MS 2530 : 2013 OUR CLIENTS OF SELECTION NEWSLETTER OF MALAYSIAN SUSTAINABLE PALM OIL (MSPO)

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ISSUE 01 NEWSLETTER OF MALAYSIAN SUSTAINABLE PALM OIL (MSPO) JAN 2016 MS 2530 : 2013 OUR CLIENTS OF SELECTION MSPO Certificates presentation at JC Chang Group s Headquarter (Start from left) Mr. Calvin Chow (JC Chang s Plantation Executive), Mr. Soong Keng Vee (General Manager of DQS CFS Malaysia), Mr. Tee Swee Kee (JC Chang s Plantation Director).and Mr. Seow Chee Chiang (JC Chang s Estate Department Manager Sustainability). While Others Are Watching, One Has Shown Full Commitment Towards Sustainability All JC Chang s Oil Palm Primary Cultivation Areas & Palm Oil Mills are MSPO Certified Being sustainable is being responsible and this is ONLY achievable with commitment from the Top Management of any responsible organization. JC Chang Group has shown Malaysian Oil Palm Industry a very good example its commitment & supports towards Malaysian sustainability scheme MSPO. On Oct 2015, yet another production unit Takon Production Unit was MSPO certified. It mean all JC Chang s primary oil palm cultivation areas and palm oil mills are MSPO certified, which approximately 17000 hectares of oil palm planted areas and 300000 MT of FFB are MSPO certified by DQS. This should be benchmarking by all Malaysian oil palm operators to show the world Malaysian Oil Palm Industry s commitment towards sustainability!

OUR CLIENTS OF SELECTION MSPO Certificates presentation at Achi Jaya Headquarter Front Row from the right: DQS CFS General Manager Mr. Soong Keng Vee, Senior Manager- Estates - Mr. Wee Kow Ngoh, Mill Manager- Mr. Yong Sieng Poh Back from Right :SHO- Ms. Nabila Huda, Financial Controller Mr. Safuddin Aspan, Act Plant Manager- Mr. Chew Kong Choi, SGE Manager- Mr. Muhammad Feizal Franslin, JLE Manager Mr. Ahmad Nazri Hashim, CLE Manager- Mr. Shukree Osman, Commercial Manager- Mr. Khairul Anuar Ahmad, DSM Sustainability/OSH- Mr. Azman Samsuri, OSH Assistant Manager- Mr. Raman Krishnan Full Commitment and Support From the Southern Tip Of Asia Continent Towards Malaysian Sustainability Palm Oil Scheme Located at the southern state of Peninsular Malaysia, Achi Jaya Plantations Sdn. Bhd. has shown its operation in compliance with MS 2530-3 & MS 2530-4 respectively for its 3 plantations and 1 palm oil mills. Not only demonstrating its commitment towards palm oil sustainability, it also showed full support of Malaysian very own palm oil sustainability scheme. DQS Malaysia is proud as part of Achi Jaya s Sustainability success as its MSPO Certification Partner!

PUBLIC TRAINING JAN~APR 2016 KLANG VALLEY 21 JAN 2016 MSPO AWARENESS 25 JAN 2016 MSPO DOCUMENTATION 15 MAR 2016 OSH & ENVIRONMENTAL LEGAL REQUIREMENT 28 MAR ~ 1 APR 2016 MSPO LEAD AUDITOR 12 ~ 14 APR 2016 MSPO INTERNAL AUDIT KUCHING 22 FEB 2016 MSPO AWARENESS 23 FEB 2016 MSPO DOCUMENTATION The MSPO Lead Auditor Course on 14th ~ 18th December 2015 at Best Western Hotel, I-City Shah Alam. This MSPO Awareness course is designed for participants who wish to gain knowledge of MSPO requirements, National Standards on sustainability applicable to palm oil industry supply chain from plantation to oil mills and refineries. It focuses on the interpretation and implementation of MSPO requirements, legal and specific requirements in compliance with MSPO. JOHOR BAHRU 7 APR 2016 MSPO AWARENESS 8 APR 2016 MSPO DOCUMENTATION PENANG 27 APR 2016 MSPO AWARENESS 28 APR 2016 MSPO DOCUMENTATION For enquiries, please contact Ms. Aidah Azman at +6017-2211231 or email to cfstraining@dqs.com.my Participants from various company have joined the training eg; Ladang Rakyat Terengganu Sdn Bhd, TUV Nord (M) Sdn Bhd, Felda Technoplant Sdn Bhd, Sharikat Keratong Sdn Bhd, etc.

OUR CLIENTS OF SELECTION Higher CPO output seen in 2016 KUALA LUMPUR: Malaysia s total palm oil production may breach the 20 million tonne level for the first time this year, according to the Malaysian Palm Oil Board (MPOB). Director-general Datuk Choo Yuen May said that the industry should perform better this year as the Government rolled out measures to stabilise palm oil prices and reduce the stock. The replanting scheme incentive and the biodiesel programme implemented will reduce CPO stocks and strengthen the palm oil price. Due to a marginal increase in mature area this year, CPO production is projected to increase marginally by 7% to 20.1 million tonnes this year from 19.96 million tonnes in last year, she said at the Palm Oil Economic Review and Outlook Seminar 2016 yesterday. She added that crude palm production will be very much influenced by an increase of 3% in matured area, especially in Sarawak. The Government scheme aims to replant 83,000 hectares of unproductive oil palms nationwide, which will result in reduction of 250,000 tonnes of CPO output. Last year, CPO production rose to 19.96 million tonnes from 19.67 million tonnes in 2014 despite the higher stocks and stronger competition for market share from other vegetable oils and fats. Exports also increased, slightly higher at 25.3 million tonnes worth RM60.1bil compared with 25.07 million tonnes, or RM63.62bil in 2014. Meanwhile, Kenanga Research expects inventories to normalise to less than two million tonnes by the end of the first quarter this year because of high existing stock levels. Furthermore, weather forecasters generally agree that El Nino was likely to continue over the first quarter, it said in a note. In the short-term, continued dry weather should further boost CPO prices in the first half due to positive investment sentiment, while in the medium-term, the potential production impact would be felt in the fourth quarter, it said. We believe the declining stock trend and weaker production outlook should provide a short-term catalyst to lift CPO prices in the first half, it added. The average price of CPO for last year was RM2,153.50 per tonne, a decrease of 9.6% compared with RM2,383.50 in 2014. On biodiesel, Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas said the B10 programme will use up about one million tonnes of CPO to ease the inventory. Malaysia s latest biodiesel programme involves the blending of 10% palm-based biodiesel with 90% fossil fuel petroleum diesel, that is set to replace the B7. He said that the B7 biodiesel programme implemented last year, saw an annual consumption of 575,000 tonnes of palm oil. Source from: The Star Newspaper dated 20 Jan 2016

Who can be certified? MSPO Independent smallholder (MS 2530-2) organized smallholder (MS 2530-3) Planta on (MS 2530-3) RSPO ISCC Mill (MS 2530-4) Planta on & Mill (based from P&C ~ Producer / Grower cer fica on) Chain of custody and Refinery (supply chain cer fica on systems) Planta on, smallholder (under group management), first gathering point, conversion unit (Mill, KCP refinery, biofuel plant) ISPO warehouse / storage tank / trader Planta on, mill For more details, please email to mspo@dqs.com.my or visit our website at www.dqs.com.my

Plantation (Ha) DQS MSPO Certified Data** Certified FFB Output (MT) Mill CPO Output** (MT) Plantation (Ha) To Be Certified FFB Output (MT) Mill CPO Output** (MT) 65000 1190000 1180000 62000 980000 440000 22 Planta ons 19 Planta ons 2 Smallholders Group 3 Mills 7 Mills For more details, please email to mspo@dqs.com.my or visit our website at www.dqs.com.my

CALENDAR OF ACTIVITIES Jan - April 2016 MSPO Lead Auditor Training 28th Mar. until 1st Apr. 2016 MSPO Awareness Training 21st Jan. 2016 22rd Feb. 2016 7th Apr. 2016 27th Apr. 2016 Kuching Johor Bahru Penang MSPO Documentation Process 25th Jan. 2016 23th Feb. 2016 8th Apr. 2016 28th Apr. 2016 Kuching Johor Bahru Penang

CALENDAR OF ACTIVITIES Jan - April 2016 OSH & Environmental Legal Requirement Management 15th Mar. 2016 MSPO Internal Audit 12th ~ 14th Apr. 2016 The MSPO Public Training is your first step towards a professional career as a MSPO auditor. Through this course, you will learn how to schedule, plan, lead and execute a successful MSPO audit for any organization related to oil palm plantations. The MSPO Public Training will be a prerequisite for demonstrating basic competency for conducting, evaluating and reviewing the MSPO Principles & Criteria. Limited spaces are available, so drop us an email soon to secure a seat. Closing date for registration is one week before actual date. For enquiries, please contact Ms. Aidah Azman at +6017-2211231 or email to cfstraining@dqs.com.my & mspo@dqs.com.my Published by : DQS Certification (M) Sdn. Bhd. (689316-X) Suite 43-4 Setia Avenue, Jalan Setia Prima S U13/S, Setia Alam Seksyen U13, 40170 Shah Alam, Selangor, Malaysia. Tel : +603-3342 3259 (Hunting Line) Fax : +603-33583299 Email : mspo@dqs.com.my www.dqs.com.my / www.dqs.de / www.dqs-holding.com / www.dqscert.com / www.dqs-cfs.com / www.gc-mark.com