Palm Products

Our Business

Driving Sustainable Growth Through Responsible Plantation

TSH is predominantly an upstream player in the plantation business with landbanks strategically located in Kalimantan, Sumatera, and East Malaysia. Our plantation footprint encompasses over 51,000 hectares of oil palm planted areas in Malaysia and Indonesia, including management of more than 12,000 hectares under our associate company, Innoprise Plantations Berhad. We are committed to sustainable plantation practices, ensuring that best management practices are applied across our operations. In addition to cultivating oil palm, we operate mills that process fresh fruit bunches into crude palm oil and palm kernel. TSH has formed a joint venture with Wilmar International Ltd. to operate a palm oil refinery, along with a fractionation and palm kernel crushing plant, in Sabah.

Our Presence

Estates

Mills

Refinery

%

CPO & PK traceable to supplying palm oil mills

%

FFB traceable to plantation

(for Indonesian operations)
4 TSH Palm Oil Mills in Indonesia process Fresh Fruit Bunches (FFB) sourced from our own plantations as weII as from our scheme smallholders (Plasma). All FFB is fully traceable.

%

FFB traceable to plantation

(for Malaysian operations)
At least 85% of the Fresh Fruit Bunches (FFB) processed at TSH Palm Oil Mill in Malaysia sourced from third-party suppliers. Additionally, all FFB sourced through TSH’s second-tier collection centres is fully traceable.

Palm Products Value Chain

At TSH, we are committed to producing high-quality and sustainable palm products by integrating best management practices and highly efficient processes throughout our value chain. From cultivating fresh fruit bunches (FFB) to processing and delivering premium palm oil products, every step of our operations is guided by sustainability, innovation, and excellence.

Our dedication to sustainability ensures that our products meet the highest standards while minimizing environmental impact. By adhering to strict industry certifications and implementing innovative practices, we prioritize the long-term health of our ecosystems and communities.

The value chain encompasses:

  • Cultivation: Employing sustainable plantation methods to produce quality FFB.
  • Processing: Utilizing advanced milling and refining techniques to ensure efficient extraction of crude palm oil and palm kernel.
  • Renewable Energy: Harnessing biomass and biogas from palm oil mill byproducts to generate sustainable energy, reducing greenhouse gas emissions and contributing to climate action.
  • Refinement: Producing premium refined products tailored to diverse markets.

Through collaboration, innovation, and a steadfast commitment to sustainability, we create value for our stakeholders and contribute to a greener future

Oil Palm Estate

Nursery & Planting

Upkeep

Harvesting

Palm Oil Mill

Oil Extraction

Kernel Extraction

Downstream Business

Refinery

Bio-Integration Complex

Best Management Practices (BMP)

At TSH Resources Berhad, we are committed to implementing Best Management Practices (BMP) that prioritize sustainability and environmental stewardship in all aspects of our plantation operations. Our BMP focuses on ensuring responsible management of natural resources while promoting innovation and community involvement.

Soil Management

Effective soil management in oil palm plantations is crucial for sustaining productivity and environmental stewardship. Key practices include erosion control through terracing, contour planting, and the use of cover crops like legumes to stabilize soil and reduce runoff. Mulching with palm fronds or empty fruit bunches (EFB) helps conserve soil moisture, suppress weeds, and enrich organic matter. Efficient drainage systems and rainwater harvesting mitigate waterlogging and provide irrigation during dry spells. Regular soil testing and balanced fertilization further enhance soil fertility and structure, promoting healthy crop growth.

Incorporating sustainable practices such as buffer zones near waterways, reforestation of degraded areas, and integrated pest and weed management supports biodiversity and reduces reliance on chemical inputs. By enhancing soil biodiversity and maintaining ecosystem health, these approaches enable plantations to achieve long-term productivity while safeguarding the environment.

Water Management & Conservation

We recognize water as a vital resource essential to both our operations and the surrounding ecosystems. Our water conservation initiatives are designed to ensure responsible, efficient use of water resources, contributing to sustainable agricultural practices and supporting local communities.

Our approach includes a variety of innovative methods aimed at maximizing water efficiency:

Rainwater Harvesting and Water Conservation in Plantation Blocks

To sustain soil moisture, we implement rainwater harvesting systems and strategically place silt pits throughout our plantation blocks. These systems capture and store water, reducing reliance on external water sources and supporting plant health during dry periods.

Community Drinking Water Facilities

We provide safe, accessible drinking water facilities, ensuring that essential resources are available to workers and local communities.

Rivers and Water Quality Monitoring

To safeguard our natural waterways, we regularly monitor river quality, helping to protect these critical ecosystems from contamination and maintain water purity for downstream communities.

Water Stewardship and Resilience

TSH recognises water as a critical natural resource that underpins the resilience of its plantation, milling and manufacturing operations, p articularly in the context of climate variability and changing weather patterns. The Group adopts a responsible water management approach focused on efficient water use, protection of water quality and compliance with regulatory and certification requirements. Key practices include monitoring water consumption, managing effluent and wastewater discharges, and implementing measures to reduce water intensity and minimise environmental impact. Where appropriate, treated effluent and rainwater are reused to optimise resource efficiency. Water-related risks, including availability and climate-related impacts, are integrated into the Group’s climate risk assessments and operational planning to support business continuity, environmental stewardship and long-term sustainability.

Water Conservation in Plantation Blocks

In our ongoing efforts to maintain soil moisture, we employ natural techniques such as using soil bags and planting nephrolepis, a fern that naturally helps retain moisture and reduces evaporation. Additionally, we strategically place silt pits throughout our plantation blocks to capture and store water efficiently, ensuring plant health during dry periods while promoting sustainable water conservation.
Through these efforts, we not only enhance our operations but also contribute positively to the health and sustainability of the ecosystems and communities around us.

Mechanization for Operational Efficiency

To further enhance efficiency across our plantations, we utilize mechanization, which improves productivity and reduces labor intensity:

  • FFB Grabbers: These machines simplify the collection of fresh fruit bunches (FFB), reducing manual labor and optimizing harvesting time.
  • Mechanical Buffalos: These rugged, all-terrain vehicles facilitate transportation within the plantation, improving logistics and enabling smoother operations.
  • Assisted Spraying and Fertilizer Application: Mechanized sprayers and applicators enable precise, efficient distribution, minimizing resource use and ensuring consistent coverage.
  • Drones: We employ drones to monitor crop health, map fields, and assess growth patterns, allowing for data-driven decision-making that improves overall yield and resource management.

Integrated Pest Management Practices

We are committed to environmentally responsible plantation management that minimizes dependency on chemical pesticides. By fostering biodiversity and implementing sustainable pest control measures, we contribute to the health of our ecosystems and the well-being of our workers and communities.

Planting Beneficial Plants

To naturally control pests and promote ecosystem balance, we plant beneficial species such as Antigonon and Turnera. These plants attract natural predators of harmful pests, reducing the need for chemical interventions and supporting soil health.

Barn Owls as Natural Pest Control

Barn owls play a key role in our Integrated Pest Management strategy. As natural predators of rodents, they help control populations and maintain ecological balance, allowing us to reduce pesticide use.

Census Activities for Targeted Pest Control

We conduct regular census activities to monitor pest populations, enabling us to make informed decisions on pest management. This proactive approach prevents the need for prophylactic (preventative) pesticide applications, reducing environmental impact.

Safe Chemicals and Pesticide Use

We use chemicals and pesticides judiciously, adhering strictly to global safety standards, including compliance with WHO Class 1a/1b bans and all relevant international conventions. By combining targeted chemical use with environmentally friendly practices, we minimize risks while effectively controlling pests, ensuring a safer workplace and a healthier ecosystem for the communities we serve.

Best Practices in Sustainable Palm Oil Milling

At TSH Resources Berhad, we remain committed to producing high quality palm products sustainably, contributing to a greener future for all. We focus on operational efficiency, environmental responsibility, and high product quality while minimizing our impact on the environment.

Optimized Milling Processes

We employ advanced technologies and sustainable practices to improve our milling operations. This helps us enhance efficiency, reduce our environmental footprint, and consistently deliver high-quality palm oil.
Our approach to milling excellence is reflected in the following key practices:

Raw Material Selection

We ensure optimal oil yield by processing Fresh Fruit Bunches (FFB) at their peak ripeness, ensuring our palm oil meets industry standards.

Advanced Processing Technologies

Our mills utilize cutting-edge equipment for sterilization, threshing, pressing, and clarification, ensuring precision at every step. Continuous upgrades and maintenance ensure that our facilities operate at peak efficiency while adhering to industry-leading standards. We also use auto hydraulic systems for efficient fibre pressing, and digester level control systems that optimize material levels for better oil yield and quality.

Quality Control Systems

We implement rigorous quality control measures throughout the milling process. Regular testing, monitoring, and verification ensure that our products are of the highest quality.

Sustainability Integration and Environmental Stewardship

In addition to maintaining the highest product quality, we prioritize sustainability as a core value in our operations. At TSH Resources Berhad, we adopt a holistic approach to resource management, focusing on minimizing waste, saving water, and utilizing renewable energy efficiently.

  • Waste Management:
    We are committed to minimizing waste generation. Organic wastes like empty bunch fibre (EBF) and palm kernel shell (PKS) are used as biomass, generating renewable energy, reducing our reliance on non-renewable resources and lowers greenhouse gas emissions.
  • Water Management:
    We implement water-saving techniques, including water recycling and treatment, to reduce water consumption and optimize usage throughout the milling process. Our closed-loop water systems help minimize waste and preserve water resources.
  • Energy Management:
    We focus on using renewable energy sources such as:
    • Biogas from palm oil mill effluent (POME) to generate electricity.
    • Biomass from waste products like PKS and EBF to produce energy.

Our holistic approach ensures that our operations align seamlessly with nature, demonstrating our unwavering commitment to sustainability and environmental stewardship. By reducing reliance on non-renewable energy sources, we effectively lower our carbon footprint while minimizing our overall environmental impact.

Employee Expertise

Our skilled and experienced workforce plays a vital role in maintaining product quality. Regular training programs ensure our team stays updated with the latest best practices and innovations in palm oil processing.

Continuous Improvement

We continually evaluate and improve our operations to meet international sustainability standards. By embracing new technologies, we aim to reduce both environmental and social impacts, ensuring the long-term sustainability of the palm oil industry.

Employee Safety and Well-Being

Our commitment to sustainability is further reinforced by adherence to industry-leading certifications, including the Indonesian Sustainable Palm Oil (ISPO) and Malaysian Sustainable Palm Oil (MSPO) standards. Our palm oil mill wastes are ISCC-certified, supporting our commitment to responsible waste management and carbon emission reductions.

In addition, we follow rigorous internal Standard Operating Procedures (SOPs) to maintain operational excellence. By implementing these certifications and guidelines, we ensure that our operations meet both environmental and social expectations, reflecting our dedication to sustainable growth and responsible industry practices.

Community and Employee Involvement

We recognize the essential role of local communities and employees in advancing our sustainability efforts. Through Focus Group Discussions (FGDs), we work closely with local communities to raise awareness about key sustainability issues, including the protection of High Conservation Value (HCV) areas and the prevention of forest fires. Our firefighting teams, which are made up of both trained employees and local community members, are instrumental in mitigating risks and protecting the environment and surrounding populations. Furthermore, we actively encourage our employees to engage in sustainability initiatives, fostering a sense of shared responsibility in efforts such as waste reduction, energy conservation, and participation in our corporate social responsibility programs. This collaborative approach ensures that both local communities and employees are integral to our sustainability journey.

Sustainability Goals

Our sustainability goals align with global priorities, focusing on reducing GHG emissions, protecting biodiversity, and ensuring the social responsibility of our operations. We are dedicated to upholding the rights of our employees and surrounding communities, complying with legal requirements, and securing our social license to operate.

Target No: S6
Last updated: dd/month/yyyy
Achievement:

Zero (0) WHO Class 1a/1b chemicals used within the operations

Target Statement: Comply with WHO Class 1a/1b bans and relevant global conventions

For more info, please refer to Annual Report FY25