CONTENTS company, Rimbunan Sawit Berhad. SUBUR TIASA HOLDINGS BERHAD (341792-W) 7: PROFILE OF...

2 Financial Highlights

3 Export Market Highlights

4 Corporate Information

5 ProfileofDirectors 8 ProfileofKeySeniorManagement

9 CorporateStructure 10 Chairman’sStatement

14 CorporateSocialResponsibility

18 Awards&Recognitions 19 CorporateGovernanceStatement

30 Additional Compliance Information

32 StatementonRiskManagementandInternalControl

34 AuditCommitteeReport

36 StatementofDirectors’Responsibilityinrespect oftheFinancialStatements 37 FinancialStatements

127 List of Properties

128 AnalysisofShareholdings

129 ListofSubstantialShareholders

129 Directors’Interests

130 Listof30LargestSecuritiesAccountsHolders

131 NoticeofAnnualGeneralMeeting

135 Appendix A

ProxyForm

SUBURTIASAHOLDINGSBERHAD(341792-W)

CONTENTS

SUBUR TIASA HOLDINGS BERHAD (341792-W)

2

FYE 2016 FYE 2015

FINANCIAL HIGHLIGHTS

2012 2013 2014 2015 2016RM'000 RM'000 RM'000 RM'000 RM'000

Revenue 665,844 768,843 887,116 754,031 554,603

ProfitBeforeTax 47,145 20,086 50,974 2,366 (37,260)

ProfitAfterTax 34,340 16,092 38,627 2,555 (38,277)

EBITDA 120,375 102,673 159,818 124,781 76,782

EquityAttributtabletoEquityHolders 655,695 664,796 705,904 673,509 629,596

TotalAssets 944,373 1,074,532 1,235,679 1,273,761 1,257,420

NetAssetsPerShare(RM) 3.49 3.53 3.75 3.58 3.35

BREAKDOWN OF REVENUE BY SEGMENT

NET ASSETS PER SHARERM

3.75

3.58

3.35

3.53

3.49

2016

2015

2014

2013

2012

EQUITY ATTRIBUTTABLE TO EQUITY HOLDERS

RM’Million

706

674

630

665

656

2016

2015

2014

2013

2012

TOTAL ASSETSRM’Million

1,236

1,274

1,257

1,075

944

2016

2015

2014

2013

2012

REVENUERM’Million

887

754

555

769

666

2016

2015

2014

2013

2012

91% TimberOperationsandReforestation

9% OilPalmOperations

RM555 MILLION

94% TimberOperationsandReforestation

6% OilPalmOperations

RM754 MILLION


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EXPORT VOLUME IN %

1% • Charcoal 10% • SawnTimber 23% • Particleboard 27% • Plywood39% • Logs

FYE 2016

EXPORT VALUE IN %


FYE 2016

FYE 2015

EXPORT VALUE IN %


EXPORT VOLUME IN %


FYE 2015

Canada

USA

New Zealand

Indonesia

Australia

NorthenMariana

IslandPhilippines

Taiwan

JapanChina

Singapore

South Africa

South Korea

Thailand

Dubai

India

BangladeshHongKong

OmanSri Lanka

Maldives

Bharain

Yemen

Saudi Arabia

Turkey

Greece

Vietnam

EXPORT MARKET HIGHLIGHTS

France


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CORPORATE INFORMATION

BOARD OF DIRECTORS

Mr. Tiong Kiong KingChairman,Non-IndependentNon-ExecutiveDirector

YBhg. Dato’ Tiong IngManagingDirector

Madam Ngu Ying PingSeniorIndependentDirector

Mr. Tiong Ing MingIndependentDirector

Mr. Poh Kee EngIndependentDirector

AUDIT COMMITTEENguYingPing(Chairman)TiongIngMingPohKeeEng

NOMINATION COMMITTEENguYingPing(Chairman)TiongKiongKingTiongIngMingPohKeeEng

REMUNERATION COMMITTEENguYingPing(Chairman)TiongKiongKingTiongIngMingPohKeeEng

COMPANY SECRETARIESLingChiehMin(MIA18531)VoonJanMoi(MAICSA7021367)

REGISTERED OFFICENo.66-78,PusatSuriaPermata,JalanUpperLanangC.D.T.123,96000Sibu,SarawakTel :084-211555Fax :084-211545E-mail :[email protected] :www.suburtiasa.com.my

SHARE REGISTRARSymphonyShareRegistrarsSdn.Bhd.Level6,SymphonyHousePusatDaganganDana1JalanPJU1A/4647301PetalingJayaSelangorDarulEhsanTel : 03-78418000HelpdeskTelNo : 03-78490777Fax :03-78418151/03-78418152

PRINCIPAL BANKERSUnitedOverseasBank(Malaysia)BerhadCIMBBankBerhadRHBBankBerhadHongLeongBankBerhadAmbank(M)BerhadBankofChina(Malaysia)BerhadAffinBankBerhad

AUDITORSCroweHorwath(AF:1018)CharteredAccountants1st FloorNo. 1, Lorong Pahlawan 7A2Jalan Pahlawan96000Sibu,SarawakTel :084-211777Fax :084-216622 STOCK EXCHANGE LISTINGMainMarketofBursaMalaysiaSecuritiesBerhadStockName : SUBURStockCode : 6904Sector : IndustrialProduct


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PROFILE OF DIRECTORS

MR. TIONG KIONG KINGChairmanNon-Independent Non-Executive DirectorAge 69, Malaysian, Male

Mr.TiongKiongKingwasappointedtotheBoardofDirectors(“Board”)ofSuburTiasaHoldingsBerhadon21June1997andwas subsequently appointed as Chairman of the Board on19March2013.He isalsoamemberof theNominationandRemunerationCommitteesoftheCompany.

Mr. Tiong Kiong King hasmore than 45 years ofmanagerialexperienceinthetimberindustryinvariouscapacities.Presently,Mr. Tiong also holds key posts in several non-governmentorganisations.Amongthem,heistheLifeHonoraryPresidentfor SibuChineseChamber ofCommerce and Industry, VicePresident ofWorld Federation of FuzhouAssociation Limited,Life Honorary President of Persekutuan Persatuan-PersatuanFoochow Sarawak, Honorary Chairman of the World ZhangClan Association Limited and Chairman of Persatuan KlanZhang Negeri Sarawak. He is also the Vice Chairman of apubliclistedcompany,RimbunanSawitBerhad.

YBHG. DATO’ TIONG INGManaging DirectorAge 59, Malaysian, Female

YBhg.Dato’TiongIngwasfirstappointedtotheBoardofSuburTiasaHoldingsBerhadon25July2001andwassubsequentlyappointed as the Managing Director on 1 October 2003.EducatedinCanadainBachelorofArts,majoring inBusinessAdministration,YBhg.Dato’ Tiong Ing isa licensedcompanysecretaryandhasmorethan35yearshandsonexperience,in-depthknowledgeandextensivemarketnetworkinthetimberindustry.

On 19 July 2007, YBhg. Dato’ Tiong Ing was conferred withDarjah Sultan Ahmad Shah Pahang (D.S.A.P) which carriesthetitle“Dato’”.YBhg.Dato’TiongIngwasadirectorofEONBankBerhadbetween2009and2011and saton theBank’sBoardGroupCreditCommittee.BeingpartofSarawakTimberAssociationwhichhasmorethan400membersfromcompaniesinvolvedintimber,timberrelatedindustriesandtrades,YBhg.Dato’ Tiong Ing has been actively involved as a Councilmemberforlogmarketingsince2008.SheisalsoappointedasamemberofUniversityCollegeTechnologySarawakIndustryAdvisoryCouncilsinceApril2016.


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PROFILE OF DIRECTORS(cont’d)

MADAM NGU YING PINGSenior Independent DirectorAge 56, Malaysian, Female

MadamNguYingPingjoinedtheBoardofSuburTiasaHoldingsBerhad on 29 June 2009. She was subsequently appointedas the Chairperson of Audit, Remuneration and NominationCommitteesoftheCompanyon19March2013.

MadamNguYingPinggraduatedwithBachelorofEconomics(Major in Accounting) from Monash University, Melbourne,Australia. She is a member of the Malaysian Institute ofAccountants, Fellow Member of the Malaysian Institute ofTaxation,FellowMemberoftheCPAsAustraliaandAffiliateofMalaysianInstituteofCharteredSecretariesandAdministrators.Shedoesnotholddirectorshipinanyotherpubliccompany.

MR. TIONG ING MINGIndependent DirectorAge 59, Malaysian, Male

Mr. Tiong IngMing joined the Board of Subur Tiasa HoldingsBerhadon19March2013andhe isamemberof theAudit,NominationandRemunerationCommitteesoftheCompany.

Mr. Tiong Ing Ming graduated with a Bachelor of Building(Hons) from University of Melbourne, Australia in 1982 andbeganhiscareer inaconsultingquantity surveyingpracticesince1994.HeisaregisteredquantitysurveyoroftheBoardofQuantitySurveyors,MalaysiaandamemberoftheInstitutionofSurveyorsMalaysia.HealsositsontheBoardofapubliclistedcompany,RimbunanSawitBerhad.


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PROFILE OF DIRECTORS(cont’d)

MR. POH KEE ENGIndependent DirectorAge 67, Malaysian, Male

Mr. Poh Kee Eng joined the Board of Subur Tiasa HoldingsBerhadon14September2015andheisamemberoftheAudit,RemunerationandNominationCommitteesoftheCompany.

Mr.PohKeeEnggraduatedwithaBachelorofScience(Hons)andDiploma in Education fromUniversity ofMalaya in 1975and began his career as a teacher, and subsequently as aSchool InspectorofSarawakEducationDepartmentKuchingandthenaSchoolPrincipalfrom1976to2005.HejoinedSuburTiasaHoldingsBerhadasaHumanResourcesManagerin2005.HethenservedasSeniorManager,AdministrationandHumanResourcesDepartmentandwasalso inchargeofCorporateSocial Responsibility of STHGroup from 2007 to 2014. Duringhis tenure with STH, he had extensive exposure to logging,manufacturing and oil palm operations. He also has vastexperience in management and training. He does not hold directorshipinanyotherpubliccompany.

OTHER INFORMATION OF DIRECTORS:

(i) FamilyRelationship NoneoftheDirectorshaveanyfamilyrelationshipwitheachotherorthemajorshareholdersofthe

Company,exceptasdisclosedbelow:

• Mr.TiongKiongKingisabrotherofYBhg.TanSriDatukSirDiongHiewKing@TiongHiewKing,amajorshareholderoftheCompanyandanuncletoYBhg.Dato’TiongIng,whoistheManagingDirectoroftheCompany.

• YBhg.Dato’TiongIngisthedaughterofYBhg.TanSriDatukSirDiongHiewKing@TiongHiewKing,amajorshareholderoftheCompanyandaniecetoMr.TiongKiongKingwhoisalsoaDirectoroftheCompany.

(ii) ConflictofInterest Noneof theDirectors hasbeen involved in situation thatwill createaconflict of interestwith the

Company.

(iii) ListofConvictionsforOffences NoneoftheDirectorshasbeenconvictedofanyoffence,otherthantrafficoffenceswithinthepast

five(5)yearsandtherewasnopublicsanctionorpenaltyimposedbytherelevantregulatorybodiesduringthefinancialyearunderreview.

(iv) AttendanceofDirectorsatBoardMeetings There were four (4) BoardMeetings held during the financial year ended 31 July 2016. Details of

attendance of each Director at BoardMeetings are as stipulated in the Corporate GovernanceStatementsetoutonpage25ofthisannualreport.

(v) SecuritiesholdingsintheCompanyanditssubsidiaries TheDirectors’shareholdingsasat31October2016areasdisclosedonpage129ofthisannualreport.


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PROFILE OF KEY SENIOR MANAGEMENT

MR. TENG KING HUATChief Operating OfficerAge 53, Malaysian, Male

Mr.TengKingHuatwasappointedasChiefOperatingOfficerofSuburTiasaHoldingsBerhadon1September2015.

Mr.TengKingHuatgraduatedwithaBachelorofEngineering(Chemical)degree fromUniversityofAdelaide,Australia.Hestarted his career as Head of Quality Control in a plywoodcompanyofRimbunanHijauGroup.Hespentthree(3)yearswithatradingcompanyasHeadofMarketing(Chemical)tosetupnewchemicalbusiness.Hesubsequentlyjoinedatimberbasedgroupas Engineer beforebeingpromoted to ProjectManager. In 1997, he rejoined Rimbunan Hijau Group asProductionManager inachemicalmanufacturingcompanyand was later promoted to Assistant General Manager and AlternateDirector.

Prior to his appointment asChiefOperatingOfficer of SuburTiasaHoldingsBerhad,hehadalsoservedasPersonalAssistanttoManagingDirector,Dato’ Tiong Ing since 2008.During histenure with Subur Tiasa Holdings Berhad, he has acquiredextensive exposure in logging, timber based manufacturingandoilpalmoperations.Hehasmorethan15yearsofseniormanagerialexperienceindifferentbusinessindustries.

Hedoes not holddirectorship in anypublic companies andlisted issuers. He has not been involved in situation that willcreate a conflict of interest with the Company and has noconvictionforoffenceswithinthepastfive(5)years.Therewasnopublicsanctionorpenaltyimposedonhimbytherelevantregulatorybodiesduringthefinancialyearunderreview.


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CORPORATE STRUCTUREAs at 31 October 2016

TIMBER OPERATIONS AND REFORESTATION

100% SarajuHoldingSdn.Bhd.(179762-K) 100% JPHLoggingSdn.Bhd.(809224-M)100% SuburTiasaForestrySdn.Bhd.(323421-T)100% SarawakPlywood(M)Sdn.Bhd.(012934-U) 100% SuburTiasaPlywoodSdn.Bhd.(167681-D)100% SuburTiasaParticleboardSdn.Bhd.(198523-K) 100% BorneoLumberIndustriesSdn.Bhd.(34515-V) 100% GraceMillionSdn.Bhd.(624862-D) 100% ExcelleTimberSdn.Bhd.(761744-T) 100% TrimogreenSdn.Bhd.(190362-D) 100% RHTimberProcessingIndustriesSdn.Bhd.(48217-K) 100% DiamondBiowoodSdn.Bhd.(750284-A)100% AAPlywoodSdn.Bhd.(752393-M)100% SemarakVeneer&PlywoodSdn.Bhd.(230578-K)100% HometRayaSdn.Bhd.(189955-D)

OIL PALM OPERATIONS

100% PalmlynSdn.Bhd.(614569-U)100% InfrapalmSdn.Bhd.(769262-T)100% BlessingsPalmSdn.Bhd.(776528-A)100% TiasaPalmSdn.Bhd.(809230-X) 100% VictoryRoundSdn.Bhd.(751569-X) 60% VictoryPelitaKabahSdn.Bhd.(1015888-K) 75% HahnFertSdn.Bhd.(1185250-K)

OTHERS

100% T.Q.OrientalSdn.Bhd.(257848-D) 100% SupremeStandardDevelopmentSdn.Bhd.(717556-V) 100% AlliedAsiaticSdn.Bhd.(734184-M) 100% JoyfulRealtySdn.Bhd.(770831-M) 100% JPHEnterpriseSdn.Bhd.(771097-V) 100% BlessingsRealtySdn.Bhd.(775270-M) 100% TiasaCergasSdn.Bhd.(935519-H) 100% TiasaMesraSdn.Bhd.(938319-P)100% MamoSdn.Bhd.(1012769-P) 100% MomaspaceSdn.Bhd.(formerlyknownasMomamizuSdn.Bhd.)(1014468-D)100% HoneybrixSdn.Bhd.(formerlyknownasOnfireCharcoalSdn.Bhd.)(1019826-W)100% MomaworldSdn.Bhd.(1032328-H)100% MomawaterSdn.Bhd.(1033245-V) 100% MOMAMarketingPte.Ltd.(201623094H)100% MerriSdn.Bhd.(1057611-U)100% MerriMeeSdn.Bhd.(1067347-D)100% MerriMarketingSdn.Bhd.(1067349-P) 100% UnitedSuperlandSdn.Bhd.(1090607-K)100% SuburPropertiesSdn.Bhd.(1151173-H) 100% TiasaHeightsSdn.Bhd.(1151223-H) 100% PrestigeSuperlandSdn.Bhd.(1151205-M)100% SuburTiasaR&DSdn.Bhd.(1157521-A)100% SuburGlobalPte.Ltd.(201539306M)100% LXPhotonicsSdn.Bhd.(1167330-X)

SUBUR TIASA HOLDINGS BERHAD(341792-W)

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SUBURTIASAHOLDINGSBERHAD(341792-W)

CHAIRMAN’S STATEMENT

Mr. Tiong Kiong King Chairman

Dear fellow shareholders,

On behalf of the Board of Directors, it is mypleasure topresent theAnnualReportand theAudited Financial Statements of Subur TiasaHoldings Berhad (“the Company”) and itssubsidiaries (“theGroup”) for the financial yearended31July2016.

FINANCIAL PERFORMANCE

The slowerglobaleconomicgrowth,underpinnedbyamanagedslowdown inChina’seconomicexpansioncoupledwithdeterioratingmarketoutlookinemergingmarketsanddevelopingeconomies,globalcommoditiesdemandinthedoldrumsparticularlyamarkeddropinoilprices,volatilityinthefinancialmarketsandsofteningconsumersentiments,haspoisedachallengingoperatinglandscapefortheGroupforthefinancialyear2016.TheGroupregisteredalowerrevenueofRM554.6millionforthefinancialyearended31July2016ascomparedtoRM754.0millioninyear2015.ThelowerrevenuewasmainlyduetothelowercontributionsfromtimberdivisionduetoincreasinglychallengingbusinessenvironmentinMalaysiaaswellaslowerexportsalesvolumeoflogs.TheGroupreportedlossaftertaxofRM38.3millionascomparedtoprofitaftertaxofRM2.6millionintheprecedingyear.

DIVIDEND

TheBoardofDirectorsdidnotrecommendfinaldividendtobepaidinrespectofthefinancialyearended31July2016.

OPERATIONS REVIEW

Timber

Timbersegmentwhichconsistsoftheupstreamlogging,reforestationanddownstreammanufacturingoftimberproducts continued tobe the keycontributor, accountable for 91%of theGroup’s revenue. TheGrouphasestablishedasanintegratedtimberplayerwheretheupstreamloggingandreforestationsupplythesustainablesource of raw materials to the downstream manufacturing. Wood wastes from downstream activities areprocessed intovalue-addedproductsofparticleboardandcharcoal.Biomass residuesare furtherprocessedandthenconvertedintoelectricityenergythroughtheoperationofcogenerationpowerplant.Theintegratedapproachmaximizesreturnsandminimizeswastageofnaturalresources.

Logging and Reforestation

Theloggingandreforestationsegmentcontributed32%oftheGroup’srevenue.Indiacontinuedtoremainasourmainexportmarket,followedbyVietnam,TaiwanandJapan.ThestrongexportsellingpriceforlogswasbackedbystrengtheningofUSDollaragainstRinggitMalaysia,thefirmmarketdemandandthetightsupplyoflogs.


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CHAIRMAN’S STATEMENT(cont’d)

Onproductionside,theunfavorableweatherconditionshashamperedthetransportationoflogsforexportsandprocessingmills.Theimplementationofrevisedloggingoperatingproceduretoprepareforforestcertificationhasimpactedlogsproduction.Nevertheless,theGroupoptimizedtheallocationoflogsfordownstreamprocessingtomaximizethelogsutilization.

Wehaveadoptedloggingproceduresforforestcertificationandstrengthenedimplementationofsustainableforestmanagementpractices.TheGrouphascarriedoutin-housetrainingstoenhanceeffectiveandefficientforest management practices. We envisage this would benefit the Group in the long run and ensure thesustainabilityofourforestresources.

TheGroupremainscommittedonreforestation.Wecontinuetomonitorthegrowthperformanceoftheplantedtreesandremainsteadfasttofurtherinvestinresearchanddevelopmenttogearupreforestationoperationinthepreparationforforestmanagementcertificationtoensureforestsustainability,environmentcareandcontinuityofrawmaterialsupplyfordownstream.

Plywood

Plywoodcontinuedtobethekeycontributortotimbersegment’srevenue,supportedbystrongUSDollaragainstRinggitMalaysiawhichhassustainedtheaverageexportsellingprice. TheGroup’sexportmarkets remainedpredominantly Taiwan, South Korea, Middle East and Philippines, with increasing market shares from someemergingmarkets.BackedwithJAScertification,CaliforniaAirResourcesBoard(CARB)Certification,CEMarkingSystemCertification,WoodPackagingTreatmentCertificationandISO9001:2008,weconsistentlydeliversuperiorqualityplywoodproductstoourcustomerswithwiderrangeofvalue-addedproducts.

We continue to monitor closely the scale of production of plywood in our efforts to optimize the plywoodoperations. We implement costs savingmeasures, raise productivity, enhance product quality and improverecoveryrate.Toincreasecompetitivenessandmarketshare,wecontinuouslydevelopproductdifferentiation,expand market share in niche market and explore new markets.

Particleboard

Particleboardoperationaccounted for 11%of the total revenueof theGroupandcontinued to contributeprofittotheGroup.MajorexportmarketsremainemergingeconomiesinSouthEastAsia.Wearededicatedtoproducesuperiorqualityproducts.OurSuburTiasaBrandofparticleboardiswellrecognizedacrosstheglobe.ThequalityisbackedbycertificationfromtheJapanMinistryCertification(JISF4star),theCARBandISO9001:2008Certification.


12


CORPORATE DEVELOPMENT

InformationandcommunicationTechnology(“ICT”)hasbeenavitalenablertoourbusinessactivitiesandthediverseendeavorsoftheGroupinFY2016.AlongsidetheGroup’sbusinessdiversificationstrategy,wecontinuetoenhanceICTresourcesandnetwork.Aseriesofnotableinitiativeshavebeenlaunchedsuchastheestablishmentof its online presence through SEO-enabled andmobile-friendly websites, e-commerce platform and socialmedia,whichhavebecomeincreasinglycrucialtobusinessesintoday’sconnectedworld.

TheGrouphasalwaysvalueditshumancapitalandbelievedthattheyarethecatalystinpropellingtheGroupin its transformational journeytowardssuccess.TheGroupcontinuesto invest inuplifting itshumancapitalbyengagingvarious training initiativesviaabalancedmixofon-the-jobexperience, informal learningexposureandformal learning.SuburTiasawill leverageon its stronghome-grown innovativecapabilities toenabletherefinementandexecutionoftheGroup’sstrategiestowardsacommongoal.

GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY

TheGroupiscommittedtostrengtheninggoodcorporategovernanceandcorporatesocialresponsibilityinthebusinessmodels.Wearealwaysmindfulofconductingbusinessinanethical,sustainableandsociallyresponsiblemanner,concurrentwithsupportingthecommunitiesbyupholdingourselvesasagoodcorporatecitizen.

Oil Palm Plantation

TheoilpalmplantationsegmentemergedasthekeyprofitcontributortotheGroupbyrecordingprofitbeforetaxofRM9.4millioninFY2016fromRM0.2million.ThesignificantimprovementwasbackedbytheincreaseinCrudePalmOil(“CPO”)priceby5%fromaverageofRM2,200permetricton(“MT”)inFY2015toaverageofRM2,319perMT.

TheGroup’splantedareaincreasedby780hectarestoatotalof11,080hectares,spreadingoveratotallandbankof28,743hectaresasat31July2016.DuringFY2016,freshfruitbunch(“FFB”)productionincreasedby9%to119,686MTfrom109,519MTinpreviousyear,inlinewithmorecropsreachingtheirprimeage.TheprogressiveincreaseinplantedareasandmaturityprofileofthecropswillfurtherboostitsshareofcontributiontotheGroupwhentheCPOpricestrendupwards.

WeendeavortoembracegoodagriculturalpracticeinestatesandimproveonestatemanagementsystemtoenhancetheFFByieldperhectareandfruitqualitywithhigheroilextractionrate.ToensurecontinuedgrowthandsustainabilityoftheGroup’splantationactivity,westrivetoimprovetheoperationalefficiencybyimplementingmechanizationprogramespeciallyontheinfieldFFBevacuationinordertooptimizethedeploymentoflabor.

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13


PROSPECTS

AccordingtoIMFinOctober2016,globalgrowthisprojectedtoslowto3.1percentin2016beforerecoveringto3.4percent in 2017as subduedglobaldemandpersists.Growthprospect forglobaleconomy is still hazy,boggeddownbyafewlingeringunresolvedgeo-politic issues,amongothers,theunclearultimate impactofBrexit, loweroilprices, thepersistent slowdown inadvancedeconomiesandcontinuedChina’s rebalancing.Duetoprojectedweakglobaldemandforoilandmanufacturedexports,globalfinancialinstitutionpredictedMalaysia’sgrossdomesticproductwouldslowto4.2%thisyearfrom5%in2015.Nevertheless,theeconomyissettoreboundin2017andacceleratein2018ascommoditypricesarelikelytorecoverandthereshouldbeaboostintheexportofmanufacturedproducts.

Timberpricesareexpectedtosustain inanticipationoftightsupplyof logsandfirmdemandfromthetimberconsumingcountries. TheCPOprice isexpected to remain stable inviewofhigherpriceof soybeanoilandincreaseindemandfromIndia.WeexpecttoseeanupwardtrendintheprofitcontributionfromtheoilpalmsegmentwithanincreaseintheFFBproductionfrommorepalmsatprimeageprofileandincreasingyield.

TheGroupwill focusonachieving sustainableprofitabilityand improving thecorebusinessmodels throughimplementingneweffectivestrategiesandrestructuringplanwhilediversifyingintootherbusinesses.TheGroupiscommitted to transforming itsoperations strategically,consolidatingall itsavailable resources foroptimalutilization,implementingcostcompetitivenessprogrammeandstrengtheningproductsbrandingtoensuretheGroupstaysresilientunderadverseeconomicconditions.

APPRECIATION

OnbehalfoftheBoardofDirectors,Iwouldliketoexpressmyheartfeltgratitudeandappreciationtoourvaluedcustomers,suppliers,financialinstitutions,businessassociates,relevantgovernmentauthorities,variousregulatorybodiesandshareholdersforyourcontinuoussupportandconfidenceinourstriveduringthesedifficulttimes.

TheBoardwouldliketopaytributetothelateTemenggongDatukKennethKanyananakTemenggongKohwhodemisedon1March2016.TheBoardputonrecorditsappreciationforhiscontributionduringthepast19yearssincethelistingofSuburTiasaontheMainMarketofBursaMalaysiaSecuritiesBerhad.

IwouldalsoliketoconveymygratitudetomyfellowBoardmembersfortheirinvaluablesupportanddedication.IamalsoverygratefultotheresilientandresourcefulManagingDirector,YBhg.Dato’TiongIng,themanagementteamandtheemployeesoftheGroupfortheircommendableperseveranceandconcertedefforts.TheGroupvaluesandlooksforwardtothiscontinuedsupportasweundertakenewchallengesandopportunitiesahead.

Tiong Kiong KingChairman


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CORPORATE SOCIAL RESPONSIBILITY

Subur Tiasa stronglyacknowledgesCorporate Social Responsibility asa long term strategic initiative towardssustainableandinnovativebusinessthatcreatesvaluetoourstakeholdersandcommunityatlarge.Ourongoingcorporate responsibility journey includes a number of key commitments that focus on the following areas:Workplace,Community,MarketplaceandEnvironment.

Workplace

Acknowledgingemployeesasourmostvaluableassets,weactivelypromotework-lifebalanceasweholdtothebelief-happyemployeesmakeasuccessfulbusiness.Withvariousannualfestivecelebrationsandgatherings,weareabletostrengthencamaraderieandsenseofbelongingamongeverymemberoftheSuburfamily.

Christmas Gathering

SuburNight2015

EasterEggsDistribution

ChineseNewYearCelebration

ChineseNewYearCelebration


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CORPORATE SOCIAL RESPONSIBILITY(cont’d)

Discipline•Unity•Togetherness-Thevaluesweuphold increatingavibrantworkingenvironment.

BadmintonCompetition

Community

Bythenatureofourbusiness,SuburTiasahascomeintocontactwiththelivesofmanyinourcommunity.Withthegoalofmakingsignificant impact inthe livesofthecommunities inwhichweoperate in,weareactivelyengagedinamyriadofhumanitarianactivitiestoofferourhelpinghands.

AgapeFoodFair(FundRaising)


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Our support for localcharitiessuchasSibuKidneyFoundation, Sibu AgapeAssociation and manyothers extend beyond justfinancial contribution, asbringing joy to themwithacaring heart is a priceless gift andendlessjourney.

DonationtoTanjungPenasu(FireVictims)

DonationtoRumahCharlesIgat(FireVictim)

VisitOldFolksHomeBlooddonation


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Wearecommitted toput inplace sustainablepractices thatminimizes itsenvironmental footprint,managesnatural resourcesandwaste to reduce theenvironmental impact.Alongsidewith theefforts topreserve theenvironmentwithsustainablepractices,wealsoengageinvariousactivitiestoreducewastageandcultivatingthe“GoGreen”mindsetasperourannualrecyclingprojectgoals.Ourcontinuingcommitmenttowardsforestsustainabilityisreflectedinournextjourneytowardsachievingforestmanagementcertification.

Webelievethatcorporateresponsibilityeffortextendsbeyondphilosophicalandphilanthropiccommitmentandittakescommitmentfromalltoleaveasignificantimpactonourcommunity.Ourcorporatesocialresponsibilityiscontinuousthroughcollaborativeeffortwhicharegearedtowardsthegoalofhavingapositive impactonsocietywhileachievingsuccessoftheCompany.

Marketplace

Stronggovernanceandethicalconductareessentialtothesuccessofourbusiness;helpingusindevelopinga sustainable, resilientbusinessandbuildingcredibilitywithouremployees,customersand stakeholders. Weworktodevelopastrongcultureoftrustandinternalgovernance.Theseendeavoursarealignedwithourstrictadherencetostatutoryrequirementsaswellasinternalregulationsandstandards.Customersareatheartofallwedo;welistentoourcustomersandmeettheirchangingneedsbyofferinghighqualityproductsandservicesconstantly.Wetoo,havefoundourwaysintotheglobalmarket,asourresearchanddevelopmenteffortiswellunderwaytoanswerthecallfordiversification.

Environment


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SUBUR TIASA PLYWOOD SDN. BHD.• JapaneseAgriculturalStandards(JAS)Certification• CaliforniaAirResourcesBoard(CARB)Certification• ISO9001:2008Certification

SUBUR TIASA PARTICLEBOARD SDN. BHD.• JapanMinistryCertification• CaliforniaAirResourcesBoard(CARB)Certification• ISO9001:2008Certification

AWARDS & RECOGNITIONS

OurCommitmentasapreferredreliablesupplierofpremiumwoodbasedproduct,wellrecognisedregionallywithmanyaccoladeswonovertheyearsforourqualityproducts.

SUBUR TIASA HOLDINGS BERHAD • DiplomaBestEnterpriseAward2012• CenturyInternationalDiamondQualityEraAward2012• 2ndMalaysiaIndependenceAward2010• InternationalDiamondStarForQualityAward(Geneva2010)• WorldQualityCommitment(WQC)InternationalGoldStarForQualityAward(Paris2007)• BusinessSummitAward2007

SUBUR TIASA PLYWOOD SDN. BHD.• QualitySummitPlatinumAwardForExcellence&BusinessPrestige(NewYork2009)• WorldQualityCommitment(WQC)InternationalGoldStarForQualityAward(Paris2008)• PlatinumTechnologyAwardForQuality&BestTradeName(Rome2008)• CelebrityBrandAward2011CelebrityBrandCenter@TheNomadPavilion

SUBUR TIASA PARTICLEBOARD SDN. BHD.• TheSarawakChiefMinister’sEnvironmentalAward2011/2012• ProductExcellenceAwardInIndustryExcellenceAwards2009• TheMajesticFiveContinentsAwardForQuality&Excellence(GENEVA2008)• DiamondEyeAward2007ForQualityCommitment&Excellence• TheTopQualityCustomerSatisfactionAptitudeSealForHighQualityPerformance&Best

CustomerSatisfaction2007• 32ndInternationalAwardForTheBestTradeName2007(NewMillenniumAward)

AWARDS

CONTENTS company, Rimbunan Sawit Berhad. SUBUR TIASA HOLDINGS BERHAD (341792-W) 7: PROFILE OF...

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Transcript of CONTENTS company, Rimbunan Sawit Berhad. SUBUR TIASA HOLDINGS BERHAD (341792-W) 7: PROFILE OF...