
Trade payables 8,043 - - - 8,043
Other payables, net of indirect tax 142,436 - - - 142,436
Amounts owing to subsidiaries 3,156 - - - 3,156
Derivative financial liabilities 209 - 209 - -
7,164,759 - 209 - 7,164,550
2022
Financial assets
Other investments 146,550 - - 146,550 -
Trade receivables 20,168 20,168 - - -
indirect tax 14,336 14,336 - - -
Amounts owing by subsidiaries 2,184,331 2,184,331 - - -
Cash, deposits and bank balances 367,895 367,895 - - -
3,524,044 2,586,730 790,764 146,550 -
Borrowings 6,800,000 - - - 6,800,000
Trade payables 7,612 - - - 7,612
Other payables, net of indirect tax 185,872 - - - 185,872
Amounts owing to subsidiaries 2,682 - - - 2,682
Derivative financial liabilities 245 - 245 - -
7,146,832 - 245 - 7,146,587
(b) Net gains and losses arising from financial instruments
Group Company
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
Net gains/(losses) on:
Financial instruments at fair value through
profit or loss 21,034 (353) 19,678 93,419
Other investments
- recognised in other comprehensive income (50,218) 7,330 (125,282) (572,216)
- recognised in profit or loss 30,947 29,722 963 43,968
(19,271) 37,052 (124,319) (528,248)
Financial assets at amortised cost 27,025 97,934 135,268 83,790
Financial liabilities at amortised cost (409,659) (374,574) (283,705) (281,307)
(380,871) (239,941) (253,078) (632,346)
210
(c) Financial risk management

The Group has exposure to the following risks from the use of financial instruments:
- Credit risk
- Liquidity risk
- Market risk
(d) Credit risk

Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial instrument fails to meet
its contractual obligations. The Group’s exposure to credit risk arises principally from its receivables from customers,
investment securities and derivative assets used for hedging. The Company’s exposure to credit risk arises principally
from loans and advances to subsidiaries and financial guarantees given to banks for credit facilities granted to
subsidiaries.
(i) Receivables
Risk management objectives, policies and processes for managing the risk
Management has a credit policy in place and exposure to credit risk is monitored on an on-going basis. Credit
worthiness review is regularly performed for new customers and existing customers who trade on credit, to mitigate
exposure on credit risk. Where appropriate, the Group requires its customers to provide collateral before approvals
are given to trade on credit.
Exposure to credit risk, credit quality and collateral

As at the end of the reporting period, the maximum exposure to credit risk arising from receivables is represented by
the carrying amounts in the statements of financial position.
Management has taken reasonable steps to ensure that receivables that are neither past due nor impaired are stated
at their realisable values. A significant portion of these receivables are regular customers that have been transacting
with the Group. The Group uses ageing analysis to monitor the credit quality of the receivables. Any receivables
having significant balances past due the agreed credit periods, which are deemed to have higher credit risk, are
monitored individually.
Other than other receivables as disclosed at Note 22, none of the receivables are secured by financial guarantees
given by banks, shareholders or directors of the customers.
The Group and Company do not have any significant exposure to any individual customer.
The exposure of credit risk for trade receivables as at end of the reporting period by business segment was:
Group Company
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
Plantation 236,619 146,990 26,744 20,168

Manufacturing 1,991,544 1,740,328 - -
Property development 37,196 22,016 - -
Others 2,869 2,356 - -
2,268,228 1,911,690 ¤ 26,744 20,168
(ii) Investments and other financial assets

Investments are allowed only in liquid securities and only with counterparties that have a credit rating equal to or
better than the Group. Transactions involving derivative financial instruments are with approved financial institutions.

As at the end of the reporting period, the Group invested in both domestic and overseas securities. The maximum
exposure to credit risk is represented by the carrying amounts in the statements of financial position.
In view of the sound credit rating of counterparties, management does not expect any counterparty to fail to meet its
obligations.
The investments and other financial assets are unsecured.
211

(iii) Financial guarantees

The Group provides unsecured financial guarantees to banks in respect of banking facilities granted to plasma
plantation projects.
The Company provides unsecured financial guarantees to banks in respect of banking facilities granted to certain
subsidiaries. The Company monitors on an ongoing basis the results of the subsidiaries and repayments made by
the subsidiaries.
As at end of the reporting period, there was no indication that any plasma plantation projects or subsidiary would
default on repayment.
The financial guarantees have not been recognised since the fair value was not material.
Maturity profile of financial guarantee contracts of the Group and of the Company at the end of each reporting period
based on contractual undiscounted repayment obligations is repayable upon any default by the plasma plantation
projects or subsidiaries in respect of the guaranteed bank facilities.
(iv) Inter-company balances
The Company provides unsecured loans and advances to subsidiaries. The Company monitors the results of the
subsidiaries regularly.
As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts
in the statement of financial position.
(e) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
exposure to liquidity risk arises principally from its various payables, loans and borrowings.
The Group maintains sufficient levels of cash and cash equivalents and adequate amounts of credit facilities to meet its
working capital requirements. In addition, the Group strives to maintain flexibility in funding by keeping its credit lines
available at a reasonable level. As far as possible, the Group raises funding from financial institutions and prudently
balances its portfolio with some short and long term funding so as to achieve overall cost effectiveness.
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly
different amounts.
The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities as at end of the
reporting period based on undiscounted contractual payments:
Contractual Less More
Carrying Interest/ Contractual than 1–2 2–5 than
Amounts Coupon Rate Cash Flows 1 year years years 5 years
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group
2023
Borrowings 9,893,975 0.71% to 7.00% 11,726,472 3,184,021 1,693,054 2,131,961 4,717,436
Trade payables 817,728 - 817,728 817,728 - - -
Other payables, net of
indirect tax 1,140,040 - 1,140,040 1,140,040 - - -
Contract liabilities 131,123 - 131,123 131,123 - - -
Lease liabilities 181,129 0.19% to 12.00% 312,596 32,233 31,086 46,355 202,922
Derivative financial liabilities 62,077 - 62,077 62,056 21 - -
12,226,072 14,190,036 5,367,201 1,724,161 2,178,316 4,920,358
2022
Borrowings 9,382,288 0.70% to 4.65% 11,532,087 2,457,441 559,210 2,432,517 6,082,919
Trade payables 1,000,516 - 1,000,516 1,000,516 - - -
Other payables, net of
indirect tax 1,095,287 - 1,095,287 1,095,287 - - -
Contract liabilities 138,121 - 138,121 138,121 - - -
Lease liabilities 180,836 0.09% to 12.00% 276,273 29,698 24,659 45,708 176,208
Derivative financial liabilities 544,316 - 544,316 544,316 - - -
12,341,364 14,586,600 5,265,379 583,869 2,478,225 6,259,127
212
Contractual Less More

Carrying Interest/ Contractual than 1–2 2–5 than
Amounts Coupon Rate Cash Flows 1 year years years 5 years
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Company
2023
Borrowings 6,950,000 3.40% to 4.65% 8,755,178 547,556 1,485,436 2,039,682 4,682,504
Trade payables 8,043 - 8,043 8,043 - - -
Other payables 142,436 - 142,436 142,436 - - -
Lease liabilities 60,915 3.95% 66,479 21,296 17,049 21,110 7,024
Derivative financial liabilities 209 - 209 209 - - -
Amounts owing to subsidiaries 3,156 - 3,156 3,156 - - -
7,164,759 8,975,501 722,696 1,502,485 2,060,792 4,689,528
2022
Borrowings 6,800,000 3.40% to 4.65% 8,926,351 276,730 277,488 2,289,214 6,082,919
Trade payables 7,612 - 7,612 7,612 - - -
Other payables 185,872 - 185,872 185,872 - - -
Lease liabilities 150,421 3.95% 169,590 33,955 33,944 61,534 40,157
Derivative financial liabilities 245 - 245 245 - - -
Amounts owing to subsidiaries 2,682 - 2,682 2,682 - - -
7,146,832 9,292,352 507,096 311,432 2,350,748 6,123,076
(f) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and other prices that
will affect the Group’s financial position or cash flows.
(i) Foreign currency risk
The Group is exposed to foreign currency risk on sales, purchases, inter-company advances and borrowings that
are denominated in a currency other than the respective functional currencies of Group entities. The currencies
giving rise to this risk are primarily United States Dollar ("USD"), Pound Sterling ("GBP"), Euro, Australian Dollar
("AUD"), Singapore Dollar ("SGD"), Indonesian Rupiah ("Rp"), Japanese Yen ("JPY") and Renminbi (“Rmb”).
Foreign currencies exposures of the Group are hedged through forward exchange contracts. Most of the forward
exchange contracts have maturities of less than one year after the end of the reporting period. Where necessary,
the forward exchange contracts are rolled over at maturity.
Exposure to foreign currency risk

The Group’s significant exposure to foreign currency (a currency which is other than the functional currency of the
Group entities) risk, based on carrying amounts as at end of the reporting period was:
Denominated in foreign currencies
USD GBP Euro AUD SGD Rp JPY Rmb
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2023
Trade and other receivables 564,253 1,812 399,372 5,866 455 127,243 496 12,704
Short term funds 100,449 - - 10,877 - - - -
Cash and cash equivalents 152,275 547 127,551 354 10,273 3 22 5
Borrowings (241,894) - - - - - - -
Trade and other payables (96,999) (13) (161,295) (3,602) (6,697) - (1,345) -
Contract liabilities (28,775) - (14,430) (6) - - - -
Lease liabilities (72,932) - - - - - - -
Forward exchange contracts (17,450) - 3,031 - - (221) - (88)
Exposure in the statement of
financial position 358,927 2,346 354,229 13,489 4,031 127,025 (827) 12,621
213


USD GBP Euro AUD SGD Rp JPY Rmb
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2022
Trade and other receivables 551,629 3,753 453,346 2,664 2,070 131,728 275 2,977
Short term funds 8,280 - - - 16,223 - - -
Cash and cash equivalents 294,834 578 31,736 2,191 34,671 - 35 5
Borrowings (302,152) - (148,972) - - - - -
Trade and other payables (185,141) (220) (211,762) - (5,759) - - -
Contract liabilities (54,582) - (11,016) (14) - - - -
Lease liabilities (76,778) - - - - - - -
Forward exchange contracts (77,001) - 681 75 - 183 - -
Exposure in the statement of
financial position 159,089 4,111 114,013 4,916 47,205 131,911 310 2,982

USD GBP Euro AUD SGD Rp
Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2023
Trade and other receivables 9,827 - - - - -
Short term funds 46,953 - - 10,877 - -
Cash and cash equivalents 66,274 177 48,383 191 9,445 -
Amounts owing by/(to) subsidiaries 246,847 - 298,036 181,156 (18) -
Forward exchange contracts (209) - - - - -
Other investment - 16,858 - - - -
Exposure in the statement of financial position 369,692 17,035 346,419 192,224 9,427 -
2022
Trade and other receivables 6,327 - - - - -
Short term funds - - - - 16,223 -
Cash and cash equivalents 193,288 87 80 2,174 34,072 -
Amounts owing by subsidiaries 279,852 38 227,454 177,036 - 63,472
Forward exchange contracts (245) - - - - -
Other investment - 139,865 - - - -
Exposure in the statement of financial position 479,222 139,990 227,534 179,210 50,295 63,472
Currency risk sensitivity analysis

The sensitivities of the Group’s profit after tax and equity to the possible change in the following foreign currencies
against the respective functional currencies of the Group entities are shown below. This analysis assumes that all
other variables, in particular interest rates, remained constant and ignores any impact of forecasted sales and
purchases.
A 5% strengthening of the functional currencies of the Group entities against the foreign currencies at the end of the
reporting period would have increased/(decreased) profit after tax and equity by the amounts shown below:
2023 2022
Profit/(Loss) Equity Profit/(Loss) Equity
RM’000 RM’000 RM’000 RM’000
Group
Functional currency/Foreign currency
RM/GBP (12) (843) (4) (6,993)
RM/Euro 5,170 - 11,855 -
RM/USD 51,707 - 77,105 -
RM/SGD (479) - (2,603) -
RM/Rp (10,069) - (5,368) -
RM/JPY (10) - (15) -
CHF/Euro (11,838) - (5,918) -
Rmb/USD (1,590) - (9,154) -
Euro/USD (7,908) - (10,921) -
Rp/USD 3,970 - 6,490 -
USD/RM (1,496) - (600) -
USD/Rp (128) - (750) -
SGD/USD (4) - (8) -
214
2023 2022
RM’000 RM’000 RM’000 RM’000
Company
Functional currency/Foreign currency
RM/GBP (9) (843) (7) (6,993)
RM/Euro (17,321) - (11,377) -
RM/USD (18,485) - (23,961) -
RM/SGD (471) - (2,515) -
RM/AUD (9,611) ¤ - (8,961) -
RM/Rp - - (3,174) -
A 5% weakening of the functional currencies of the Group entities against the foreign currencies at the end of the
reporting period would have equal but opposite effect on profit after tax and equity.
(ii) Interest rate risk

The Group’s fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest rates.
The Group’s floating rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates.
Money market funds, deposits with licensed banks, short term receivables and payables are not significantly exposed
to interest rate risk.
The Group through its Treasury Committee reviews the funding requirements for its business operations and capital
expenditure and adopts a policy to secure an appropriate mix of fixed and floating rate exposure suitable for the
Group.
To achieve this objective, the Group has obtained the most competitive cost of capital through the issuance of Islamic
Medium Term Notes, long term and short term borrowings and trade financing facilities.
Exposure to interest rate risk

The interest rate profile of the Group’s and the Company’s significant interest-bearing financial instruments, based
on carrying amounts as at the end of the reporting period was:
Group Company
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
Fixed rate instruments
Financial assets 1,793,208 2,494,325 1,600,365 2,848,512
Financial liabilities (8,694,104) (8,218,093) (6,950,000) (6,800,000)
(6,900,896) (5,723,768) (5,349,635) (3,951,488)
Floating rate instruments

Financial assets 432,958 376,408 433,764 254,576
Financial liabilities (1,199,872) (1,164,195) - -
(766,914) (787,787) 433,764 254,576
Interest rate risk sensitivity analysis

Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial liabilities at fair value through profit or loss, and the Group
does not designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a
change in interest rates at the end of the reporting period would not affect profit or loss.
Cash flow sensitivity analysis for floating rate instruments

A change of 50 basis points in interest rates at the end of the reporting period would have increased/(decreased)
profit after tax and equity by the amounts shown below. The analysis assumes that all other variables, in particular
foreign currency rates, remain constant.
2023 2022
RM’000 RM’000 RM’000 RM’000
Group
Increase by 50 basis points (4,353) - (4,342) -
Decrease by 50 basis points 4,353 - 4,342 -
215

2023 2022
RM’000 RM’000 RM’000 RM’000
Company
Increase by 50 basis points 2,169 - 1,273 -
Decrease by 50 basis points (2,169) - (1,273) -
(iii) Debt and equity price risk

Debt and equity price risk arises from the Group’s investments in debt and equity securities.
Management of the Group monitors the equity investments on a portfolio basis. Material investments within the
portfolio are managed on an individual basis and all material buy and sell decisions are approved by the Board of
Directors.
Debt and equity price risk sensitivity analysis
The analysis assumes that all other variables remain constant.
A 5% increase in debt and equity prices at the end of the reporting period would have increased the Group’s and
the Company’s equity by RM36,667,000 (2022: RM29,450,000) and RM843,000 (2022: RM6,993,000) respectively.
A 5% decrease in debt and equity prices would have equal but opposite effect on equity.
(iv) Commodity price risk

The Group is exposed to price fluctuation risk on commodities mainly of palm oil and rubber.
Risk management objectives, policy and processes for managing the risk
The prices of these commodities are subject to fluctuations due to uncontrollable factors such as weather, global
demand and global production of similar and competitive crops. The Group mitigates the risk to the price volatility
through hedging in the futures market and where deemed prudent, the Group sells forward in the physical market.
Commodity price risk sensitivity analysis

A 5% increase/(decrease) of the commodities price at the end of the reporting period, with all other variables held
constant, would have increased/(decreased) profit after tax and equity by the amounts shown below:
2023 2022
RM’000 RM’000 RM’000 RM’000
Group
5% increase in commodities prices 825 - (2,433) -
5% decrease in commodities prices (825) - 2,433 -
Company
5% increase in commodities prices (3,077) - (6,582) -
5% decrease in commodities prices 3,077 - 6,582 -
(g) Fair value of financial instruments

The carrying amounts of cash and bank balances, deposits with licensed banks, short term receivables and payables
reasonably approximate fair values due to the relatively short term nature of these financial instruments.
The fair values of other financial assets and liabilities, together with the carrying amounts shown in the statements of
financial position, are as follows:
2023 2022
Carrying Carrying
Amounts Fair Value Amounts Fair Value
RM’000 RM’000 RM’000 RM’000
Group
Other investments 745,242 745,242 595,711 595,711
Derivative financial instruments
Forward foreign exchange contracts (14,729) (14,729) (76,103) (76,103)
Commodities future contracts 88 88 77,053 77,053
Interest rate swap contracts 1,706 1,706 - -
Commodities swap contracts (230) (230) - -
Other receivables 394,069 394,069 425,925 425,925
Borrowings (9,893,975) (9,893,975) (9,382,288) (9,382,288)
216
2023 2022
Carrying Carrying
Amounts Fair Value Amounts Fair Value
RM’000 RM’000 RM’000 RM’000
Company
Other investments 125,321 125,321 146,550 146,550
Amounts owing by subsidiaries 1,595,333 1,595,333 2,184,331 2,184,331
Forward foreign exchange contracts (209) (209) (245) (245)
Commodities future contracts 2,860 2,860 83,754 83,754
Borrowings (6,950,000) (6,950,000) (6,800,000) (6,800,000)
Amounts owing to subsidiaries (3,156) (3,156) (2,682) (2,682)
Fair value hierarchy

The table below analyses financial instruments carried at fair value and those not carried at fair value for which fair value
is disclosed.
2023 2022
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group
Fair value of financial instruments
carried at fair value
Other investments 733,344 - 11,898 745,242 589,025 - 6,686 595,711
Money market funds 507,224 - - 507,224 779,002 - - 779,002
Forward foreign exchange contracts - (14,729) - (14,729) - (76,103) - (76,103)
Commodities future contracts 88 - - 88 77,053 - - 77,053
Commodities swap contracts - (230) - (230) - - - -
Interest rate swap contracts - 1,706 - 1,706 - - - -
1,240,656 (13,253) 11,898 1,239,301 1,445,080 (76,103) 6,686 1,375,663
not carried at fair value
Other receivables - - 394,069 394,069 - - 425,925 425,925
Borrowings - - (9,893,975) (9,893,975) - - (9,382,288) (9,382,288)
- - (9,499,906) (9,499,906) - - (8,956,363) (8,956,363)
Company
carried at fair value
Other investments 118,024 - 7,297 125,321 139,864 - 6,686 146,550
Money market funds 21,117 - - 21,117 707,010 - - 707,010
Forward foreign exchange contracts - (209) - (209) - (245) - (245)
Commodities future contracts 2,860 - - 2,860 83,754 - - 83,754
142,001 (209) 7,297 149,089 930,628 (245) 6,686 937,069
not carried at fair value
Amounts owing by subsidiaries - - 1,595,333 1,595,333 - - 2,184,331 2,184,331
Borrowings - - (6,950,000) (6,950,000) - - (6,800,000) (6,800,000)
Amounts owing to subsidiaries - - (3,156) (3,156) - - (2,682) (2,682)
- - (5,357,823) (5,357,823) - - (4,618,351) (4,618,351)
The following table shows a reconciliation of Level 3 fair value of other investments:
Group Company
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000
At beginning of the year 6,686 6,567 6,686 6,567

Addition 4,601 - - -
Net change in fair value 611 119 611 119
At end of the year 11,898 6,686 7,297 6,686
217

There were no transfers between all three levels of the fair value hierarchy during the financial year.
The following summarises the methods used in determining the fair values of financial instruments reflected in the above
table.
Level 1 Fair Value

Investments in quoted shares and commodities future contracts
The fair values of investments that are quoted in an active market and commodities future contracts are determined by
reference to their quoted closing bid price at the end of the reporting period.
Money market funds

The fair value of money market funds is based on quoted price of the funds at the end of the reporting period.
Level 2 Fair Value

Forward foreign exchange contracts, interest rate swap contracts and commodities swap contracts
The fair values of forward foreign exchange contracts, interest rate swap contracts and commodities swap contracts are
based on their quoted price at the end of the reporting period.
Level 3 Fair Value

Financial instruments not carried at fair value
Fair value of the following financial instruments not carried at fair value, which is determined for disclosure purposes, is
calculated based on present value of future cash flows discounted at the market rate of interest at the end of the reporting
date:
- Other receivables
- Borrowings
- Amounts owing by subsidiaries
- Amount owing to subsidiaries
Fair value of other unquoted investments is estimated based on adjusted net asset method.
Transfer between Level 1 and Level 2 fair values
There has been no transfer between Level 1 and Level 2 fair values during the financial year (2022: no transfer in either
directions).
46. CAPITAL MANAGEMENT

The Group’s objectives when managing capital is to maintain a strong capital base and safeguard the Group’s ability to
continue as a going concern, so as to maintain investor, creditor and market confidence and to sustain future development
of the business. The Directors monitor and are determined to maintain an optimal debt-to-equity ratio that complies with
debt covenants and regulatory requirements.
The net debt-to-equity ratios at end of the reporting period were:

Group
2023 2022
RM’000 RM’000
Total borrowings (Note 36) 9,893,975 9,382,288
Less: Short term funds (Note 29) (117,798) (66,375)
Less: Cash and cash equivalents (Note 30) (2,382,122) (2,785,198)
Net debt 7,394,055 6,530,715
Total equity 16,143,759 16,051,822
Net debt-to-equity ratio 0.46 0.41
There were no changes in the Group's approach to capital management during the year.
Under the requirement of Bursa Malaysia Practice Note No. 17/2005, the Company is required to maintain a consolidated
shareholders' equity of more than 25% of the issued and paid-up capital (excluding treasury shares) and such
shareholders' equity is not less than RM40 million. The Company has complied with this requirement.
The Group is not subject to any other externally imposed capital requirements other than as disclosed in Note 36 to the
financial statements.
47. AUTHORISATION FOR ISSUE

The financial statements were authorised for issue by the Board of Directors on 8 December 2023.
218
DIRECTORS' STATEMENT PURSUANT TO SECTION 251(2) OF 219
ANNUAL REPORT 2023
THE COMPANIES ACT 2016

DIRECTORS' STATEMENT PURSUANT TO SECTION 251(2) OF

DIRECTORS’ STATEMENT
THE COMPANIES PURSUANT TO SECTION 251(2) OF THE
ACT 2016
COMPANIES ACT 2016
In the opinion of the Directors, the financial statements set out on pages 135 to 218 are drawn up in accordance with the
Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies
Act 2016
In the in Malaysia
opinion so as to give
of the Directors, a true and
the financial fair view of
statements setthe
outfinancial
on pagesposition
135 toof218
the are
Group andup
drawn of in
theaccordance
Company as at the
with 30
September 2023 and of their financial performance and cash flows for the financial year then ended.
Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies
Act 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 30
On Behalf of2023
September the Board
and of their financial performance and cash flows for the financial year then ended.
On Behalf of the Board

8 December 2023
8 December 2023
STATUTORY DECLARATION PURSUANT TO SECTION 251(1)(B)

STATUTORY
OF DECLARATION
THE COMPANIES PURSUANT TO SECTION 251(1)(B) OF
ACT 2016
STATUTORY DECLARATION PURSUANT TO SECTION 251(1)(B)
THE COMPANIES ACT 2016
OF THE COMPANIES ACT 2016
I, William Ong Eng San (MIA: CA 33088), being the officer primarily responsible for the financial management of Kuala Lumpur
Kepong Berhad, do solemnly and sincerely declare that the financial statements set out on pages 135 to 218 are, to the best
ofWilliam
I, my knowledge
Ong EngandSanbelief,
(MIA: correct and Ibeing
CA 33088), makethe
this solemn
officer declaration
primarily conscientiously
responsible believing
for the financial the declaration
management to be
of Kuala true,
Lumpur
and by virtue of the Statutory Declarations Act, 1960.
Kepong Berhad, do solemnly and sincerely declare that the financial statements set out on pages 135 to 218 are, to the best
of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the declaration to be true,
and by virtue of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared )
by the abovenamed at Ipoh in the )
State of Perak
Subscribed andDarul Ridzuan
solemnly this
declared )
)
8 th day of December 2023.
by the abovenamed at Ipoh in the )
) WILLIAM ONG ENG SAN
State of Perak Darul Ridzuan this ) (Group Chief Financial Officer)
Before me,
8 day of December 2023.
th ) WILLIAM ONG ENG SAN
(Group Chief Financial Officer)
Before me,
MURUGAN A/L KRISHNAN

Commissioner for Oaths
Ipoh, Perak Darul
MURUGAN Ridzuan,
A/L KRISHNAN
Malaysia.
Commissioner for Oaths
Ipoh, Perak Darul Ridzuan,
Malaysia.
219
219
REPORT OFTHE
REPORT OF THEAUDITORS
AUDITORS
INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF KUALA LUMPUR KEPONG BERHAD
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Kuala Lumpur Kepong Berhad, which comprise the statements of financial position
as at 30 September 2023 of the Group and of the Company, and the statements of profit or loss, statements of comprehensive
income, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year
then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages
135 to 218.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of
the Company as at 30 September 2023, and of their financial performance and their cash flows for the financial year then
ended in accordance with Malaysian Financial Reporting Standards ("MFRSs"), International Financial Reporting Standards
("IFRSs") and the requirements of the Companies Act 2016 in Malaysia.
Basis for Opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing ("ISAs"). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit
of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities

We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and
Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”),
and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.
Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the Group and of the Company for the current year. These matters were addressed in the context of our audit
of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
(a) Annual impairment assessment of the carrying amount of goodwill on consolidation

Goodwill on consolidation of the Group is allocated to three (3) CGUs, which are plantation, manufacturing and property
with a total carrying amount of RM351.73 million (2022: RM336.24 million) as disclosed in Note 16 to the financial
statements. In relation to this, management is required to perform impairment assessment on an annual basis.
We determined the impairment assessment of goodwill for the plantation and manufacturing CGUs to be a key audit
matter because the determination of the recoverable amounts of goodwill for these CGUs requires management to
exercise significant judgement and estimates about the future results and the key assumptions applied to cash flow
forecasts of the CGUs, including projected growth rates, commodity prices and volumes, operational costs, appropriate
pre-tax discount rates, as well as industry trends and past performances.
Audit response
Our audit procedures included the following:
(i) assessed the historical reliability of cash flow forecasts of the CGUs by comparing prior period forecasts to actual
results for the financial year;
(ii) evaluated the reasonableness of the key assumptions applied by management in the cash flow forecasts of the
CGUs to available external industry sources of data and corroborated with the findings from other areas of the audit,
where applicable; and
(iii) performed sensitivity analysis to stress test the key assumptions used in the impairment assessment.
(b) Impairment assessment of investment in an associate

As at 30 September 2023, the carrying amounts of the Group’s investment in Synthomer plc (“Synthomer”) amounted to
RM2.18 billion (2022: RM2.25 billion) as disclosed in Note 19 to the financial statements.
Management has performed an impairment assessment due to the indication of impairment arising from the carrying
amount of the investment exceeding the fair value of quoted Synthomer shares of RM83.4 million as at 30 September
2023. We considered this to be a key audit matter because of the significant judgements and estimates on key
assumptions applied by management to determine the recoverable amount of Synthomer applying value-in-use
calculations. The value-in-use calculations reflect certain key assumptions made by management including estimated
earnings before interest, tax, depreciation and amortisation (“EBITDA”) growth rates, terminal growth rate and discount
rates applied.
220
REPORT
REPORT OFAUDITORS
OF THE THE AUDITORS (Continued)
Audit response
(i) assessed the historical reliability of management’s cash flow forecasts by comparing prior period forecasts to actual
(ii) evaluated the reasonableness of the key assumptions applied by management in the cash flow forecasts to historical
results and available external industry sources of data, including developing an auditor's point of estimate to
compare against management’s estimate; and
(c) Impairment assessment of property, plant and equipment and right-of-use assets related to the Group’s rubber
glove operation
The Group has property, plant and equipment and right-of-use assets related to rubber glove operation with a total
carrying amount of RM304.9 million as at 30 September 2023 as disclosed in Note 12 to the financial statements.
We identified this to be a key audit matter due to continued losses of the rubber glove operation and significant estimates
and judgements applied by management in value-in-use calculations to determine the recoverable amount of the CGU.
Audit response
(i) assessed the historical reliability of cash flow forecast of the CGU by comparing prior period forecasts to actual
(ii) evaluated the reasonableness of the key assumptions applied by management in the cash flow forecast of the CGU
to available external industry sources of data and corroborated with the findings from other areas of the audit, where
applicable; and
Information Other than the Financial Statements and Auditors’ Report Thereon
The Directors of the Company are responsible for the other information. The other information comprises the information
included in the annual report, but does not include the financial statements of the Group and of the Company and our auditors’
report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of
the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Statements

The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company
that give a true and fair view in accordance with MFRSs, IFRSs, and the requirements of the Companies Act 2016 in Malaysia.
The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation
of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the ability
of the Group and of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Company or
to cease operations, or have no realistic alternative but to do so.
Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with approved standards on auditing in Malaysia and ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
221
REPORT OFAUDITORS
REPORT OF THE THE AUDITORS (Continued)
As part of an audit in accordance with approved standards on auditing in Malaysia and ISAs, we exercise professional
judgement and maintain professional skepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control of the Group
and of the Company.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Directors.
(d) Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the ability of the Group or of the Company to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the
Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the
Group or the Company to cease to continue as a going concern.
(e) Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company,
including the disclosures, and whether the financial statements of the Group and of the Company represent the underlying
transactions and events in a manner that achieves fair presentation.
(f) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the financial statements of the Group. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of
the financial statements of the Group and of the Company for the current year and are therefore the key audit matters. We
describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we have
not acted as auditors, are disclosed in Note 43 to the financial statements.
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act
2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
BDO PLT Rejeesh A/L Balasubramaniam

201906000013 (LLP0018825-LCA) & AF 0206 02895/08/2024 J
Chartered Accountants Chartered Accountant
Kuala Lumpur
8 December 2023
222
OTHERS
224 Properties Held by the Group 236 Sustainability Reporting Index
232 Share Price & Volume Traded 242 Notice of Meeting
232 Changes in Share Capital 247 Notis Mesyuarat
233 Shareholding Statistics
PROPERTIES HELD BY THE GROUP

PLANTATION
YEAR OF
AGE OF CARRYING ACQUISITION/
TITLED BUILDINGS AMOUNTS LAST
LOCATION TENURE YEAR OF EXPIRY AREA# DESCRIPTION YEARS RM’000 REVALUATION
MALAYSIA
KEDAH
Ladang Pelam Freehold – 2,960 Oil palm and rubber − 50,424 1986
Baling estate 1992
Ladang Batu Lintang Freehold − 1,808 Oil palm estate and 41,123 1986
Serdang palm oil mill 44
Ladang Buntar Freehold − 549 Oil palm estate − 14,675 1986
Serdang
PERAK
Ladang Lekir Freehold − 3,306 Oil palm estate − 159,517 2008
Manjung
Ladang Changkat Chermin Leasehold 2080 2,525 Oil palm estate, 69,354 2008
Manjung palm oil mill and 40
biogas power plant −
Ladang Raja Hitam Freehold − 1,497 Oil palm estate − 52,344 2008
Manjung
Ladang Kuala Kangsar Freehold − 1,007 Oil palm and rubber − 62,842 1979*
Padang Rengas Leasehold 2896 333 estate 2016
Ladang Subur Freehold − 1,282 Oil palm estate − 31,563 1986
Batu Kurau
Ladang Glenealy Freehold − 1,059 Oil palm estate − 24,852 1992
Parit
Ladang Serapoh Freehold − 936 Oil palm and rubber − 12,453 1979*
Parit estate 1992
Ladang Allagar Freehold − 525 Oil palm estate − 10,390 1986
Trong Leasehold 2908 248
SELANGOR
Ladang Changkat Asa Freehold − 1,543 Oil palm and rubber 28,614 1979*
Hulu Selangor estate, palm oil mill 43
and rubber factory 48
Ladang Kerling Freehold − 1,222 Oil palm and rubber − 61,337 2002
Kerling estate 1979*
1985
Ladang Tuan Mee Freehold − 995 Oil palm estate and 31,713 1979*
Sungai Buloh palm oil mill 51
NEGERI SEMBILAN
Ladang Ayer Hitam Freehold − 2,640 Oil palm estate − 40,810 1985
Bahau
Ladang Batang Jelai Freehold − 2,051 Oil palm and rubber − 40,425 1985
Rompin estate
Ladang Jeram Padang Freehold − 1,943 Oil palm and rubber 34,015 1985
Bahau estate, palm oil mill, 33
rubber factory and 34
biogas power plant 5
Ladang Kombok Freehold − 1,910 Oil palm and rubber − 40,552 1985
Rantau estate
Ladang Ulu Pedas Freehold − 922 Oil palm estate − 16,574 1985
Pedas
Ladang Gunong Pertanian Leasehold 2077 686 Oil palm estate − 15,896 1985
Simpang Durian
#
Titled area is in hectares except otherwise indicated
* Year of last revaluation
OTHER S

YEAR OF
JOHOR
Ladang Voules Freehold − 4,514 Oil palm and rubber 61,960 1979*
Segamat estate and rubber
factory 50
Ladang Landak Leasehold 2068 and 4,451 Oil palm estate − 18,921 1979*
Paloh 2078
Ladang Kekayaan Leasehold 2068 and 4,436 Oil palm estate, palm 23,656 1979*
Paloh 2078 oil mill and biogas 17
power plant 7
Ladang Paloh Freehold − 2,003 Oil palm estate − 33,365 1979*
Paloh
Ladang Fraser Freehold − 1,915 Oil palm estate − 43,294 1979*
Kulai
Ladang Sungei Penggeli Leased 2087 942 Oil palm estate − 27,974 1988
Bandar Tenggara property
Ladang Ban Heng Freehold − 631 Oil palm estate − 12,645 1979*
Pagoh, Muar
Ladang Sungai Bekok Freehold − 625 Oil palm estate − 9,159 1979*
Bekok
Ladang See Sun Freehold − 589 Oil palm estate − 12,722 1984
Renggam
PAHANG
Ladang Sungei Kawang Freehold − 1,861 Oil palm and rubber − 23,693 1979*
Lanchang estate
Ladang Renjok Freehold − 1,578 Oil palm and rubber − 36,845 1979*
Bentong estate
Ladang Tuan Freehold − 910 Oil palm and rubber − 17,508 1979*
Bentong Leasehold 2030 and 443 estate
2057
Ladang Selborne Freehold − 1,256 Rubber estate − 24,489 1992
Padang Tengku, Kuala Lipis
Ladang Kemasul Freehold − 459 Oil palm and rubber − 9,477 1983
Mengkarak estate
KELANTAN
Ladang Kuala Gris Freehold − 2,429 Oil palm and rubber 43,208 1992
Kuala Krai estate –
Ladang Kerilla Freehold − 2,176 Oil palm and rubber 37,408 1992
Tanah Merah estate –
Ladang Pasir Gajah Freehold − 951 Oil palm estate and 34,589 1981*
Kuala Krai Leasehold 2907 1,155 palm oil mill 42
Ladang Sungai Sokor Freehold − 1,603 Oil palm and rubber − 32,241 1992
Tanah Merah estate
Ladang Kuala Hau Freehold − 305 Rubber estate − 10,982 1980*
Machang Leasehold 2326 242
SABAH
TAWAU REGION
Ladang Jatika Leasehold Between 3,507 Oil palm estate − 64,018 1991
2068 and 2083
Ladang Sigalong Leasehold Between 2,864 Oil palm estate − 34,255 1983
2063 and 2079
#

YEAR OF
Ladang Pangeran Leasehold Between 2,855 Oil palm estate and 33,841 1983
2063 and 2080 palm oil mill 22
Ladang Sri Kunak Leasehold Between 2,770 Oil palm estate − 15,466 1983
2063 and 2076
Ladang Pang Burong Leasehold Between 2,535 Oil palm estate − 25,497 1983
2063 and 2080
Ladang Pinang Leasehold Between 2,420 Oil palm estate − 30,413 1983
2068 and 2085
Ladang Tundong Leasehold Between 2,133 Oil palm estate, 22,785 1983
2063 and 2073 palm oil mill and 36
Ladang Ringlet Leasehold Between 1,834 Oil palm estate − 29,768 1989
2065 and 2081
LAHAD DATU REGION
Ladang Tungku Leasehold 2085 3,418 Oil palm estate − 98,551 1991*
Ladang Bornion Leasehold 2078 3,233 Oil palm estate and 51,243 1992
palm oil mill 25
Ladang Bukit Tabin Leasehold 2079 2,916 Oil palm estate − 87,535 1993
Ladang Segar Usaha Leasehold 2077 2,792 Oil palm estate − 68,657 1990*
Ladang Rimmer Leasehold 2085 2,726 Oil palm estate − 79,216 1991*
Ladang Sungai Silabukan Leasehold 2079 2,654 Oil palm estate − 32,180 1993
Ladang Lungmanis Leasehold 2085 1,656 Oil palm estate and 24,495 1991*
palm oil mill 23
SUGUT REGION
Ladang Sungai Sabang Leasehold Between 838 Oil palm estate 175,517 1999
2068 and 2098 2000
Leased Between 3,812 Oil palm estate and 1999
property 2031 and 2099 palm oil mill 22 2000, 2001
Ladang Rakanan Jaya Leasehold Between 3,294 Oil palm estate – 111,860 1999
North 2095 and 2099 2001
Leased Between 657 Oil palm estate – 1999
property 2032 and 2099 2000, 2001
Ladang Excellent Leasehold Between 2,986 Oil palm estate – 93,410 1997
Challenger I 2079 and 2095 2008
property 2033 and 2098 2000, 2001
Ladang Berakan Maju Leasehold Between 622 Oil palm estate – 107,873 1999
2079 and 2081
Leased Between 2,389 Oil palm estate – 1999
property 2031 and 2099 2000, 2001
Ladang Excellent Leasehold Between 920 Oil palm estate and 87,437 1997
Challenger II 2078 and 2095 palm oil mill 15 2008
Leased Between 1,939 Oil palm estate 2000
property 2032 and 2099
Ladang Rakanan Jaya Leasehold 2095 277 Oil palm estate – 29,245 1999
South 2001
property 2031 and 2098 2000, 2001
#
OTHER S

YEAR OF
SANDAKAN REGION
Ladang Minat Teguh Leasehold Between 2,788 Oil palm estate – 115,265 1997*
2077 and 2887 2000, 2004
property 2031 and 2099 2000, 2001
Ladang Desa Talisai North Leasehold 2082 2,415 Oil palm estate – 76,110 1997*
2002
Ladang Meliau Leasehold Between 2,206 Oil palm estate – 81,869 1997*, 1998
2087 and 2094 2000, 2002
property 2032 and 2097 2000, 2001
Ladang Desa Talisai South Leasehold 2082 1,637 Oil palm estate and 53,329 1997*
palm oil mill 31 2002
Ladang Sijas Leasehold 2087 1,011 Oil palm estate and 34,486 1997*
Seed Production, 21 2002
Training & Research
Centre
INDONESIA
SUMATRA
BANGKA BELITUNG REGION

Kebun Steelindo Wahana Hak Guna 2045 13,667 Oil palm estate, 198,673 1994
Perkasa Usaha palm oil mill, 23
refinery, kernel 10
crushing plant and 10
Kebun Parit Sembada Hak Guna 2045 3,828 Oil palm estate and 8,359 2003
Usaha palm oil mill 15
Kebun Alam Karya Hak Guna 2050, 2051 2,501 Oil palm estate − 42,517 2010
Sejahtera AKS Usaha and 2053
Kebun Bumi Makmur Hak Guna Application 382 Oil palm estate − 20,526 2009
Sejahtera Jaya Usaha in progress
RIAU REGION
Kebun Nilo Hak Guna 2028 12,860 Oil palm estate and 325,347 1996
Usaha palm oil mills 20 & 11
Hak Guna 2054 1,364 Oil palm estate 33,932 2005
Usaha
Kebun Mandau Hak Guna 2045 11,569 Oil palm estate, 124,820 1996
Usaha palm oil mill, 20
refinery, 10
kernel crushing plant 16
and biogas power 10
plant
Kebun Sekarbumi Hak Guna 2049 6,200 Oil palm estate and 45,223 2009
Alamlestari Usaha palm oil mill 27
NORTH SUMATRA REGION
P.T. Langkat Nusantara Leased 2039 21,160 Oil palm estate and 354,496 2009
Kepong** property palm oil mills 9&4
SOUTH SUMATRA REGION
Kebun Pinang Witmas Hak Guna 2034 14,738 Oil palm estate and 617,320 2021
Sejati Usaha palm oil mill 19
Hak Guna 2038 242 Oil palm estate
Usaha
#
** PT Langkat Nusantara Kepong operates on the property owned by the joint venture partner, PT Perkebunan Nusantara II

YEAR OF
LAMPUNG REGION
Kebun Prima Alumga Hak Guna 2046, 2029 8,504 Oil palm estate – 302,427 2010
Usaha & 2049
KALIMANTAN
NORTH KALIMANTAN REGION

Kebun Primabahagia Hak Guna 2046 7,731 Oil palm estate and 498,954 2008
Permai Usaha palm oil mill 3
Hak Guna Application 2,290 Oil palm estate 2008
Usaha in progress
Izin Lokasi Extension 1,487 – 2008
in progress
Hak Guna 2057 1,310 Oil palm estate 2008
Usaha
Usaha
EAST KALIMANTAN REGION
Kebun Jabontara Eka Karsa Hak Guna 2033 14,086 Oil palm estate and 183,732 2006
Kebun Putra Bongan Jaya Hak Guna 2044 11,602 Oil palm estate and 406,344 2018
Hak Guna Application 476 – 2018
Usaha in progress
Kebun Sinergi Agro Industri Hak Guna 2044 10,104 Oil palm estate and 507,976 2008
Usaha
Kebun Malindomas Hak Guna 2043 7,971 Oil palm estate − 88,099 2007
Perkebunan Usaha
Kebun Hutan Hijau Mas Hak Guna 2029 and 2043 7,288 Oil palm estate 66,844 2007
Usaha
Hak Guna 2029 29 Palm oil mill and 14 2009
Bangunan biogas power plant 7
Kebun Karya Bakti Hak Guna 2053 1,378 Oil palm estate – 171,475 2012
Sejahtera Agrotama Usaha
Hak Guna Application 2,885 Oil palm estate – 2017
Usaha in progress
Kebun Indonesia Plantation Hak Guna 2054 3,556 Oil palm estate 175,815 2009
Synergy Usaha
Hak Guna 2036 21 Palm oil mill and 7 2012
Bangunan biogas power plant 5
CENTRAL KALIMANTAN REGION
Kebun Karya Makmur Hak Guna 2051 9,397 Oil palm estate and 240,897 2007
Abadi Usaha palm oil mill 8
Kebun Mulia Agro Permai Hak Guna 2040 9,056 Oil palm estate and 142,634 2006
Kebun Menteng Jaya Sawit Hak Guna Application 1,796 Oil palm estate – 38,105 2007
Perdana Usaha in progress
LIBERIA
Palm Bay Estate Leasehold 2063 13,007 Oil palm estate, – 177,873 2013
Grand Bassa County palm oil mill, 5
bulking installation, 4
kernel crushing plant 4
and biogas power plant 2
#
OTHER S

MANUFACTURING
YEAR OF
YEAR OF TITLED BUILDINGS AMOUNTS LAST
LOCATION TENURE EXPIRY AREA# DESCRIPTION YEARS RM’000 REVALUATION
MALAYSIA
KL-Kepong Oleomas Leasehold 2097 19 Oleochemical factory 14 to 17 33,057 2004
Klang, Selangor
Palm-Oleo Freehold − 15 Oleochemical, soap 27 & 32 17,303 1991
Rawang, Selangor noodles and industrial 1994
amides factories
Palm-Oleo (Klang) Leased 2088 7 Oleochemical factory 32 & 42 24,976 2007
Klang, Selangor property
KLK Premier Oils Leasehold 2066 4 Kernel crushing plant 20 6,314 1998
Lahad Datu, Sabah and refinery 16
Leasehold 2110 2 PKC warehouse 14 4,510 2007
KL-Kepong Edible Oils Leasehold 2045 5 Refinery 40 6,010 1985
Pasir Gudang, Johor
KLK Hardwood Flooring Leasehold 2089 5 Parquet factory 29 2,644 1994
Ipoh, Perak
KL-Kepong Rubber Products Leasehold 2045 4 Industrial land – 23,174 2020
Ipoh, Perak Freehold − 3 Rubber gloves factory 39 2012
Fajar Palmkel Freehold – 16,000 Kernel crushing plant 4 29,106 2019
Rawang, Selangor sq m and refinery –
KLK Bioenergy Leasehold 2074 1 Biodiesel plant 38 2,731 2009
Shah Alam, Selangor
KLK Indahmas Leasehold 2097 52 Industrial land – 177,995 2019
Klang, Selangor
INDONESIA
PT KLK Dumai Leased 2031 12,876 Oleochemical factory 9 17,648 2011
Dumai Timur, Riau property sq m
PT Prima Dumai Leased 2025 1 Industrial land – 2,855 2021
Dumai Timur, Riau property
BELGIUM
KLK Tensachem SA Freehold − 10 Surfactant factory 16 to 93 23,555 2014
Ougree
CHINA
Taiko Palm-Oleo Leasehold 2054 20 Oleochemical factory 18 39,073 2004
(Zhangjiagang)
Zhangjiagang City, Jiangsu
Shanghai Jinshan Jingwei Leasehold 2052 2 Oleochemical factory 18 2,498 2008
Chemical,
Jinshan, Shanghai
GERMANY
KLK Emmerich Freehold − 21 Oleochemical factory 30 to 70 13,099 2010
Emmerich Am Rhein
KLK Emmerich Leasehold 2104 6 Oleochemical factory 18 to 113 38,353 2015
Dusseldorf
NETHERLANDS
KLK Kolb Specialties BV Freehold − 17 Chemical specialty 20 to 76 46,720 2018
Delden factory
Dr. W. Kolb Netherlands BV Freehold − 8 Ethoxylation factory 30 89,726 2007
Moerdijk
ITALY
Temix Oleo S.p.A., Freehold − 8 Oleochemical 30 to 60 36,976 2023
Calderara di Reno factory
SWITZERLAND
Dr. W. Kolb AG Freehold − 2 Ethoxylation factory 1 to 59 106,630 2007
Hedingen
#

PROPERTY
DEVELOPMENT
YEAR OF
MALAYSIA
Aura Muhibah Freehold – 1,012 Property development – 901,373 2016
Senai, Johor operating as oil palm
estate
KL-Kepong Country Homes Freehold 54 Property development − 28,991 1979
Ijok, Selangor Freehold − 658 Property development − 1979
Leasehold 2082, 2108 11 operating as oil palm 2010
and 2117 estate 2018
Colville Holdings Freehold − 421 Property development − 10,431 1985
Setul, Negeri Sembilan operating as oil
palm estate
KL-Kepong Property Freehold − 403 Property development − 168,685 2004
Development operating as oil palm
Gombak, Selangor estate
Leasehold 2094 1 Property development 1,405 2020
Palermo Corporation Freehold − 351 Property development − 13,017 1986
Bagan Samak, Kedah operating as oil
palm estate
Scope Energy Freehold − 203 Property development − 883,921 2016
Tanjung Kupang, Johor
KLK Park Homes Freehold – 102 Property development – 33,074 2020
Ijok, Selangor 34 Property development
operating as oil palm
estate
Kompleks Tanjong Malim Freehold − 172 Property development − 9,613 1979
Hulu Selangor, Selangor operating as oil palm
estate
KL-Kepong Property Freehold − 26 Property development − 391 1979*
Management operating as oil palm
Paloh, Johor estate
KL-Kepong Complex Freehold − 8 Property development − 3,168 1979
Sungai Buloh, Selangor
Menara KLK Freehold – 5,730 sq m Office Building 14 97,564 2021
Petaling Jaya, Selangor
#
OTHER S

OTHERS
YEAR OF
MALAYSIA
Stolthaven (Westport) Leased 2024 12 Bulking Installation 9 & 25 19,853 2006
Klang, Selangor property 2014
Wisma Taiko Freehold − 2,984 sq m Head Office building 38 33,567 1983
1, Jalan S.P. Seenivasagam Leasehold 2892 2,408 sq m 1,612 2000
Ipoh, Perak
Kelkay Bulking Installation Leased 2029 3,968 sq m Bulking installation 48 310 1975
Port Klang, Selangor property 2014
INDONESIA
SWP Bulking Installation Hak Guna 2035 20 Bulking installation 14 & 18 10,763 2005
Belitung Island Bangunan and jetty 17
PT Hutan Hijau Mas Hak Pakai 2035 8 Jetty 9 113 2010
Berau, East Kalimantan
SWP Warehouse Hak Guna 2026 49,875 Warehouse 18 948 2018
East Belitung Bangunan sq m
Citra Towers Sijil Issuance 1,148 sq m Office space 4 15,244 2021
Tower Utara Lantai 22 Hak Milik in process
Jalan Benyamin Suaeb
Kemayoran, Jakarta
AUSTRALIA
Chilimony Farm Freehold − 16,189 Cereal and cattle farm − 92,402 2012
Northampton 2013
Western Australia
Erregulla Farm Freehold − 10,215 Cereal and sheep farm − 38,528 2004*
Mingenew 2018
Western Australia
Mungedar Farm Freehold − 9,888 Cereal and cattle farm − 88,827 2014
Dandaragan 2016
Western Australia 2020
Tatchbrook Farm Freehold − 6,516 Cereal and sheep farm − 53,705 2015
Arthur River 2016
Western Australia 2017
Wyunga Farm Freehold – 5,678 Cereal farm – 31,395 2013
Dandaragan 2014
Western Australia
Warrening Gully Farm Freehold − 5,119 Cereal and sheep farm − 30,342 2004*
Williams 2014
Western Australia
Jonlorrie Farm Freehold − 4,927 Cereal and sheep farm − 71,655 2013
York 2014
Western Australia
#
SHARE PRICE & VOLUME TRADED
TOTAL VOLUME TRADED SHARE PRICE

(RM)
30,000,000 - - 25
20,000,000 -
- 20
10,000,000 -
0- - 15
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT
2022 2022 2022 2023 2023 2023 2023 2023 2023 2023 2023 2023
22.42 21.62 22.36 22.18 22.10 21.62 21.90 22.80 22.22 23.50 23.38 23.32
20.95 21.16 21.30 21.72 21.61 20.89 21.44 22.02 21.70 22.90 22.71 21.50
19.80 20.90 20.78 21.24 20.80 20.60 20.70 20.88 20.62 22.28 21.50 21.20
15,672,833 17,630,882 18,437,344 12,731,206 13,569,281 21,178,099 7,629,258 29,360,481 22,239,287 22,861,043 24,277,293 19,993,712
Highest Average Closing Lowest Total Volume

LEGEND:
Price (RM) Price (RM) Price (RM) Traded
CHANGES IN SHARE CAPITAL

CUMULATIVE ISSUED
NO. OF & PAID-UP SHARE
DATE SHARES NATURE OF CHANGE CAPITAL (RM)
06.07.73 2 Subscribers’ shares 2.00

01.10.73 147,500,374 Issue of shares under a scheme of reconstruction 147,500,376.00
26.05.76 5,000,000 Allotment of shares to the minority shareholders of Kepong Plantations Bhd (“KPB”) 152,500,376.00
in exchange for their shareholdings in KPB
10.05.78 15,000,000 Bumiputera issue at RM1.15 per share 167,500,376.00
30.04.81 167,500,376 Bonus issue of one (1) for one (1) 335,000,752.00
19.03.87 1,800,000 Special issue of shares to KLK Group’s employees at RM1.80 per share 423,700,752.00
15.08.92 51,500,000 Issue of shares to Batu Kawan Berhad (“BKB”) at RM3.60 per share in satisfaction 475,200,752.00
for the acquisition of BKB’s plantation assets and two (2) wholly-owned subsidiaries
02.04.96 237,600,376 Bonus issue of one (1) for two (2) 712,801,128.00
29.10.98 & (285,000) Shares bought back and cancelled 712,516,128.00
30.10.98
08.03.07 354,988,564 Bonus issue of one (1) for two (2) 1,067,504,692.00
31.01.19 - Amalgamation of RM285,000 from Capital Redemption Reserve account to Share 1,067,789,692.00
Capital pursuant to Section 618(8) of the Companies Act 2016
24.02.20 13,513,093 Issue of shares under Dividend Reinvestment Plan at the issue price of RM22.65 1,373,861,248.45
per share
08.02.21 105,216 Treasury shares transferred to eligible employees under an employees’ share grant 1,375,694,884.33
scheme at the transfer price of RM22.722 per share
14.02.22 269,122 Treasury shares transferred to eligible employees under an employees’ share grant 1,379,248,938.72
scheme at the transfer price of RM21.768 per share
02.02.23 & 272,363 Treasury shares transferred to eligible employees under an employees’ share grant 1,382,682,448.15
14.02.23 & 7,500 scheme at the transfer price of RM20.818 and RM21.259 per share respectively
OTHER S
SHAREHOLDING STATISTICS
AS AT 1 DECEMBER 2023
Issued Share Capital – 1,081,017,785 ordinary shares (including 2,581,799 treasury shares)
Voting Rights –O ne (1) vote per share in the case of a poll and one (1) vote per person on a show of hands
DISTRIBUTION OF SHAREHOLDINGS
NO. OF % OF ISSUED
SIZE OF SHAREHOLDINGS SHAREHOLDERS NO. OF SHARES SHARE CAPITAL
Less than 100 189 4,167 0.00
100 to 1,000 2,050 1,146,235 0.11
1,001 to 10,000 2,751 10,190,871 0.94
10,001 to 100,000 1,205 39,415,831 3.65
100,001 to less than 5% of issued shares 447 426,268,362 39.53
5% and above of issued shares 2 601,410,520 55.77
Total 6,644 1,078,435,986 100.00
THIRTY LARGEST SECURITIES ACCOUNT HOLDERS
% OF ISSUED
NAME NO. OF SHARES SHARE CAPITAL#
1. Batu Kawan Berhad 508,641,727 47.16
2. Citigroup Nominees (Tempatan) Sdn Bhd
– Employees Provident Fund Board 92,768,793 8.60
3. Maybank Nominees (Tempatan) Sdn Bhd
– Pledged Securities Account for Lembaga Kemajuan Tanah Persekutuan
(415321) 38,600,000 3.58
4. AmanahRaya Trustees Berhad
– Amanah Saham Bumiputera 22,502,300 2.09
– Exempt AN for AIA Bhd 12,356,873 1.15
6. Lembaga Tabung Haji 10,575,200 0.98
7. Permodalan Nasional Berhad 9,973,913 0.92
8. Cartaban Nominees (Asing) Sdn Bhd
– Exempt AN for State Street Bank & Trust Company (West CLT OD67) 8,412,500 0.78
– Great Eastern Life Assurance (Malaysia) Berhad (PAR 1) 8,273,640 0.77
10. Kumpulan Wang Persaraan (Diperbadankan) 7,684,121 0.71
– Amanah Saham Malaysia 3 7,523,539 0.70
12. HSBC Nominees (Asing) Sdn Bhd
– JPMCB NA for Vanguard Total International Stock Index Fund 7,460,544 0.69
– JPMCB NA for Vanguard Emerging Markets Stock Index Fund 7,148,657 0.66
– Public Ittikal Sequel Fund 6,811,400 0.63
– Jpmcb Na for Flexshares Morningstar Global Upstream Natural
Resources Index Fund 6,458,400 0.60
16. Batu Kawan Berhad 5,975,000 0.55
17. Cartaban Nominees (Tempatan) Sdn Bhd
– Pamb for Prulink Equity Fund 5,885,686 0.55
- Employees Provident Fund Board (Nomura) 5,540,400 0.51
19. Maybank Nominees (Tempatan) Sdn Bhd
– Maybank Trustees Berhad for Public Ittikal Fund (N14011970240) 5,250,000 0.49
20. Yeoh Chin Hin Investments Sdn Berhad 4,705,099 0.44
% OF ISSUED
NAME NO. OF SHARES SHARE CAPITAL#
21. Cartaban Nominees (Tempatan) Sdn Bhd
– Prudential Assurance Malaysia Berhad for Prulink Strategic Fund 4,360,500 0.40
22. Hsbc Nominees (Asing) Sdn Bhd
– Hsbc-Fs for Manulife Pacific Asia Equity Fund 4,256,000 0.39
– Employees Provident Fund Board (Cimb Prin) 3,886,345 0.36
24. Citigroup Nominees (Asing) Sdn Bhd
– Cb Spore Gw for Government of Singapore (Gic C) 3,642,052 0.34
25. Cartaban Nominees (Asing) Sdn Bhd
– BNYM SA/NV for People’s Bank of China (SICL ASIA EM) 3,544,059 0.33
26. Hsbc Nominees (Asing) Sdn Bhd
– Jpmcb Na for Vanguard Fiduciary Trust Company Institutional Total
International Stock Market Index Trust II 3,531,322 0.33
– Amanah Saham Malaysia 3,498,300 0.32
– Amanah Saham Malaysia 2 - Wawasan 3,495,000 0.32
– Public Islamic Equity Fund 3,392,100 0.31
– Employees Provident Fund Board (Aham Am) 3,377,200 0.31
Total 819,530,670 75.97
Note:
#
Calculated based on 1,078,435,986 shares (excluding 2,581,799 treasury shares).
SUBSTANTIAL SHAREHOLDERS BASED ON REGISTER OF SUBSTANTIAL SHAREHOLDERS
NO. OF SHARES
DIRECT DEEMED % OF ISSUED
NAME INTEREST INTEREST TOTAL SHARE CAPITAL#
1. Batu Kawan Berhad 514,616,727 – 514,616,727 47.72
2. Employees Provident Fund Board 115,878,104 a
– 115,878,104 10.75
3. Wan Hin Investments Sdn Berhad 455,430 514,616,727b 515,072,157 47.76
4. Tan Sri Dato’ Seri Lee Oi Hian 151,112 515,223,496c 515,374,608 47.79
5. Dato’ Lee Hau Hian 84,536 515,094,496b 515,179,032 47.77
6. Arusha Enterprise Sdn Bhd – 514,616,727 b
514,616,727 47.72
7. Grateful Blessings Foundation – 515,094,496b 515,094,496 47.76
8. Grateful Blessings Inc – 515,094,496 b
515,094,496 47.76
9. Di-Yi Sdn Bhd 22,339 515,072,157b 515,094,496 47.76
10. High Quest Anstalt – 515,094,496 b
515,094,496 47.76
11. Cubic Crystal Corporation – 515,094,496 b
515,094,496 47.76
12. High Quest Holdings Sdn Bhd 22,339 515,072,157b 515,094,496 47.76
Notes:
#
a
Includes those held through Citigroup Nominees (Tempatan) Sdn Bhd.
b
Deemed interest by virtue of Section 8(4) of the Companies Act 2016 (“Act”).
c
- Deemed interest in the shares held by his child; and
- Deemed interest by virtue of Section 8(4) of the Act. Nevertheless he does not have any economic or beneficial interest in the shares
of KLK as his deemed interest is held via the interest of his family members as discretionary beneficiaries of Grateful Blessings
Foundation (which said family members’ interest is held subject to the discretion of Grateful Blessings Foundation Council).
OTHER S
DIRECTORS’ SHAREHOLDINGS BASED ON REGISTER OF DIRECTORS’ SHAREHOLDINGS
DIRECT % OF ISSUED DEEMED % OF ISSUED

NAME INTEREST SHARE CAPITAL a INTEREST SHARE CAPITAL a
Shares in the Company
1. R. M. Alias 342,715 0.03 1,000b –c
2. Tan Sri Dato’ Seri Lee Oi Hian 151,112 0.01 515,223,496d 47.78
3. Dato’ Lee Hau Hian 84,536 0.01 515,094,496 e
47.76
4. Dato’ Yeoh Eng Khoon 340,176 0.03 4,838,476f 0.45
5. Quah Poh Keat – – – –
6. Anne Rodrigues 1,523 –c – –
7. Lee Jia Zhang 129,000 0.01 – –
8. Cheryl Khor Hui Peng – – – –
9. Tan Sri Shahril Ridza Bin Ridzuan 5,000 –c – –
DIRECT % OF ISSUED DEEMED % OF ISSUED

g
NAME INTEREST SHARE CAPITAL g INTEREST SHARE CAPITAL
Shares in the holding company,
Batu Kawan Berhad
1. Tan Sri Dato’ Seri Lee Oi Hian 1,665,428 0.42 218,590,309h 55.57
2. Dato’ Lee Hau Hian 1,583,444 0.40 215,924,419 i
54.89
3. Dato’ Yeoh Eng Khoon 323,564 0.08 22,105,474f 5.62
4. Anne Rodrigues 2,000 – c
– –
5. Lee Jia Zhang 10,271 –c – –
Notes:
a
b
Deemed interest in the shares held by his child.
c
Less than 0.01%.
d
- Deemed interest in the shares held by his child; and
- Deemed interest by virtue of Section 8(4) of the Act. Nevertheless he does not have any economic or beneficial interest in the shares
of KLK as his deemed interest is held via the interest of his family members as discretionary beneficiaries of Grateful Blessings
Foundation (which said family members’ interest is held subject to the discretion of Grateful Blessings Foundation Council).
e
Deemed interest by virtue of Section 8(4) of the Act.
f
Deemed interest in the shares held by his spouse and children, and by virtue of Section 8(4) of the Act.
g
Calculated based on 393,380,963 shares (excluding 6,154,500 treasury shares).
h
Deemed interest in the shares held by his children and a company by virtue of Section 8(4) of the Act. Tan Sri Dato’ Seri Lee Oi Hian
is also deemed to have an interest by virtue of Section 8(4) of the Act via other companies. Nevertheless he does not have any
economic or beneficial interest in the shares of Batu Kawan Berhad as his deemed interest is held via the interest of his family
members as discretionary beneficiaries of Grateful Blessings Foundation (which said family members’ interest is held subject to the
discretion of Grateful Blessings Foundation Council).
i
Deemed interest in the shares held by his child and by virtue of Section 8(4) of the Act.
By virtue of their deemed interests in the shares of the Company and its holding company, Tan Sri Dato’ Seri Lee Oi Hian and
Dato’ Lee Hau Hian are deemed to have an interest in the shares of the related corporations to the extent that the Company
and the holding company have interests.
Other than as disclosed above, none of the other Directors has any interest in the shares of its related corporations.
SUSTIANABILITY reporting index

This section provides a comprehensive overview of KLK’s reporting index to both Global Reporting Initiative (“GRI”) and
Bursa Malaysia Sustainability Reporting standards.
BURSA MALAYSIA
GLOBAL REPORTING INITIATIVE SUSTAINABILITY SECTION PAGE NO
REPORTING
GRI 2: General Disclosures 2021

2-1 Organizational details Corporate information 2-1
Entities included in the organization’s
2-2
sustainability reporting
Scope and
Reporting period, frequency and
2-3 basis of scope About this report & Scope
contact point 51
and boundary
2-4 Restatements of information
Statement of
2-5 External assurance
assurance
Activities, value chain and other Management discussion &
2-6 23-49
business relationships analysis
2-7 Employees C3 (a), C3 (b)
Workplace 76-79
2-8 Workers who are not employees C6 (b)
2-9 Governance structure and composition Sustainability governance 55
Nomination and selection of the
2-10
highest governance body
2-11 Chair of the highest governance body
Role of the highest governance body in Sustainability
2-12 governance
overseeing the management of impacts
Delegation of responsibility for
2-13
managing impacts
Role of the highest governance body in
2-14
sustainability reporting
Corporate governance
2-15 Conflicts of interest 107-120
overview statement
2-16 Communication of critical concerns
Collective knowledge of the highest
2-17
governance body
Evaluation of the performance of the
2-18
highest governance body
2-19 Remuneration policies
2-20 Process to determine remuneration
2-21 Annual total compensation ratio
Sustainability governance,
sustainability risk management,
Statement on sustainable development
2-22 climate change risks & 55-58
strategy
opportunities, ethical
business conduct
52-53, 58
Commitment pillars, https://www.klk.com.my/
2-23 Policy commitments ethical business conduct, sustainability/home2023/
KLK Website https://www.klk.com.my/
governance-policies/
Corporate disclosure policy and
2-24 Embedding policy commitments procedures, statement on risk 120, 121-125
management & internal control
Processes to remediate negative https://www.klk.com.my/
2-25 KLK Website
impacts sustainability/grievance/
https://www.klk.com.my/
Mechanisms for seeking advice and sustainability/grievance/
2-26 KLK Website
raising concerns https://www.klk.com.my/
governance-policies/
OTHER S
SUSTAINABILITY REPORTING INDEX

BURSA MALAYSIA
REPORTING
GRI 2: General Disclosures 2021
2-27 Compliance with laws and regulations Not available Not available
2-28 Membership associations List of associations 103
2-29 Approach to stakeholder engagement Stakeholder engagement 59-60
2-30 Collective bargaining agreements Workplace 89
GRI 3: Material Topics 2021
3-1 Process to determine material topics

Materiality Materiality assessment
3-2 List of material topics 61-63
assessment methodology
3-3 Management of material topics
GRI 201: Economic Performance 2016
Direct economic value generated and
201-1
distributed
Financial implications and other risks
201-2 and opportunities due to climate
change Financial statements 130-222
Defined benefit plan obligations and
201-3
other retirement plans
Financial assistance received from
201-4
government
GRI 202: Market Presence 2016
Ratios of standard entry level wage by
202-1 gender compared to local minimum Not available Not available
wage
Proportion of senior management hired Profile of key senior
202-2 17-18
from the local community management
GRI 203: Indirect Economic Impacts 2016
Infrastructure investments and services
203-1
supported
Community & biodiversity 92-103
Significant indirect economic
203-2
impacts
GRI 204: Procurement Practices 2016
Proportion of spending on local Supplier conduct -
204-1 C7 (a) 73
suppliers protecting workers’ rights
GRI 205: Anti-corruption 2016
Operations assessed for risks related
205-1 C1 (a)
to corruption
Communication and training about Anti-corruption - instilling
205-2 C1 (b) 86-87
anti-corruption policies and procedures integrity in our workforce
Confirmed incidents of corruption and
205-3 C1 (c)
actions taken
GRI 206: Anti-competitive Behavior 2016
Legal actions for anti-competitive

206-1 behavior, anti-trust, andmonopoly Not available Not available
practices

BURSA MALAYSIA
REPORTING
GRI 207: Tax 2019
207-1 Approach to tax

Effective audit and risk
Tax governance, control, and risk
207-2 management, statement
management
of risk management & 118-128
Stakeholder engagement and internal control, audit and
207-3 management of concerns related risk committee report
to tax
207-4 Country-by-country reporting Not available Not available
GRI 301: Materials 2016
301-1 Materials used by weight or volume S5 (a)

Agrochemical and raw material
301-2 Recycled input materials used
usage - continuous efforts 71
Reclaimed products and their for reduction
301-3
packaging materials
GRI 302: Energy 2016
Energy consumption within the

302-1 C4 (a)
organization
Energy consumption outside of the
302-2
organization
Environment 64-68
302-3 Energy intensity
302-4 Reduction of energy consumption
Reductions in energy requirements
302-5
of products and services
GRI 303: Water and Effluents 2018
Interactions with water as a shared

303-1
resource
Management of water discharge-
303-2
related impacts
Environment 69
303-3 Water withdrawal
303-4 Water discharge S8 (a)
303-5 Water consumption C9 (a)
GRI 304: Biodiversity 2016
Operational sites owned, leased,

managed in, or adjacent to, protected
304-1 S1 (a)
areas and areas of high biodiversity
value outside protected areas
Significant impacts of activities,
304-2
products and services on biodiversity Marketplace, Community &
72-75, 98-103
biodiversity
304-3 Habitats protected or restored S1 (b)
IUCN Red List species and national
304-4 conservation list species with habitats S1 (c)
in areas affected by operations
S1 (d)
OTHER S

BURSA MALAYSIA
REPORTING
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions C11 (a)

Energy indirect (Scope 2) GHG
305-2 C11 (b)
emissions
Other indirect (Scope 3) GHG
305-3 C11 (c)
emissions
305-4 GHG emissions intensity
Environment 65-68
305-5 Reduction of GHG emissions
Emissions of ozone-depleting
305-6
substances (ODS)
Nitrogen oxides (NOx), sulfur oxides

305-7 (SOx), and other significant air
emissions
GRI 306: Emissions 2016
Waste generation and significant

306-1
waste-related impacts
Management of significant
306-2
waste-related impacts
Environment 70-1
306-3 Waste generated
306-4 Waste diverted from disposal C10 (a)
306-5 Waste directed to disposal
GRI 308: Supplier Environmental Assessment 2016
New suppliers that were screened

308-1 S6 (a) 72-73
using environmental criteria
Marketplace, KLK Website https://www.klk.com.my/
Negative environmental impacts in the sustainability/grievance/
308-2 S6 (b)
supply chain and actions taken
GRI 401: Employment 2016
New employee hires and employee

401-1 C6 (c)
turnover
Benefits provided to full-time

Workplace 78-80
401-2 employees that are not provided to
temporary or part-time employees
401-3 Parental leave

GRI 402: Labor/Management Relations 2016
Minimum notice periods regarding

402-1 Not available Not available
operational changes

BURSA MALAYSIA
REPORTING
GRI 403: Occupational Health and Safety 2018
Occupational health and safety

403-1
management system
Hazard identification, risk assessment,
403-2
and incident investigation
403-3 Occupational health services
Worker participation, consultation, and
403-4 communication on occupational health
and safety
Worker training on occupational health
403-5 Workplace 81-84
and safety
403-6 Promotion of worker health
Prevention and mitigation of
403-7 occupational health and safety impacts
directly linked by business relationships
Workers covered by an occupational
403-8
health and safety management system
403-9 Work-related injuries C5 (a), C5 (b),
403-10 Work-related ill health C5 (c)
GRI 404: Training and Education 2016
Average hours of training per year per

404-1 C6 (a)
employee
Programs for upgrading employee
404-2 skills and transition assistance
Workplace 80, 85
programs
Percentage of employees receiving
404-3 regular performance and career
development reviews
GRI 405: Diversity and Equal Opportunity 2016
Diversity of governance bodies and Board composition,

405-1 112, 77-78
employees workplace
Ratio of basic salary and remuneration
of women to men
GRI 406: Non-discrimination 2016
Incidents of discrimination and

406-1 Workplace 87
corrective actions taken
GRI 407: Freedom of Association and Collective Bargaining 2016
Operations and suppliers in which the

407-1 right to freedom of association and Workplace 89
collective bargaining may be at risk
GRI 408: Child Labor 2016
73, 87
Operations and suppliers at significant
408-1 C6 (d) Marketplace, KLK Website https://www.klk.com.my/
risk for incidents of child labor
sustainability/grievance/
GRI 409: Forced or Compulsory Labor 2016
Operations and suppliers at significant 73, 87

409-1 risk for incidents of forced or C6 (d) Marketplace, KLK Website https://www.klk.com.my/
compulsory labor sustainability/grievance/
OTHER S

BURSA MALAYSIA
REPORTING
GRI 410: Security Practices 2016
Security personnel trained in human

rights policies or procedures
GRI 411: Rights of Indigenous Peoples 2016
73, 87
Incidents of violations involving rights
411-1 C6 (d) Marketplace, KLK Website https://www.klk.com.my/
of indigenous peoples
sustainability/grievance/
GRI 413: Local Communities 2016
Operations with local community

413-1 engagement, impact assessments, and C2 (a), C2 (b)
development programs 73
Operations with significant actual and sustainability/grievance/
413-2 potential negative impacts on local
communities
GRI 414: Supplier Social Assessment 2016
New suppliers that were screened

414-1 S7 (a) 73
using social criteria
Negative social impacts in the supply sustainability/grievance/
414-2 S7 (b)
chain and actions taken
GRI 415: Public Policy 2016
415-1 Political contributions Not available Not available

GRI 416: Customer Health and Safety 2016
Assessment of the health and safety

416-1 impacts of product and service
categories
Not available Not available
Incidents of non-compliance
416-2 concerning the health and safety
impacts of products and services
GRI 417: Marketing and Labeling 2016
Requirements for product and service

417-1
information and labeling
417-2 concerning product and service Not available Not available
information and labeling
417-3
concerning marketing communications
GRI 418: Customer Privacy 2016
Substantiated complaints concerning

418-1 breaches of customer privacy and C8 (a) Workplace 89
losses of customer data
NOTICE OF MEETING
Notice is hereby given that the Fifty-First Annual General Meeting of Kuala Lumpur Kepong Berhad (“KLK” or
“Company”) will be held at Conference Room, Ground Floor, Wisma Taiko, No. 1, Jalan S.P. Seenivasagam,
30000 Ipoh, Perak, Malaysia on Wednesday, 21 February 2024 at 11.00 a.m. for the following purposes:
AGENDA
As Ordinary Business
1. To receive the Audited Financial Statements for the year ended 30 September 2023 and the
Directors’ and Auditors’ reports thereon.
2. To re-elect the following Directors who retire by rotation in accordance with Article 119 of
the Company’s Constitution:
(i) Dato’ Yeoh Eng Khoon (Ordinary Resolution 1)
(ii) Mr. Quah Poh Keat (Ordinary Resolution 2)
(iii) Mr. Lee Jia Zhang (Ordinary Resolution 3)
3. To re-elect Tan Sri Shahril Ridza Bin Ridzuan who retires pursuant to Article 123 of the (Ordinary Resolution 4)
Company’s Constitution.
4. To approve the payment of Directors’ fees to the Non-Executive Directors for the year ended (Ordinary Resolution 5)
30 September 2023 amounting to RM2,282,797 (2022: RM2,333,000).
5. To approve the payment of Directors’ benefits (other than Directors’ fees) for the period from (Ordinary Resolution 6)
the Fifty-First Annual General Meeting to the Fifty-Second Annual General Meeting to be
held in 2025.
6. To re-appoint Messrs. BDO PLT as Auditors of the Company for the financial year ending (Ordinary Resolution 7)
30 September 2024 and to authorise the Board of Directors to fix their remuneration.
As Special Business
To consider and, if thought fit, to pass the following Resolutions:
7. P
ROPOSED RENEWAL OF AUTHORITY TO BUY BACK ITS OWN SHARES BY THE (Ordinary Resolution 8)
COMPANY
“THAT authority be given to the Company to buy back an aggregate number of shares in
the Company (“Authority to Buy Back Shares”) as may be determined by the Directors from
time to time through Bursa Malaysia Securities Berhad upon such terms and conditions
as the Directors may deem fit and expedient in the best interest of the Company provided
that at the time of purchase, the aggregate number of shares which may be purchased
and/or held by the Company as treasury shares pursuant to this resolution does not exceed
ten percent (10%) of the total number of issued shares of the Company and that the
maximum funds to be allocated for the Authority to Buy Back Shares shall not exceed the
latest audited retained profits of the Company;
THAT the shares purchased by the Company pursuant to Authority to Buy Back Shares may
be dealt with by the Directors in all or any of the following manner:
(a) distribute the shares as share dividends to the shareholders; or
(b) resell the shares or any of the shares on Bursa Malaysia Securities Berhad; or
(c) transfer the shares or any of the shares for the purposes of or under an employees’
share scheme; or
(d) transfer the shares or any of the shares as purchase consideration; or
(e) cancel the shares or any of the shares; or
(f) sell, transfer or otherwise use the shares for such other purposes as allowed by the
Companies Act 2016.
OTHER S
NOTICE OF MEETING
AND THAT the Directors be and are hereby empowered to do all such acts and things to give
full effect to the Authority to Buy Back Shares with full powers to assent to any conditions,
modifications, revaluations, variations and/or amendments (if any) as may be imposed by the
relevant authorities AND THAT such Authority shall commence upon passing of this ordinary
resolution and will expire at the conclusion of the next Annual General Meeting (“AGM”)
of the Company following the passing of this ordinary resolution or the expiry of the period
within which the next AGM is required by law to be held (unless earlier revoked or varied
by ordinary resolution of the shareholders of the Company in a general meeting) but not so
as to prejudice the completion of a purchase by the Company before the aforesaid expiry
date and, in any event, in accordance with the provisions of the guidelines issued by Bursa
Malaysia Securities Berhad or any other relevant authority.”
PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE FOR RECURRENT RELATED

8. (Ordinary Resolution 9)
PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE
“THAT approval be given to the Company and/or its subsidiary companies to enter into
recurrent transactions of a revenue or trading nature with related parties which are necessary
for the Company’s and/or its subsidiaries’ day-to-day operations and carried out in the
ordinary course of business on normal commercial terms not more favourable to the related
parties than those generally available to the public and are not to the detriment of the minority
shareholders as set out in the Appendix I of the Company’s Circular to Shareholders dated
29 December 2023 (“the Mandate”);
AND THAT the Directors be and are hereby empowered to do all such acts and things
(including executing all such documents as may be required) as they may consider expedient
or necessary to give full effect to the Mandate, with full powers to assent to any conditions,
modifications, revaluations, variations and/or amendments (if any) as may be imposed by the
relevant authorities AND THAT the Mandate shall commence upon passing of this ordinary
resolution and will expire at the conclusion of the next Annual General Meeting (“AGM”) of
the Company following the passing of this ordinary resolution or the expiry of the period
within which the next AGM is required by law to be held but shall not extend to such
extension as may be allowed pursuant to Section 340(4) of the Companies Act 2016 (unless
earlier revoked or varied by ordinary resolution of the shareholders of the Company in a
general meeting).”
9. P
ROPOSED RENEWAL OF THE AUTHORITY FOR DIRECTORS TO ALLOT AND (Ordinary Resolution 10)
ISSUE NEW ORDINARY SHARES IN THE COMPANY (“KLK SHARES”) IN RELATION
TO THE DIVIDEND REINVESTMENT PLAN THAT PROVIDES THE SHAREHOLDERS
OF THE COMPANY THE OPTION TO ELECT TO REINVEST THEIR CASH DIVIDEND
ENTITLEMENTS IN KLK SHARES (“DRP”)
“THAT pursuant to the DRP approved by the shareholders at the Annual General Meeting
(“AGM”) held on 13 February 2018 and subject to the approval of the relevant authorities
(if any), approval be and is hereby given to the Company to allot and issue such number of
KLK Shares pursuant to the DRP until the conclusion of the next AGM, upon such terms and
conditions and to such persons as the Directors may, in their absolute discretion, deem fit
and in the best interest of the Company PROVIDED THAT the issue price of the said KLK
Shares shall be fixed by the Directors at not more than ten percent (10%) discount to the
adjusted five (5)-day volume weighted average market price (“VWAMP”) of KLK shares
immediately prior to the price-fixing date, which VWAMP shall be adjusted ex-dividend
before applying the aforementioned discount in fixing the issue price;
AND THAT the Directors be and are hereby authorised to do all such acts and enter into all such
transactions, arrangements and documents as may be necessary or expedient in order to
give full effect to the DRP with full power to assent to any conditions, modifications, variations
and/or amendments (if any) as may be imposed or agreed to by any relevant authorities
or consequent upon the implementation of the said conditions, modifications, variations
and/or amendments, as they, in their absolute discretion, deem fit and in the best interest of
the Company.”
NOTICE OF MEETING
10. T
o transact any other business of which due notice shall have been given in accordance
with the Companies Act 2016.
By Order of the Board

YAP MIOW KIEN
SSM PC No. 202008000769
(MAICSA 7059013)
Company Secretary
Ipoh, Perak
Malaysia.
29 December 2023
Notes:
(1) Members Entitled to Attend
Only members whose names appear on the Register of Members or General Meeting Record of Depositors as at 14 February 2024
will be entitled to attend, speak and vote at this Annual General Meeting or appoint a proxy to attend, speak and vote on his/her behalf.
(2) Appointment of Proxy
(a) A member of the Company entitled to attend and vote at the meeting is entitled to appoint not more than two (2) proxies
to exercise all or any of his/her rights to attend, speak and vote at the same meeting on his/her behalf. A proxy may but
need not be a member of the Company. Where a member appoints two (2) proxies, the appointments shall be invalid unless
he/she specifies the proportion of his/her holdings to be represented by each proxy.
(b) The proxy form must be signed under the hand of the appointor or of his/her attorney duly authorised in writing or, if the
appointor is a corporation, under its common seal or where a corporation does not have a seal, by any two (2) of its authorised
officers or under the hand of its officer or attorney duly authorised and in the case of a corporation with a single director,
it shall be signed by the single director and countersigned by the company secretary of the corporation.
(c) Where a member of the Company is an authorised nominee as defined in the Securities Industry (Central Depositories)
Act 1991 (“Central Depositories Act”), it may appoint not more than two (2) proxies in respect of each securities account it
holds in ordinary shares of the Company standing to the credit of the said securities account.
(d) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for
multiple beneficial owners in one (1) securities account (“omnibus account”), there is no limit to the number of proxies which
the exempt authorised nominee may appoint in respect of each omnibus account it holds. An exempt authorised nominee
refers to an authorised nominee defined under the Central Depositories Act which is exempted from compliance with the
provisions of Subsection 25A(1) of the Central Depositories Act.
(e) Where a member or the authorised nominee appoints two (2) proxies, or where an exempt authorised nominee appoints
two (2) or more proxies, the proportion of shareholdings to be represented by each proxy must be specified in the instrument
appointing the proxies.
(f) The appointment of proxy may be made in a hardcopy form or by electronic means as specified below and must be received
by the Company not less than twenty-four (24) hours before the time appointed for the taking of the poll:
• In hardcopy form
The original proxy form shall be deposited at the Company Share Registrar’s office, Boardroom Share Registrars Sdn Bhd
(“Boardroom”), 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor,
Malaysia.
• Electronically
The proxy form can be electronically lodged with Boardroom via Boardroom Smart Investor Portal at

https://investor.boardroomlimited.com. Please follow the procedures set out in the Administrative Guide for such lodgement.
Alternatively, the proxy form can be emailed to Boardroom at bsr.helpdesk@boardroomlimited.com.
(g) The power of attorney or other authority (if any) under which it is signed or a notarially certified of that power or authority,
shall be deposited with Boardroom not less than twenty-four (24) hours before the time appointed for the taking of the poll.
(3) Explanatory Notes on Ordinary Businesses:
(a) Audited Financial Statements for the financial year ended 30 September 2023
The Audited Financial Statements are laid in accordance with Section 340(1)(a) of the Companies Act 2016 for discussion
only and do not require members’ approval. Hence, this item on the Agenda will not be put forward for voting by members of
the Company.
OTHER S
NOTICE OF MEETING
(b) Re-election of Directors
ato’ Yeoh Eng Khoon, Mr. Quah Poh Keat and Mr. Lee Jia Zhang who retire by rotation in accordance with the Company’s
D
Constitution and being eligible, have offered themselves for re-election at this Annual General Meeting.
Tan Sri Shahril Ridza Bin Ridzuan, who was appointed as a Director of the Company on 2 May 2023, also retires pursuant to the
Company’s Constitution and being eligible, had offered himself for re-election at this Annual General Meeting.
In determining the eligibility of the retiring Directors standing for re-election at this AGM, the Board had, via the Nomination
Committee (“NC”), assessed the performance and eligibility of the said retiring Directors, based on the following:
(i) the results and findings of the external Board & Directors Effectiveness Evaluation for the financial year (“FY”) 2023;
(ii) the Directors’ level of contribution to Board and Board Committees’ deliberations;
(iii) the level of independence demonstrated by the independent Directors (i.e. Mr. Quah Poh Keat and Tan Sri Shahril Ridza
Bin Ridzuan), and their ability to act in the best interests of the Company; and
(iv) the Directors’ fitness and propriety with reference to the Directors’ Fit and Proper Policy of the Company.
Based on the aforesaid assessment, the Board and NC are satisfied that each of the retiring Directors has met the following
criteria required of an effective and high-performance Board:
• willingness and the ability to challenge and ask the right questions;
• sound character and integrity in dealing with potential conflict of interest situations;
• commitment and time to serve the Company;
• fitness and propriety;
• competent and capable; and
• past contribution and performance.
Premised on the assessments, the Board approved the NC’s recommendation that the retiring Directors, namely Dato’ Yeoh
Eng Khoon, Mr. Quah Poh Keat, Mr. Lee Jia Zhang and Tan Sri Shahril Ridza Bin Ridzuan, be eligible to stand for re-election.
The profiles of the retiring Directors are set out in the Profile of Directors section of the Company’s Annual Report 2023.
(c) Payment of Directors’ Fees and Benefits
Section 230(1) of the Companies Act 2016 provides amongst others, that the Directors’ fees and any benefits payable to
the Directors of the Company and its subsidiaries shall be approved at a general meeting. In this respect, the Board agreed
that the members’ approval shall be sought at this Fifty-First Annual General Meeting on the Directors’ remuneration in
two (2) separate resolutions as below:
(i) Ordinary Resolution 5 – Payment of Directors’ Fees to the Non-Executive Directors
Payment of Directors’ fees to the Non-Executive Directors in respect of the FY 2023 is as below:
Board Audit and Risk Committee Other Board Committees

(RM) Per Annum (RM) Per Annum (RM) Per Annum
Non-Executive Chairman 540,000 35,000 25,000

Non-Executive Director/Member 270,000 25,000 15,000
(ii) Ordinary Resolution 6 - Payment of Directors’ Benefits (other than Directors’ Fees)
The payment of Directors’ benefits (other than Directors’ fees) for the period from the Fifty-First Annual General Meeting
to the Fifty-Second Annual General Meeting to be held in 2025 comprise:
Type of Benefit/Allowance Amount
Meeting Allowance (Board and Committees) RM2,000 per meeting

Travelling (Overseas) Allowance RM1,000 per day
Other Benefits • Company car, petrol and driver
• Discounts for purchase of Group/Company products
• Business travel, medical, insurance coverage, and other claimables
and reimbursables for the purpose of enabling the Directors to perform
their duties
NOTICE OF MEETING
(d) Re-appointment of Auditors and Audit Fees
The Audit and Risk Committee (“ARC”) had, at its meeting held on 21 November 2023, assessed the suitability and independence
of the External Auditors, Messrs. BDO PLT (“BDO”), and considered its engagement team, reporting, deliverables, fees and
non-audit services. The ARC also reviewed the information presented in the Annual Transparency Report of BDO.
The ARC was satisfied with the performance and suitability of BDO based on the quality of audit, competency and sufficiency of
resources of BDO in relation to the FY 2023 audit.
Having regard to the outcome of the annual assessment of BDO, the Board endorsed the ARC’s recommendation for members’
approval to re-appoint BDO as the External Auditors of the Company for FY 2024 and to authorise the Directors to fix their
remuneration under Ordinary Resolution 7.
(4) Explanatory notes on Special Businesses:
(i) Ordinary Resolution 8 - Proposed Renewal of Authority to Buy Back Shares
Ordinary Resolution 8 proposed under Item 7 of the Agenda, if passed, will empower the Directors of the Company to buy
back the Company’s own shares through Bursa Malaysia Securities Berhad at any time within the time period stipulated by
utilising the funds allocated out of the audited retained profits of the Company.
(ii) Ordinary Resolution 9 - Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a
Revenue or Trading Nature (“Proposed Shareholders’ Mandate”)
Ordinary Resolution 9 proposed under Item 8 of the Agenda, if passed, will enable the Group to enter into Recurrent Related
Party Transactions of a Revenue or Trading Nature in the ordinary course of business which are necessary for the Group’s
day-to-day operations and on normal commercial terms not more favourable to the related parties than those generally available
to the public, and are not to the detriment of the minority shareholders of the Company.
The procurement of the Proposed Shareholders’ Mandate would reduce substantially administrative time, effort and expenses
associated with the convening of separate general meetings to seek members’ approval as and when potential Recurrent
Related Party Transactions arise.
(iii) Ordinary Resolution 10 - Proposed Renewal of Authority for Directors to Allot and Issue KLK Shares in relation to
Dividend Reinvestment Plan
The shareholders had, at the Forty-Fifth Annual General Meeting held on 13 February 2018, approved the authority for
the Directors to allot and issue KLK Shares in relation to Dividend Reinvestment Plan (“DRP”) and such authority will expire at
the conclusion of this Annual General Meeting.
Ordinary Resolution 10 proposed under Item 9 of the Agenda, if passed, will give authority to the Directors to allot and issue
KLK Shares pursuant to the DRP in respect of any dividends declared, and such authority shall expire at the conclusion of
the next Annual General Meeting of the Company.
The authority given for Ordinary Resolutions 8, 9 and 10 mentioned above unless revoked or varied at a general meeting, will expire
at the conclusion of the next Annual General Meeting of the Company. Further information on Ordinary Resolutions 8 and 9 is
set out in the Circular to Shareholders of the Company dated 29 December 2023 which is available on the Company’s website,
www.klk.com.my.
OTHER S
Notis Mesyuarat
NOTIS DENGAN INI DIBERIKAN bahawa Mesyuarat Agung Tahunan Kuala Lumpur Kepong Berhad
(“KLK” atau “Syarikat”) yang Ke-Lima Puluh Satu akan diadakan di Bilik Persidangan, Aras Bawah, Wisma Taiko,
No. 1, Jalan S.P. Seenivasagam, 30000 Ipoh, Perak, Malaysia pada hari Rabu, 21 Februari 2024 pada pukul 11.00 pagi
untuk tujuan-tujuan berikut:
Agenda
Sebagai Urusan Biasa
1.
Untuk menerima Penyata Kewangan Teraudit bagi tahun berakhir 30 September 2023
berserta Laporan Pengarah dan Juruaudit yang berkaitan dengannya.
2.
Untuk memilih semula para Pengarah berikut yang bersara mengikut giliran menurut
Artikel 119 Perlembagaan Syarikat:
(i) Dato’ Yeoh Eng Khoon (Resolusi Biasa 1)
(ii) Encik Quah Poh Keat (Resolusi Biasa 2)
(iii) Encik Lee Jia Zhang (Resolusi Biasa 3)
3. Untuk memilih semula Tan Sri Shahril Ridza Bin Ridzuan yang bersara menurut Artikel 123 (Resolusi Biasa 4)
Perlembagaan Syarikat.
4.
Untuk meluluskan pembayaran fi Pengarah kepada para Pengarah Bukan Eksekutif (Resolusi Biasa 5)
berjumlah RM2,282,797 bagi tahun berakhir 30 September 2023 (2022: RM2,333,000).
5.
Untuk meluluskan pembayaran faedah para Pengarah (selain daripada fi para Pengarah) (Resolusi Biasa 6)
bagi tempoh dari Mesyuarat Agung Tahunan Syarikat yang Ke-Lima Puluh Satu sehingga
Mesyuarat Agung Tahunan Syarikat yang Ke-Lima Puluh Dua yang akan diadakan pada
tahun 2025.
6. Untuk melantik semula Tetuan BDO PLT sebagai Juruaudit Syarikat bagi tahun kewangan (Resolusi Biasa 7)
berakhir 30 September 2024 dan memberi kuasa kepada para Pengarah untuk menetapkan
saraan Tetuan BDO PLT.
Sebagai Urusan Khas
Untuk mempertimbangkan dan jika difikirkan sesuai, meluluskan Resolusi-Resolusi berikut:
7. CADANGAN PEMBAHARUAN KUASA UNTUK MEMBELI BALIK SYER SYARIKAT (Resolusi Biasa 8)

“BAHAWA kuasa diberikan kepada Syarikat untuk membeli balik agregat syer Syarikat
(“Kuasa untuk Membeli Balik Syer”) sepertimana yang ditentukan oleh para Pengarah dari
semasa ke semasa melalui Bursa Malaysia Securities Berhad berdasarkan terma dan syarat
yang dianggap sesuai dan wajar oleh para Pengarah demi kepentingan Syarikat tertakluk
dengan syarat bahawa pada masa pembelian, bilangan agregat syer yang boleh dibeli
dan/atau dipegang oleh Syarikat sebagai syer perbendaharaan menurut resolusi ini adalah
tidak melebihi sepuluh peratus (10%) daripada jumlah bilangan syer terbitan Syarikat dan
dana maksimum yang diperuntukkan kepada Kuasa untuk Membeli Balik Syer tidak melebihi
jumlah keuntungan terkumpul Syarikat yang terkini dan telah diaudit;
BAHAWA syer yang dibeli oleh Syarikat menurut Kuasa untuk Membeli Balik Syer boleh
diuruskan oleh para Pengarah mengikut semua atau mana-mana cara yang berikut:
(a) membahagikan syer tersebut sebagai dividen kepada para pemegang syer; atau
(b) menjual semula syer tersebut atau mana-mana bahagian daripada syer itu melalui Bursa
Malaysia Securities Berhad; atau
(c) memindah milik syer tersebut atau mana-mana bahagian daripada syer itu bagi tujuan
atau di bawah perlaksanaan skim syer pekerja; atau
(d)
memindah milik syer tersebut atau mana-mana bahagian daripada syer itu sebagai
balasan pembelian; atau
(e) membatalkan syer tersebut atau mana-mana bahagian daripada syer itu; atau
(f)
menjual, memindah milik atau selainnya menggunakan syer itu bagi lain-lain tujuan
sepertimana yang dibenarkan oleh Akta Syarikat 2016.
Notis Mesyuarat

DAN BAHAWA para Pengarah adalah dan dengan ini diberi kuasa untuk melaksanakan
semua tindakan dan perkara yang berkaitan bagi memberi kesan sepenuhnya kepada Kuasa
untuk Membeli Balik Syer untuk menyetujui dan mematuhi apa-apa syarat, pengubahsuaian,
penilaian semula, variasi dan/atau pindaan (jika ada) seperti yang mungkin dikenakan oleh
pihak berkuasa yang berkaitan; DAN BAHAWA Kuasa tersebut akan bermula pada
masa resolusi biasa ini diluluskan dan akan tamat pada penamatan Mesyuarat Agung
Tahunan (“MAT”) Syarikat yang berikutnya, berikutan kelulusan resolusi biasa ini atau
penamatan tempoh di mana MAT yang berikutnya sepatutnya diadakan mengikut syarat
undang-undang (melainkan ditarik balik lebih awal atau diubah melalui resolusi biasa pemegang
syer Syarikat dalam mesyuarat agung), namun tidak boleh menggugat penyempurnaan
pembelian oleh Syarikat sebelum tarikh akhir yang dinyatakan dan, dalam apa jua keadaan,
menurut peruntukan garis panduan yang dikeluarkan oleh Bursa Malaysia Securities Berhad
atau pihak berkuasa lain yang berkenaan.”
CADANGAN PEMBAHARUAN MANDAT PEMEGANG SYER UNTUK TRANSAKSI PIHAK
8. (Resolusi Biasa 9)
BERKAITAN YANG BERULANG BAGI PENDAPATAN ATAU PERDAGANGAN

“BAHAWA kelulusan diberikan kepada Syarikat dan/atau syarikat subsidiarinya untuk
menjalankan transaksi berulang yang melibatkan pendapatan atau perdagangan dengan
pihak berkaitan di mana transaksi berulang ini adalah penting dan diperlukan bagi operasi
harian Syarikat dan/atau subsidiarinya, dan hendaklah dilaksanakan di dalam urus niaga biasa
dengan mengikut terma-terma komersial biasa di mana tidak memberi kelebihan kepada pihak
yang berkaitan selain daripada yang biasanya tersedia kepada pihak umum dan tidak
menggugat kepentingan pemegang syer minoriti sepertimana yang dinyatakan dalam Appendik
I Surat Pekeliling Syarikat kepada Pemegang Syer bertarikh 29 Disember 2023 (“Mandat”);
DAN BAHAWA para Pengarah adalah dan dengan ini diberi kuasa untuk melaksanakan semua
tindakan dan perkara (termasuk menandatangani semua dokumen yang diperlukan) yang
dianggap perlu atau penting bagi melaksanakan sepenuhnya Mandat, termasuk mematuhi
apa-apa syarat, pengubahsuaian, penilaian semula, variasi dan/atau pindaan (jika ada)
sepertimana yang dikenakan oleh pihak-pihak berkuasa yang berkenaan; DAN BAHAWA
Mandat tersebut akan bermula selepas kelulusan resolusi biasa ini dan akan tamat pada
masa penamatan Mesyuarat Agung Tahunan (“MAT”) Syarikat yang berikutnya, berikutan
kelulusan resolusi biasa ini atau penamatan tempoh di mana MAT yang berikutnya sepatutnya
diadakan mengikut undang-undang, tetapi tidak dilanjutkan sepertimana yang dibenarkan
menurut Seksyen 340(4) Akta Syarikat 2016 (melainkan ditarik balik lebih awal atau diubah
melalui resolusi biasa pemegang syer Syarikat dalam mesyuarat agung).”
9. C
ADANGAN PEMBAHARUAN KUASA KEPADA PARA PENGARAH UNTUK (Resolusi Biasa 10)
MEMPERUNTUKKAN DAN MENERBITKAN SYER BIASA BARU SYARIKAT (“SYER KLK”)
BERHUBUNG DENGAN PELAN PELABURAN SEMULA DIVIDEN YANG MEMBERIKAN
OPSYEN KEPADA PARA PEMEGANG SYER SYARIKAT UNTUK MELABUR SEMULA
DIVIDEN TUNAI KE DALAM SYER KLK (“PELAN PELABURAN SEMULA DIVIDEN”)

“BAHAWA menurut Pelan Pelaburan Semula Dividen yang telah diluluskan oleh para
pemegang syer pada Mesyuarat Agung Tahunan (“MAT”) yang diadakan pada 13 Februari 2018
dan tertakluk kepada kelulusan pihak berkuasa yang berkenaan (jika ada), Syarikat dengan
ini diberi kuasa untuk memperuntukkan dan menerbitkan sejumlah Syer KLK mengikut Pelan
Pelaburan Semula Dividen sehingga penamatan MAT yang berikutnya, tertakluk kepada terma
dan syarat sebagaimana yang para Pengarah boleh, mengikut budi bicara mutlak mereka,
dianggap wajar dan demi kepentingan terbaik Syarikat DENGAN SYARAT harga terbitan
Syer KLK tersebut akan ditetapkan oleh para Pengarah tidak melebihi sepuluh peratus (10%)
diskaun dari nilai harga pasaran purata wajaran lima (5)-hari (“NHPPW”) yang diselaraskan bagi
syer KLK sejurus sebelum tarikh penetapan harga, yang mana NHPPW hendaklah diselaraskan
ex-dividen sebelum menggunakan diskaun yang dinyatakan dalam penentuan harga terbitan;
DAN BAHAWA para Pengarah adalah dan dengan ini diberi kuasa untuk melakukan segala
tindakan berkenaan dan melaksanakan semua urusniaga, pengaturan dan dokumen berkenaan
sebagaimana perlu atau wajar untuk memberi kesan sepenuhnya kepada Pelan Pelaburan
Semula Dividen dengan kuasa penuh untuk menerima sebarang syarat, pengubahsuaian,
variasi dan/atau pindaan (jika ada) sepertimana yang dikenakan atau dipersetujui oleh
mana-mana pihak berkuasa yang berkaitan ataupun kesan daripada pelaksanaan syarat,
pengubahsuaian, variasi dan/atau pindaan tersebut, sepertimana yang para Pengarah boleh,
mengikut budi bicara mutlak mereka, anggap wajar dan demi kepentingan terbaik Syarikat.”
OTHER S
Notis Mesyuarat
10. U
ntuk melaksanakan sebarang urusan lain yang mana notis sewajarnya telah diberikan
menurut Akta Syarikat 2016.
Dengan Perintah Lembaga Pengarah

YAP MIOW KIEN
SSM PC No. 202008000769
(MAICSA 7059013)
Setiausaha Syarikat
Ipoh, Perak
Malaysia.
29 Disember 2023
Nota:
(1) Kelayakan Pemegang Syer untuk Menghadiri Mesyuarat
Hanya pemegang syer yang namanya terkandung di dalam Rekod Pendeposit atau Daftar Anggota pada 14 Februari 2024 adalah
layak untuk menghadiri, bersuara dan mengundi di Mesyuarat Agung Tahunan ini atau melantik proksi untuk menghadiri, bersuara dan
mengundi bagi pihaknya.
(2) Pelantikan Proksi
(a) Pemegang syer Syarikat yang layak untuk hadir dan mengundi pada mesyuarat ini berhak melantik tidak lebih daripada
dua (2) proksi untuk menjalankan segala atau mana-mana haknya untuk menghadiri, bersuara dan mengundi pada mesyuarat
yang sama bagi pihaknya. Seseorang proksi mungkin tetapi tidak semestinya pemegang syer Syarikat. Sekiranya pemegang
syer Syarikat melantik dua (2) proksi, pelantikan tersebut dianggap tidak sah melainkan pemegang syer Syarikat menyatakan
bahagian pegangannya untuk diwakili setiap proksi.
(b) Surat cara pelantikan proksi hendaklah ditandatangani oleh pelantik atau perwakilan kuasa secara bertulis, atau sekiranya
pelantik adalah anggota korporat, di bawah meterai syarikat atau dimana anggota korporat tidak mempunyai meterai, hendaklah
ditandatangani oleh mana-mana dua (2) pegawai yang diberi kuasa atau oleh pegawainya atau perwakilan kuasa dan sekiranya
Syarikat dengan pengarah tunggal, surat cara pelantikan hendaklah ditandatangani oleh pengarah tunggal dan ditandatangani
balas oleh setiausaha syarikat berkenaan.
(c) Bagi nomini yang sah sebagai pemegang syer Syarikat sepertimana yang didefinisikan dalam Akta Perindustrian Sekuriti
(Depositori Pusat) 1991 (“SICDA”), beliau adalah layak melantik tidak melebihi dua (2) proksi bagi setiap akaun sekuriti yang
dipegangnya dalam syer biasa Syarikat, dalam unit berdasarkan kredit akaun sekuriti tersebut.
(d) Bagi nomini yang sah berkecualian sebagai pemegang syer Syarikat yang memegang syer biasa dalam Syarikat bagi beberapa
pihak pemilik benefisial dalam satu (1) akaun sekuriti (“akaun omnibus”), tiada had proksi yang boleh dilantik bagi setiap
akaun omnibus yang dipegang. Nomini yang sah berkecualian merujuk kepada nomini yang sah yang didefinisikan di bawah
SICDA yang dikecualikan daripada mematuhi peruntukan Subseksyen 25A(1) SICDA.
(e) Di mana pemegang syer atau nomini yang sah melantik dua (2) proksi, atau di mana nomini yang sah berkecualian melantik
dua (2) atau lebih proksi, kadar pemegangan syer yang diwakili oleh setiap proksi hendaklah dinyatakan dalam surat cara
pelantikan proksi tersebut.
(f) Pelantikan proksi boleh dibuat secara salinan cetak atau secara elektronik seperti yang dinyatakan di bawah dan hendaklah
diterima oleh Syarikat dalam tempoh tidak kurang daripada dua puluh empat (24) jam sebelum masa yang ditetapkan bagi
menjalankan pengundian:
• Secara Salinan Cetak
Salinan asal borang proksi hendaklah diserahkan ke pejabat Pendaftar Saham Syarikat, Boardroom Share Registrars
Sdn Bhd (“Boardroom”), Aras 11, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya,
Selangor, Malaysia.
• Secara Elektronik
Borang proksi boleh diserahkan secara elektronik kepada Boardroom melalui Boardroom Smart Investor

di https://investor.boardroomlimited.com. Sila ikuti prosedur yang terdapat dalam Panduan Pentadbiran (Administrative
Guide) untuk tujuan serahan tersebut. Sebagai alternatif, borang proksi boleh di hantar melalui e-mel kepada Boardroom di
bsr.helpdesk@boardroomlimited.com.
(g) Surat kuasa wakil atau kuasa lain (sekiranya ada) yang ditandatangani atau salinan yang diperakui oleh yang diberi kuasa
atau pihak berkuasa tersebut hendaklah diserahkan ke pejabat Boardroom dalam tempoh tidak kurang daripada
dua puluh empat (24) jam sebelum masa yang ditetapkan bagi menjalankan pengundian.
(3) Nota Penjelasan berkenaan Urusan-urusan Biasa:
(a) Penyata Kewangan Teraudit bagi tahun kewangan berakhir 30 September 2023
Penyata Kewangan Teraudit dibentangkan menurut Seksyen 340(1)(a) Akta Syarikat 2016 hanyalah untuk tujuan perbincangan
sahaja dan tidak memerlukan kelulusan rasmi daripada para pemegang syer. Oleh yang demikian, perkara dalam Agenda ini tidak
akan dibentangkan untuk pengundian oleh para pemegang syer Syarikat.
Notis Mesyuarat
(b) Pemilihan semula Para Pengarah
Dato’ Yeoh Eng Khoon, Encik Quah Poh Keat dan Encik Lee Jia Zhang yang bersara mengikut giliran menurut
Perlembagaan Syarikat dan layak, telah menawarkan diri mereka untuk dipilih semula di Mesyuarat Agung Tahunan ini.
Tan Sri Shahril Ridza Bin Ridzuan, yang dilantik sebagai Pengarah Syarikat pada 2 Mei 2023, juga bersara menurut
Perlembagaan Syarikat dan layak, telah menawarkan diri beliau untuk dipilih semula pada Mesyuarat Agung Tahunan ini.
Dalam menentukan kelayakan para Pengarah yang bersara untuk dipilih semula di Mesyuarat Agung Tahunan ini, Lembaga
Pengarah telah menilai prestasi dan kelayakan para Pengarah yang bersara tersebut melalui Jawatankuasa Pencalonan,
berdasarkan perkara berikut:
(i) hasil dan keputusan Penilaian Keberkesanan Lembaga & Pengarah luaran untuk tahun kewangan 2023;
(ii) tahap sumbangan para Pengarah yang bersara tersebut dalam perbincangan di kalangan Lembaga Pengarah dan
Jawatankuasa Lembaga Pengarah;
(iii) tahap kemandirian yang dipamerkan oleh para Pengarah bebas (iaitu Encik Quah Poh Keat dan Tan Sri Shahril Ridza Bin
Ridzuan), dan keupayaan mereka untuk bertindak demi kepentingan terbaik Syarikat; dan
(iv) kesesuaian tatasusila dan kendiri para Pengarah selaras dengan Dasar Kelayakan dan Kewajaran Pengarah Syarikat.
Berdasarkan penilaian tersebut, Lembaga Pengarah dan Jawatankuasa Pencalonan berpuas hati bahawa setiap Pengarah yang
bersara telah memenuhi kriteria-kriteria berikut yang diperlukan oleh Lembaga Pengarah yang efektif dan berprestasi tinggi:
• Bersedia dan mempunyai keupayaan untuk mencabar dan mengajukan soalan yang sesuai;
• Karakter dan integriti dalam mengendalikan situasi-situasi konflik kepentingan;
• Komitmen dan masa untuk berkhidmat kepada Syarikat;
• Kesesuaian tatasusila dan kendiri;
• Kecekapan dan kebolehan; dan
• Sumbangan dan prestasi.
Justeru, Lembaga Pengarah telah meluluskan cadangan Jawatankuasa Pencalonan bahawa para Pengarah yang bersara,
iaitu Dato’ Yeoh Eng Khoon, Encik Quah Poh Keat, Encik Lee Jia Zhang dan Tan Sri Shahril Ridza Bin Ridzuan, layak untuk
mencalonkan diri dalam pemilihan semula.
Profil para Pengarah yang bersara adalah seperti yang terdapat dalam bahagian Profil Pengarah Laporan Tahunan Syarikat 2023.
(c) Pembayaran Fi dan Faedah Para Pengarah
Menurut Seksyen 230(1) Akta Syarikat 2016, pembayaran fi Pengarah dan apa-apa faedah yang perlu dibayar kepada Pengarah
Syarikat dan pengarah subsidiarinya hendaklah diluluskan pada suatu mesyuarat agung. Dalam hal ini, Lembaga Pengarah
bersetuju untuk mendapatkan kelulusan daripada para pemegang syer bagi saraan Pengarah dalam resolusi-resolusi berikut
pada Mesyuarat Agung Tahunan yang Ke-Lima Puluh Satu:
(i) Resolusi Biasa 5 – Pembayaran Fi Pengarah kepada Pengarah Bukan Eksekutif
Pembayaran fi Pengarah kepada Pengarah Bukan Eksekutif bagi tahun kewangan 2023 adalah seperti berikut:
Jawatankuasa Audit dan Jawatankuasa

Lembaga Pengarah Risiko Lembaga Lain
(RM) Setahun (RM) Setahun (RM) Setahun
Pengerusi Bukan Eksekutif 540,000 35,000 25,000

Pengarah Bukan Eksekutif/Ahli 270,000 25,000 15,000
(ii) Resolusi Biasa 6 - Pembayaran Faedah Pengarah (selain daripada fi Pengarah)
Pembayaran faedah Pengarah (selain daripada fi Pengarah) bagi tempoh dari Mesyuarat Agung Tahunan yang
Ke-Lima Puluh Satu sehingga Mesyuarat Agung Tahunan yang Ke-Lima Puluh Dua yang akan diadakan pada tahun 2025
terdiri daripada:
Jenis faedah/elaun Amaun
Elaun Mesyuarat (Lembaga Pengarah dan RM2,000 setiap mesyuarat

Jawatankuasa Lain)
Elaun Perjalanan (Luar Negara) RM1,000 sehari
Faedah lain • Kereta syarikat, petrol dan pemandu
• Diskaun untuk pembelian produk-produk Kumpulan/Syarikat
• Perjalanan perniagaan, perubatan, perlindungan insurans, dan segala
bayaran balik dan tuntutan bagi para Pengarah menjalankan tugasnya
OTHER S
Notis Mesyuarat
(d) Pelantikan semula Juruaudit dan Bayaran Yuran
Jawatankuasa Audit dan Risiko pada mesyuaratnya yang diadakan pada 21 November 2023, telah menilai kesesuaian dan
kemandirian Juruaudit Luar, Tetuan BDO PLT (“BDO”), dan mempertimbangkan penglibatan pasukannya, pelaporan, prestasi
kerja, yuran dan perkhidmatan bukan audit yang diberikan. Jawatankuasa Audit dan Risiko juga meneliti maklumat yang
dibentangkan dalam Laporan Ketelusan Tahunan BDO.
Jawatankuasa Audit dan Risiko berpuas hati dengan prestasi dan kesesuaian BDO berdasarkan kualiti audit, kecekapan serta
kecukupan sumber BDO berhubung dengan audit bagi tahun kewangan 2023.
Memandang kepada keputusan penilaian tahunan BDO, Lembaga Pengarah telah menyokong cadangan Jawatankuasa
Audit dan Risiko untuk kelulusan para pemegang syer untuk pelantikan semula BDO sebagai Juruaudit Luar Syarikat bagi
tahun kewangan 2024 dan memberi kuasa kepada para Pengarah untuk menetapkan saraan BDO di bawah Resolusi Biasa 7.
(4) Nota Penjelasan berkenaan Urusan-urusan Khas:
(i) Resolusi Biasa 8 - Cadangan Pembaharuan Kuasa Beli Balik Syer
Resolusi Biasa 8 yang dicadangkan di bawah Agenda 7, jika diluluskan, akan memberi kuasa kepada para Pengarah Syarikat
untuk membeli balik syer Syarikat melalui Bursa Malaysia Securities Berhad pada bila-bila masa dalam tempoh yang ditetapkan
dengan menggunakan dana yang diperuntukkan daripada keuntungan tersimpan Syarikat yang telah diaudit.
(ii) Resolusi Biasa 9 - Cadangan Pembaharuan Mandat Pemegang Syer untuk Transaksi Pihak Berkaitan yang berulang
melibatkan Pendapatan atau Perdagangan (“Cadangan Mandat Pemegang Syer”)
Resolusi Biasa 9 yang dicadangkan di bawah Agenda 8, jika diluluskan, akan membolehkan Kumpulan melakukan Transaksi
Dagangan Sering Berulang dengan Pihak-pihak yang Berkaitan dalam urusan perniagaan biasa yang diperlukan untuk operasi
harian Kumpulan Syarikat dan dilakukan mengikut terma-terma komersial biasa yang tidak berat sebelah berbanding dengan
yang tersedia ada untuk pihak umum dan tidak menggugat kepentingan para pemegang syer minoriti Syarikat.
Dengan memperolehi Mandat Pemegang Syer yang dicadangkan, masa pentadbiran, kesulitan dan perbelanjaan yang berkaitan
dengan mengadakan mesyuarat agung yang berasingan akan dapat dijimatkan tanpa menjejaskan objektif Korporat Kumpulan
Syarikat dan peluang perniagaan yang sedia ada kepada Kumpulan.
(iii) Resolusi Biasa 10 – Cadangan Pembaharuan Kuasa kepada para Pengarah untuk Memperuntukkan dan Menerbitkan
Syer KLK berhubung dengan Pelan Pelaburan Semula Dividen
Para pemegang syer telah meluluskan dan memberi kuasa kepada para Pengarah untuk memperuntukkan dan menerbitkan
Syer KLK di bawah Pelan Pelaburan Semula Dividen pada Mesyuarat Agung Tahunan yang Ke-Empat Puluh Lima yang telah
diadakan pada 13 Februari 2018, dan kuasa tersebut akan tamat pada penamatan Mesyuarat Agung Tahunan Syarikat ini.
Resolusi Biasa 10 yang dicadangkan di bawah Agenda 9, jika diluluskan, akan memberi kuasa kepada para Pengarah untuk
memperuntukkan dan menerbitkan Syer KLK di bawah Pelan Pelaburan Semula Dividen selaras dengan mana-mana dividen
diisytiharkan, dan kuasa tersebut habis tempoh pada penamatan Mesyuarat Agung Tahunan Syarikat yang akan datang.
Kuasa yang diberikan untuk Resolusi Biasa 8, 9 dan 10 yang dinyatakan di atas, melainkan ditarik balik atau diubah pada mesyuarat
agung, akan tamat pada penamatan Mesyuarat Agung Tahunan Syarikat yang berikutnya. Maklumat lanjut mengenai Resolusi
Biasa 8 dan 9 dapat diperolehi dalam Surat Pekeliling kepada Pemegang Syer Syarikat bertarikh 29 Disember 2023 yang boleh
didapati di laman web Syarikat, www.klk.com.my.
This page has been intentionally left blank.
PROXY FORM
NO. OF SHARES HELD CDS ACCOUNT NO. TEL. NO.
I/We _____________________________________________________________________________________________________________________________
(full name in capital letters as per NRIC/Passport/Certificate of Incporporation)
NRIC/Passport/Company No. ___________________________________________________________________________________________________
of ______________________________________________________________________________________________________________________________
being (a) member(s) of KUALA LUMPUR KEPONG BERHAD hereby appoint
________________________________________________________________________ NRIC/Passport No. ___________________________________

(full name in capital letters as per NRIC/Passport)
*and/or ________________________________________________________________ NRIC/Passport No. ___________________________________

(full name in capital letters as per NRIC/Passport)
or failing him THE CHAIRMAN OF THE MEETING as my/our proxy/proxies to vote for me/us and on my/our behalf at
the Annual General Meeting of the Company to be held at Conference Room, Ground Floor, Wisma Taiko, No. 1,
Jalan S.P. Seenivasagam, 30000 Ipoh, Perak, Malaysia on Wednesday, 21 February 2024 at 11.00 a.m. and at any adjournment
thereof, and to vote as indicated below:
Resolution Relating to: For Against

Re-election of Directors pursuant to Article 119 of the Company’s Constitution:
1 Dato’ Yeoh Eng Khoon
2 Mr. Quah Poh Keat
3 Mr. Lee Jia Zhang
4 Re-election of Tan Sri Shahril Ridza Bin Ridzuan pursuant to Article 123 of the Company’s
Constitution
5 Payment of Directors’ fees
6 Payment of Directors’ benefits
7 Re-appointment of Auditors and their remuneration
8 Proposed Renewal of Authority to Buy Back Shares
9 Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions
10 Proposed Renewal of Authority for Directors to Allot and Issue New KLK Shares in relation
to the Dividend Reinvestment Plan
Please indicate with a tick (✓) how you wish your vote to be cast
For appointment of two (2) proxies, percentage of
shareholding to be represented by the proxies:
Percentage (%)
Proxy 1 _______________________________________________
Signature of Shareholder/Common Seal
Proxy 2
* Please delete if inapplicable. Date: _________________________________________
Notes:
(a) A member of the Company entitled to attend and vote at the meeting is entitled to • In hardcopy form
appoint not more than two (2) proxies to exercise all or any of his/her rights to attend, The original proxy form shall be deposited at the Company Share Registrar’s
speak and vote at the same meeting on his/her behalf. A proxy may but need not be a office, Boardroom Share Registrars Sdn Bhd (“Boardroom”), 11th Floor, Menara
member of the Company. Where a member appoints two (2) proxies, the appointments Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya,
shall be invalid unless he/she specifies the proportion of his/her holdings to be Selangor, Malaysia.
represented by each proxy. • Electronically
(b) The proxy form must be signed under the hand of the appointor or of his/her attorney The proxy form can be electronically lodged with Boardroom via Boardroom
duly authorised in writing or, if the appointor is a corporation, under its common seal Smart Investor Portal at https://investor.boardroomlimited.com. Please follow the
or where a corporation does not have a seal, by any two (2) of its authorised officers or procedures set out in the Administrative Guide for such lodgement. Alternatively,
under the hand of its officer or attorney duly authorised and in the case of a corporation the proxy form can be emailed to Boardroom at bsr.helpdesk@boardroomlimited.com.
with a single director, it shall be signed by the single director and countersigned by the (g) T
he power of attorney or other authority (if any) under which it is signed or a notarially
company secretary of the corporation. certified of that power or authority, shall be deposited with Boardroom not less than
(c) W
here a member of the Company is an authorised nominee as defined in the Securities twenty-four (24) hours before the time appointed for the taking of the poll.
Industry (Central Depositories) Act 1991 (“Central Depositories Act”), it may appoint (h) O
nly members whose names appear on the Register of Members or General Meeting
not more than two (2) proxies in respect of each securities account it holds in ordinary Record of Depositors as at 14 February 2024 will be entitled to attend, speak and
shares of the Company standing to the credit of the said securities account. vote at this Annual General Meeting or appoint a proxy to attend, speak and vote on
(d) W
here a member of the Company is an exempt authorised nominee which holds his/her behalf.
ordinary shares in the Company for multiple beneficial owners in one (1) securities Personal Data Privacy
account (“omnibus account”), there is no limit to the number of proxies which the
exempt authorised nominee may appoint in respect of each omnibus account it holds. By submitting the proxy form, the member (i) consents to the Company (and/or
An exempt authorised nominee refers to an authorised nominee defined under the its agents/service providers) collecting, using and disclosing the personal data therein in
Central Depositories Act which is exempted from compliance with the provisions of accordance with the Personal Data Protection Act 2010, for the purpose of the Annual
Subsection 25A(1) of the Central Depositories Act. General Meeting, including any adjournment thereof and (ii) warrants that where the
member discloses the personal data of the member’s proxy(ies), attorney(s) and/or
(e) W
here a member or the authorised nominee appoints two (2) proxies, or where an representative(s) to the Company (and/or its agents/service providers), the member has
exempt authorised nominee appoints two (2) or more proxies, the proportion of obtained the prior consent of such persons for the collection, use and disclosure by
shareholdings to be represented by each proxy must be specified in the instrument the Company (and/or its agents/service providers) of the personal data of such persons
appointing the proxies. for the purpose of the Annual General Meeting, including any adjournment thereof, and
(f) T
he appointment of proxy may be made in a hardcopy form or by electronic means as (iii) agrees that the member will indemnify the Company in respect of any penalties, liabilities,
specified below and must be received by the Company not less than twenty-four (24) claims, demands, losses and damages as a result of the member’s breach of warranty.
hours before the time appointed for the taking of the poll:
FOLD HERE
AFFIX
STAMP HERE
KUALA LUMPUR KEPONG BERHAD

C/O: BOARDROOM SHARE REGISTRARS SDN BHD
11th Floor, Menara Symphony
No. 5, Jalan Prof. Khoo Kay Kim
Seksyen 13
46200 Petaling Jaya
Selangor
Malaysia
FOLD HERE
DIRECTORY
PLANTATION
REGISTERED OFFICE/PRINCIPAL SABAH (SANDAKAN OFFICE) LIBERIA (MAIN OFFICE)

PLACE OF BUSINESS Wisma KLK Sandakan Suite 301
Wisma Taiko Lot 1, Jalan Bandar Utama Hotel Buchanan
No. 1, Jalan S.P. Seenivasagam Mile 6, Jalan Utara Grand Bassa County
30000 Ipoh, Perak, Malaysia 90000 Sandakan Republic of Liberia
Tel : +605-240 8000 Sabah, Malaysia Tel : +231 8 803 86594
Fax : +605-240 8115 Tel : +6089-667 721 Email : info@epo-lr.co
Email : cosec@klk.com.my Fax : +6089-667 728
INDONESIA (MAIN OFFICE)
SABAH (TAWAU OFFICE) Citra Towers, North Towers, 22nd Floor
Mile 40, Tawau-Semporna Highway JI. Benyamin Suaeb Blok A6
91000 Tawau Kebon Kosong
Sabah, Malaysia Kemayoran Jakarta Pusat PROPERTY
Tel : +6089-975 111 DKI Jakarta 10630 DEVELOPMENT
Fax : +6089-975 445 Indonesia
Tel : +62 21 3952 3900 - 03
Fax : +62 21 3952 3904
KLK LAND SDN BHD
Suite 1A-1, Level 1
Menara KLK
1 Jalan PJU 7/6
Mutiara Damansara
47810 Petaling Jaya
Selangor, Malaysia
MANUFACTURING Tel : +603-7726 1868
Fax : +603-7726 2868
Email : info@klkland.com.my
GROUP MANUFACTURING KOLB DISTRIBUTION AG

CORPORATE OFFICE Maienbrunnenstrasse 1
Level 8, Menara KLK CH-8908 Hedingen
1 Jalan PJU 7/6 Switzerland TEMIX OLEO S.p.A.
Mutiara Damansara Tel : +41 44 762 4646 HEADQUARTERS
47810 Petaling Jaya Fax : +41 44 762 4600 Via Piero Portaluppi. 17
Selangor, Malaysia Email : info@kolb.ch 20138 Milano
Tel : +603-7809 8833 Website : www.kolb.ch ITALY
Fax : +603-7725 9858 Tel : +39 02 509 9431
Email : enquiry@klkoleo.com KLK OLEO AMERICAS INC. Fax : +39 02 5099 4300
Website : www.klkoleo.com 7600 Jericho Turnpike E-mail : global@temixoleo.com
Woodbury, New York 11797 Website : www.temixoleo.com
PALM-OLEO SDN BHD Tel : +1 516 584 6268
PALMAMIDE SDN BHD Email : info.americas@klkoleo.com PLANT SITE
KSP MANUFACTURING SDN BHD Via Giuseppe Garibaldi, 10
Lot 1245 KLK EMMERICH GmbH 40012 Calderara di Reno (BO)
Kundang Industrial Estate Steintor 9 ITALY
48020 Rawang 46446 Emmerich Am Rhein Tel : +39 051 646 7220
Selangor, Malaysia Germany Fax : +39 051 646 7296
Tel : +603-6034 4800 Tel : +49 0 2822 720
Fax : +603-6034 1279 Fax : +49 0 2822 72 276 KLK OLEO (SHANGHAI) CO LTD
Email : info.europe@klkoleo.com Room 1603-1604, 16th Floor
KL-KEPONG OLEOMAS SDN BHD Website : www.klkoleo.com/klkemmerich Liziyuan Tower
25 Jalan Sungai Pinang 5/18 No. 4711, Jiao Tong Road
Fasa 2D KLK TENSACHEM SA Pu Tuo District
Taman Perindustrian Pulau Indah Rue de Renory 28 Shanghai 200331, China
42920 Pelabuhan Klang 4102 Seraing (Ougree) Tel : +86 21 3636 1130
Selangor, Malaysia Belgium Fax : +86 21 3636 1163
Tel : +603-3101 2633 Tel : +32 4 338 9389 Email : info.china@klkoleo.com
Fax : +603-3101 3299 Fax : +32 4 338 9500
Email : info.tensachem@klkoleo.com TAIKO PALM-OLEO (ZHANGJIAGANG)
PALM-OLEO (KLANG) SDN BHD Website : www.tensachem.com CO LTD
Lot 1 & 2, Solok Waja 3 No. 60, Chang Jiang Road
Bukit Raja Industrial Estate Jiangsu Yangtze River International
P.O. Box 83 Chemical Industry Park
41710 Klang Zhangjiagang City
Selangor, Malaysia Jiangsu Province 215633, China
Tel : +603-3341 2115 Tel : +86 512 8259 2028
Fax : +603-3342 7877 Fax : +86 512 8259 2027
Email : info.china@klkoleo.com
KUALA LUMPUR KEPONG BERHAD
Wisma Taiko
No. 1, Jalan S.P. Seenivasagam
30000 Ipoh, Perak Darul Ridzuan, Malaysia
Tel : +605-240 8000
Fax : +605-240 8115

Annual Report 2023

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2023

2 Corporate Information 130 Report of the Directors

5 Corporate Profile 137 Statements of Financial

107 Corporate Governance 224 Properties Held by the Group

126 Audit and Risk Committee 236 Sustainability Reporting

128 Additional Compliance 242 Notice of Meeting

LEE JIA ZHANG

CHERYL KHOR HUI PENG

 an Sri Shahril Ridza Bin Ridzuan

COMPANY SECRETARY SHARE REGISTRAR

GENERAL 30000 Ipoh, Perak

ANNOUNCEMENT OF QUARTERLY RESULTS

First Quarter Second Quarter Third Quarter Fourth Quarter

Announcement Entitlement Date Payment Date

Announcement Entitlement Date* Payment Date*

* will be announced in due course

EARNINGS PER SHARE

* Based on closing price on 30 September 2023

Kuala Lumpur Kepong Berhad (“KLK”) started as

In order to optimise value across the supply chain,

In 1990, KLK started capitalising on the strategic

• Offering quality products and services at competitive prices.

• Being a good and responsible corporate citizen.

• Earning a fair return on investments.

• Maintaining steady dividend payments and adequate dividend cover.

• Sustaining growth through re-investment of retained profits.

• Maintaining a high standard of business ethics and practices.

• Fulfilling our social responsibilities in the community in which we operate.

Lahad Datu, Sabah

LOCATION OF THE GROUP’S OPERATIONS

PLANTATION MANUFACTURING PROPERTY DEVELOPMENT OTHERS (FARMING)

Peninsular Malaysia, Malaysia

Western Australia, Australia

EARNINGS PER SHARE SHAREHOLDERS’ EQUITY

DIVIDEND YIELD DIVIDEND PAYOUT RATIO

RETURN ON SHAREHOLDERS’ EQUITY RETURN ON TOTAL ASSETS

NET TANGIBLE ASSETS PER SHARE NET DEBT TO EQUITY

SIMPLIFIED GROUP ASSETS & LIABILITIES

TOTAL EQUITY & LIABILITIES

Shareholders’ Equity RM14,319 million 48% RM14,287 million 47%

R. M. ALIAS TAN SRI DATO’ SERI LEE OI HIAN

Aged 91 Male Malaysian Aged 72 Male Malaysian

Meeting Attendance: 8/8 Meeting Attendance: 8/8

He is the Chairman of Batu Kawan Berhad, a company

DATO’ LEE HAU HIAN DATO’ YEOH ENG KHOON

Meeting Attendance: 7/8 Meeting Attendance: 8/8

QUAH POH KEAT ANNE RODRIGUES

Meeting Attendance: 8/8 Meeting Attendance: 8/8

Currently, he is a Director of LPI Capital Bhd, Paramount

LEE JIA ZHANG CHERYL KHOR HUI PENG

Aged 40 Male Malaysian Aged 49 Female Malaysian

Meeting Attendance: 7/8 Meeting Attendance: 8/8

Tan Sri Shahril Ridza Bin Ridzuan

Meeting Attendance: 6/6*

Appointed to the Board on 2 May 2023.

Tan Sri Shahril Ridza Bin Ridzuan holds a Masters in

Tan Sri Shahril is currently the Chairman of Axiata Group

Previously, Tan Sri Shahril led Khazanah Nasional Berhad

PROFILE OF KEY SENIOR MANAGEMENT

an Sri Shahril Ridza Bin Ridzuan

• Offering quality products and services at competitive prices.

• Earning a fair return on investments.

• Maintaining steady dividend payments and adequate dividend cover.

• Sustaining growth through re-investment of retained profits.

• Fulfilling our social responsibilities in the community in which we operate.

- attributable to equity holders of

SUMATRA South Sumatra 68. Palm Bay Estate