TSH Resources Bhd has said the RM42 million administrative fine it faces in Indonesia concerns land located outside the planted area covered in its own reporting, according to The Edge Malaysia. The Malaysian plantation group disclosed the position as it moves to recognise the penalty in its third-quarter financial statements, KLSE Screener reported.
The fine relates to unlicensed land in Indonesia, The Rakyat Post reported, adding that TSH shares fell 9.5% following the penalty. The Edge Malaysia's headline states the company's explanation that the land in question sits outside its reported planted area.
The penalty has also drawn a research view. BIMB Securities said the fine raises uncertainty over land use, according to The Malaysian Reserve. KLSE Screener separately reported that the RM42 million fine failed to dent TSH's earnings.
The company confirmed it will record the RM42 million administrative fine in its Q3 financial statements, per KLSE Screener.
What to watch next: TSH's Q3 results, which will show how the fine is booked, and any further clarification from the company or Indonesian authorities on the land involved.
