MSM Malaysia Holdings Berhad Annual Report 2020

• Provision of fair and decent work environment and wage policies • Impact to surrounding communities and mitigating actions • We have the plan in place through our Business Continuity Management (BCM). In ensuring readiness, we conduct BCM testing involving and/or taking into account the stakeholders and the surrounding community • In normal operation activities and in reaction to current pandemic (COVID-19), BCM sets strategies to actively increase corporate resilience. The objective is clear: to prevent suspension of operations or services • Exposure towards fluctuations in commodity and raw sugar price • Trading risks involved in futures market • Adverse FOREX movements • Raw sugar price influenced by global climate, economy and political factors • Legal and regulatory changes • Trade wars and protectionist policies • Health pandemic and climate change • Constantly monitor the world sugar price at NY11, back-to-back hedging for industry and export sales and hedging lower than the budgeted for wholesale market • Implementation of Just-In-Time mechanism to reduce working capital requirements, as well as having arrangements with suppliers to ensure sustainable supply of raw sugar is secured • Provision of fair and decent work environment and wage policies • Adhering to safety and health industry standards to reduce fatalities, injuries, accidents and illnesses of our employees, their families, contractors and customers • Enhance policies, procedures and risk practices in line with regulatory standards • Close monitoring of industry and regulatory developments worldwide • Active engagement with related agencies to collaborate on APs, compliance, smuggling, safety and environmental matters • Continuous engagement with the government and relevant ministries such as Ministry of Domestic Trade & Consumer Affairs (KPDNHEP), Ministry of International Trade & Industries (MITI) and Department of Environmental (DOE) • Waste stream management is outsourced to a supplier licensed by the Environmental Department to collect, transport, process and dispose waste in accordance with local regulations and standards • Sustained financial, dividend and share performance • Responsible investment in new business strategy, mergers and acquisition • Strengthening risk and governance policies • Optimising our funding strategy and gearing ratio • Prudent capital expenditure (CAPEX) allocation • Maintain healthy cash balance • Improve financial performance • Improve governance, compliance and transparency framework • Pursue value enhancing opportunities • Minimise losses and improve the overall Group performance • New investments and expansions were further rationalised and regulated to prioritise profitability and focus on business continuity and sustainable • Further explore downstream into sugar related business unlocking value-added income stream • Monetise all the non-strategic and non-productive assets MACROECONOMIC CONDITIONS FINANCIAL MANAGEMENT SHAPING MATERIAL MATTERS ENVIRONMENTAL ASSESSMENT MANAGING REGULATORS IMPACTS OUR RESPONSE LINK TO STRATEGY MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 12 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT