Introduction is mainly engaged in oil palm cultivation

Introduction to Company Background:

     We’ve chosen Sarawak Berhad Plantation as
it is a Malaysian-based company. Sarawak Plantation Berhad  (SPB) was engaged in Malaysia on October 28,
1997 as a private limited company, formerly known as Sarawak Plantation Sdn.
Bhd and started its business in the same year. On 1 February 2000, SPB was
converted into a public limited company. SPB was formed as the vehicle company
for the privatization of Sarawak Land Development Board’s (SLDB) assets. The
registered office of the company located at 8th floor, Wisma Naim,
2½ Mile, Rock Road, 93200 Kuching Sarawak whereas business office located at
Lot 1174, Block 9, MCLD Miri Waterfront, Jalan Permaisuri, 98000 Miri, Sarawak,
Malaysia. The mission of the company is to “maximize stakeholders’ values
through sustainable development by actively engaging the best business
practices” while the vision is “to be a fully integrated high performing
enterprise with diversified business”.      

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            The privatization of SLDB’s assets,
including oil palm plantations, milling facilities and related assets was
transferred in 1997 to SPB Group (including SPB and its subsidiaries). With
this privatization, all assets of SLDB are owned and managed by SPB and certain
of its subsidiaries .

            The Group is mainly engaged in oil
palm cultivation and processing into palm oil and palm kernel. Other businesses
include seed production, cattle integration, property investment as well as
provision of laboratory and management. 
SPB is one of the first drivers of the Sarawak oil palm industry.
Presently, the Group owns a total land reserve of 48,086 hectares of which
1,855 hectares is under the Native Customary Rights (NCR) scheme. As at 31
December 2016, the Group owned twenty estates with a total planted area of
34,837 hectares. The Group also owns and operates two palm oil plants with a
total operating capacity of 150 tonnes per hours, located at Niah and Mukah




Common Forms of Business

Plantation Berhad started its business as public limited company since 1
February 2000. As at 31 December 2016, the value of authorized share of the
company is RM500,000,000 of ordinary shares at RM1 per share. Authorised share
represents the total amount of capital with which the company is registered or
the maximum amount of capital that the company can issue. The amount of issued
must not exceed the total authorized share capital. As at 31 December 2016, the
total amount of share which is fully paid and issued are RM280,000. Issued
capital represents the part of the authorized capital which has been issued for
cash or for other consideration. The main shareholders
of company are Cermat Ceria Sdn Bhd
which holds 30.3% of their share, State of Sarawak holds 25.4%, Lembaga Tabung
Haji holds 6.71%, Mohamad Bolhair bin Redual holds 5.47%, Sarawak Foundation
Yayasan Sarawak and Yayasan Budaya Melayu Sarawak hold 4.14% each and lastly
Kiu Kiong Law holds 2.13% of their shares. 

            One of the biggest advantage of
public limited company is better access to share capital. SPB can easily raised
their capital from new or existing shareholder. Besides, Limited liability is
one of the advantage of public limited company. For Sarawak Plantation Berhad,
as a separate legal entity, the company is responsible for its actions and
liabilities. Payables have claims only against the assets of the company, not
against the personal assets of the shareholders. Because owners of a company
are not personally liable for corporate debts, the maximum amount they can lose
is the amount they have invested in shares. To investors, this is one of the
most important advantages of the corporate form, since under the alternative form
of business organisation, owners may be personally liable for business debts.
In addition, continuity of existence also the advantage of public limited
company. Sarawak Plantation Berhad has an indefinite life and continues in
existence if its ownership change, that is, a company has the attribute of
perpetual succession. The transfer of shares from one owner to another has no
effect on the continuity of a company. In contrast, the death, incapacity or
retirement of an owner terminated the businesses of sole proprietorship or
partnership. Moreover, use of professional management also one of the advantage
of of public limited company. Although the shareholders own the Sarawak
Plantation Berhad, they do not manage the daily affairs of the company. Shareholders
elect a board of directors, which has overall responsibility for the business
decisions. The board then hires a president or managing director and other
professional managers to manage the business. In contrast to a partnership, no
mutual agency exists in a company. An individual shareholder does not have the
right to bind the company to a contract unless he or she had been hired as a
director or employee of the company. This separation of management and
ownership permits the company to hire the best managerial talent available.

            Sarawak Plantation Berhad must
prepare annual financial reports for presentation to their members and to the
stock exchange and on which their shares are traded. These annual reports must
be prepared in accordance with approved accounting standards and with the
listing requirements of the stock exchange. Hence meeting these requirements
often can be very costly and time consuming for the company. Separation of
ownership from management also the disadvantage of public limited company. The
use of professional managers was cited earlier as an advantage. In some cases,
however, this separation of ownership from management may prove to be a
disadvantage because managers may sometimes operate companies for their own
benefits rather than for the benefit of the shareholders. Considerable harm may
be done before shareholders become aware of the condition and take action to
change the management. Many legal requirement in the Companies Act have been
established to discourage management from acting in their own interests to the
detriment of shareholders.









There are
few business ethics which is now practicing by Sarawak Plantation Berhad. They
are listed as follows:-


also refers to trustworthy and accountable. They adhere to high moral values
and principles that emphasize transparency in their actions, loyalty and
honesty, and to take full responsibility for their business decisions and


To define
professionalism, it means ethical application of knowledge. SPB emphasize on
ethical conduct in discharging their responsibilities and to ensure the
provision of quality services within and outside the organization.


refers to growing through changes and moving ahead of the times. They encourage
creativity in their business to produce significant organizational
improvements. Besides, they also welcome new ideas and believe in their
business forward-looking.

Excellence and result oriented

and result orientation are always in addition to stakeholder expectations
results. They are results-oriented, setting high performance standards for
themselves. They focus on results and achievements, therefore they enhance
outstanding performance to stakeholders through sustainable development, so as
to establish a socially responsible organization.

Team spirit

spirit refers to respect and sharing between the stakeholders in the company.
They respect each other and recognize the contribution from each and everyone.
They encourage mutual support and caring, collaboration and sharing of
knowledge and experience in order to encourage effective working relationships.


Social Responsibility

SPB also
adopts a proactive approach to social responsibility. SPB believes that a good
corporate social responsibility (CSR) approach is part of successful business.
They are committed to corporate social responsibility as a sustainable approach
that benefits all stakeholders, customers, employees, shareholders, and
communities. SPB’s goal is to uphold the highest standards of environmental and
social responsibility. CSR form part of their corporate culture. Company will
strive to become a socially responsible citizen, as such to achieve the globally
recognized standards of corporate responsibility.

operation and activities of the company are conducted in an environmentally
friendly manner. The main initiatives and practices for plantation activities
include the following:

Plantation Development

involves zero combustion during land clearing and replant activities to ensure
minimal impact to the surrounding environment, zero burning practices also
improved the soil condition. In order to reduce soil erosion, the construction
of high terraces is hilly terrain, establishment of legume cover crops for soil
conservation and build up organic matter. Priority hiring is given to local
people, especially those who are living in the project area is one of the CSR
practice by SPB.


The trimmed
leaves are placed in between the inter-row of the terrace to recycle organic
matter and moisture conservation, usage of compost and fruit bundles as
alternative fertilizer to minimize the need for inorganic fertilizer while
maintaining soil fertility, and treated palm oil mill effluent in nutrient
cycling and moisturizing.

Pest and disease management

minimizes the loss of known of known fungal diseases, such as Ganoderma with a
high standard of field health, practice Integrated Pest Management (IPM) in
order to reduce the use of toxic pesticides by promoting beneficial plant,
natural enemies and biological control, and to maintain soft weeds in inter
rows and plant beneficial plants (eg, nectarines) for integrated pest
management and control of predators.

Mill operation

mill operations, there are several key initiatives and practices, including the
use of lagoons and polishing systems to dispose of waste water from palm oil
plants before they are discharged to waterways. This is to ensure that there is
no adverse environmental impact. Palm oil mill effluent also used as organic
fertilizer in their estates. Continuous boiler emission monitoring and periodic
stack sampling has been carried out to ensure that emissions complying with the
Environmental Quality Act (Clean Air). The storage and disposal of the wastes
listed in the schedule are based on regulatory requirement under the Department
of Environment (DOE).

Social responsibility in workplace:

            The group strives to provide safe
and conducive working and living areas to each and every employee. They enjoy
well-maintained infrastructure and facilities such as roads, schools, clinics,
transportation, playgrounds, sport facilities, community halls and
telecommunications facilities which are provided by the Group at the Group’s
estates and mills. There are few recreational activities are organized for the
employees during the year such as the Labour Day Celebrations, “Majlis Berbuka
Puasa” and the “Majlis Korban”. Throughout these activities, the spirit of
friendship among employees are woven together and their relationship will then
be closer. Their productivity or efficiency will be enhanced when they are
working happily with each other.

Corporate social responsibilities

The Group
continues to support the local community through both monetary donations and
non-monetary. To illustrate this, the Group has donated financially, donations
on equipments and material, as well as through outreach activities. Throughout
the year, the Group’s CSR emphasis on scientific and educational fields that
relating to oil palm industries. The Group’s main CSR for the year 2016 are
sponsorship and participation at the 15th International Peat
Congress 2016 organised by the Malaysian Peat Society, and at the Technology
& Innovation National Conference 2016 (Techon 2016) organized by Politeknik
Mukah, contribution to “Hari Alam Sekitar” (HASN) at National Level 2016, and
“Hari Bersama Ahli” (Pusat Pembangunan Kemahiran Sarawak), donations to various
schools at nearby estates and the Community Learning Centre (CLC) in Ladang 3,
for the children of Indonesian workers was officially established and in
operation since 2016.


Managers and Managing


Chairman, Datuk Amar Abdul Hamed Bin Sepawi whose is the highest ranking of
management officer in an organization. However, his role
includes provide leadership and management of the Board of Directors, create
conditions for the effectiveness of the board and individual directors, and
ensure that the Board discusses all key and appropriate issues in a timely
manner. Besides, in consultation with the Chief Executive and the secretary of
the company to formulate a timetable and agenda for the Board meeting, to take
fully into account the important issues faced by the group and the concerns of
all directors, and to ensure that there is sufficient time for thorough
discussion of critical and strategic issues. Chairman has to ensure effective
communication with shareholders and ensure that each director develops and
maintains an understanding of stakeholder’s view.

Group managing director:

In this
organization, group managing director, Polit Bin Hamzah is the
top manager of the organization. He is
responsible for many aspects of the business. Mainly the managing director will
be responsible for implementing the company’s policies and any changes to it.
Since the goal of the business is to focus on growth, profit and increase it
shareholder returns is the responsibility of the managing director to ensure
the company strategy is directed at this point. The role of managing director
is to manage any communication between the Board and the Chairman and
shareholder. In the secondary level, he may have
some other responsibilities. He would be responsible for the public
and the press on behalf of the company. He will be
responsible for leading, directing, and guiding the other Board members to
support their professional development. Managing director will work with other
members of the Board of Directors, identifying performance measures, and will
need to understand finance-related problems, to analyze the company’s

Chief financial officer:

financial officer is the middle
manager in this
organization. Chief financial officer, Koay Bee Eng
is responsible for managing the company’s financial behavior. Her
responsibilities include tracking cash flow and
financial planning, as well as the analysis of company’s financial strength and
weakness, and proposing corrective actions. The chief financial officer is
similar to the treasurer, because she is
responsible for the management of financial and accounting departments, and
ensuring that accurate and timely completing of the company’s financial report.
She reports to the group managing director, but to the company’s
investments, capital structure and how the company manages its revenues and
expenditures have an important input. She works
with corporate finance department, financial accounting department and
management accounting department plays a key role in the overall success of the
company, especially in long-term operations. A career as chief financial
officer requires a great deal of financial management experience and
educational training in accounting or finance.

Corporate Legal and Secretarial Manager:

Corporate legal and
secretarial manager also act as the middle manager of the company. Corporate
legal and secretarial manager, Trina Tan Yang Li is responsible for company
secretarial activities. She will work closely with the legal team on regulatory
and policy issues. Her responsibilities are to manage the secretarial procedures such as committee
and shareholders meeting and update the secretarial records as per law and
draft of documents such as notices and resolutions. Hence, it shows that she
able to use human skill during the operation. She has the ability to lead the
legal team in order to ensure the success of the company.

Head of Human Resource & Administration

Head of human resource
and administration also act as the middle manager of the company. Head of human
resource and administration, Radzi Bin Saad is responsible to maintain and
improve the company’s human resources through planning, implementing and
evaluating employee relationships and human resource policies, plans and
practices. He needs to maintain the work structure by updating job requirements
and job descriptions for all positions, maintain the organizational staff
through the establishment of recruitment, testing, interview plans and etc.  


Manager as a Planner and Strategist

            As a pioneer players in oil palm plantation in Sarawak,
to enable them to move forward, they have to maintain an optimal age profile
and achieve maximum FFB yield in years to come, they have developed key
strategic objectives to retain their business goals. There is about 1800
hectares were declared matured in year 2016 out of 400 hectares were newly
planted and 1600 were replanted.





Organisation Structure

            The type of organization
structure for the company is functional structure. From the organisation chart,
we can clearly see that the chief operating officer, chief financial officer,
head of human resource, corporate service, marketing and land administration
are directly report to group managing director, while group managing director
is reporting to the board of directors.

organization structure of the company is present in the form of tall
organizations. They practice decentralized of authority in their daily
operation, which means that the upper management has distribute their power to
lower management. By practice the decentralized organisation stucture, the
employees of the company have the best knowledge base to make decisions. The
company is able to make decisions quickly which give a competitive advantage to
the company.



conclusion, after we do the research about Sarawak Plantation Berhad, we earn a
lot of knowledge about business. By hearing the group name’s – Sarawak
Plantation Berhad, we thought the principal activity of SPB engaged in
plantation. After done this report, we know that SPB also operates under the
segments of investment holding, oil palm operations, and management service and
rental.  Investment holding segment
engages in the investment activities. Oil palm operations segment engages oil
palm cultivation, processing of fresh fruit bunches into crude palm oil and
palm kernel. For the management services and rental segment, they provides
management services and rental of investment properties. Sarawak Plantation
Berhad also operates a seed garden which supplying high yielding seeds and
seedlings and provide laboratory and technical services for the oil palm

organization structure of the group is present in tall organizational
hierarchy. There are many managers in this organization and each manager has
narrow spans of control. This means that employees under a manager will be much
smaller than a structure with a wide range of control. There are many managers
or divisions, but there are few subordinates for each manager.









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