MSM Malaysia Holdings Berhad Annual Report 2020

i. To restructure loan with bank ii. To seek letter of indulgence from the financier for the breach and deferment of the imposition of financial covenants i. Reduce stock holding ii. Monetise non-core assets • R educed raw sugar stock holding via “Just-In-Time” mechanism • E fforts to monetise non-productive and unutilised assets: MSM Perlis refinery operations has been successfully discontinued on 30 June 2020 Refer to pages 28, 34, 36, 38 i. Manage EPC contractor or supplier to provide performance guarantee ii. Comprehensive plant and machine upgrading and replacement programme iii. Planned and scheduled maintenance and service iv. Ensure skilled and trained operators and technicians for maintenance work v. Establish and update standard operating procedures and hazard Identification, Risk Assessment and Determining Control for all activities vi. Establish a consistent schedule of maintenance and servicing of our refining machinery, and where identified have replaced aging machinery with machine upgrades and replacements vii. Ensure maintenance plan are carried out consistently i. Balancing production capacity within MSM Group’s operation – MSM Prai and MSM Johor ii. Focus on product diversification iii. R&D on food and non- food sugar related products • C onsolidation of production in MSM Johor • L aunch of Premium Prai’s products (Sugar Stevia Mix and Sugar Sucralose Mix) • F urther exploration downstream into sugar related business Refer to pages 28, 34, 38, 41 i. Engage with government to curb and monitor the number of sugar import AP issuances ii. Staying responsive to customer feedback and providing good follow-ups to issues raised. Regular visits to improve customer relationships iii. Close monitoring of market demands and competitors’ activities iv. Ensure reliable supply and convenient delivery of good quality sugar i. Increase efficiency ii. Increase export of value- added sugar products (new SKU) • I mproving production efficiency and yield while refining cost • M SM Johor’s yield has improved to 90% in 2020 compared to 88% in 2019 • I n 2020, MSM has continued exporting premix, liquid sugar and fine syrup to China Refer to pages 28, 38 i. Forcing governments (local and/or abroad) to take extreme preventive and mitigating measures on a wide scale over a period of months including travel bans ii. All employees/contractors have to abide to the Standard Operating Procedures initiated by the government while working iii. Ensure all employees are aware of matters pertaining to hygiene, health epidemics and cleanliness and trained on contamination prevention procedures in order to prevent operational disruptions iv. Fully comply with Industrial Safety and environment regulations by reducing our Lost Time Injury i. Lower refining cost through energy cost saving strategies • E nergy cost saving projects are being explored • B iomass Boiler project and Solar photovoltaic system were identified to reduce energy cost and carbon footprint Refer to pages 28, 53 MITIGATING MEASURES OUTCOMES PAGE REFERENCES 2020 PRIORITIES MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 15 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING