FGV Berhad : 13th AGM - MSWG Q&A Presentation

Questions from

Minority Shareholders Watch Group

QUESTION 1

How will the recent appointment of Dato' Dzulkifli Bin Abd Wahab as the new Non-IndependentNon-Executive Chairman of FGV and the resignation of Dato' Haris Fadzilah Hassan as the Company's Group Chief Executive Officer impact the Group's three-year Business Plan known as BP21, going forward? Will there be any changes to the Group's current strategies?

The recent appointment of Dato' Dzulkifli Abd Wahab as the new Non-IndependentNon-Executive Chairman of FGV and the resignation of Dato' Haris Fadzilah Hassan as the Company's Group Chief Executive Officer have no adverse impact on the Group's execution of its BP21. Further enhancements to the BP21 execution will be made to capture synergies between FELDA and FGV, which will further support FGV's overall goal to be the world's leading integrated and sustainable agribusiness player.

QUESTION 2

In September 2020, the US Customs and Border Protection ("CBP") issued a Withhold Release Order ("WRO") on palm oil and palm oil products made by FGV, its subsidiaries and joint ventures based on information that reasonably indicates the use of forced labour (page 123 of Annual Report 2020 ("AR2020")).

1. What is the estimated cost and financial impact to the Group in relation to the WRO issued by the US CBP?

We take the WRO by CBP seriously and have taken various steps including the establishment of a Foreign Workers Working Committee to look into the continuous improvement with regard to infrastructures on the ground that will further strengthen our labour practices. Presently, we are in the process of appointing an independent auditor to remediate the issues. There will be costs incurred for the remediation process which cannot yet be quantified at this point of time.

On the market side, while our direct exposure in US market is relatively small, increasingly we are facing challenges to sell to buyers who are trading in markets that are bound by the US CBP rules and regulations. To mitigate this, we have been re-allocating the quantities for these markets to

other local buyers.

QUESTION 2

1. Based on Bursa announcement dated 31 March 2021, FGV is committed to resolving the matter with the US CBP and will revisit the appointment of an independent firm in June 2021 for a comprehensive external audit on FGV's labour practices, as suggested by the US CBP. Please provide an update in relation to the WRO.

To date, FGV has called for proposals from several organisations to conduct an assessment of FGV's operations against the 11 International Labour Organization (ILO) Indicators of Forced Labour. We expect to finalise the appointment in August 2021.

QUESTION 3

Migrant labour declined slightly by 1% in 2020 compared to 2019. While the number of migrant workers who are mainly from Indonesia and Bangladesh reduced, the number of migrant workers from India increased to 4,150 (2019: 3,434) (page 68 of AR2020).

Given that the Malaysian Government had freezed the recruitment of foreign workers, how did the Group manage to increase the number of migrant workers from India in financial year 2020?

Due to the prolonged freeze of migrant workers recruitment from Bangladesh, FGV has since focused on recruitment of migrant workers from Indonesia and India. The abundant supply of migrant workers from India seeking job opportunities had resulted in higher recruitment from India in 2020. (additional of 716 workers compared to 2019)

In addition, the industry has made appeals to the government on this issue and we look forward to a positive outcome in 2021. Meanwhile, FGV continues to aggressively recruit local applicants to work

in our estates.