MSM Malaysia Holdings Berhad Annual Report 2020

Contributed over RM120,000 worth of sugar products in basic food products care packages STAYING RESILIENT There are still identified challenges towards MSM’s performance outlook due to the Group’s large refining capacity. MSM has to enhance its domestic market position and expand its export market footprint whilst faced with high production cost, borrowing commitments and volatility of external market factors. Having analysed the Group’s competitive position, Management has identified opportunities for the Group and formed the basis of the strategies for the next three years. The aim is to ensure MSM’s financial performance keeps on improving and sustainable. Based on a strategic analysis, as well as review of current risks and opportunities, Management has set out seven key strategic initiatives (KSIs) under MSM’s BP21 that shall uphold the four key strategic thrusts of Operational Improvement, Product and Market Penetration, New Growth Area and Financial Capability Building. More information on MSM Strategy can be found on page 28. To mitigate present key risks, we commit to undertake the measures below in the near term: 1. Expand refined sugar export to regional target markets i.e. Singapore, China, Vietnam and Indonesia. 2. Develop more volume of specialty products, such as liquid sugar, fine syrup and premix. 3. Increase utilisation factor in MSM Johor through enhance availability, reliability, yield, energy efficiency and well managed preventive maintenance programme. 4. Closely monitor and manage NY11 price, freight and foreign exchange position. 5. Leverage on through continuation of the Just-In-Time mechanism for raw sugar procurement as this has proven effective in reducing stock holding, reducing costs and cash commitments. M ore on Risks & Opportunities and BP21 can be found on pages 30 and 31 respectively. FOCUS ON SUSTAINABILITY MSM’s focus on sustainable growth continues to be trained on ensuring good governance practices, enabling a fair and safe workplace, taking care of our employees, maintaining energy and water savings, managing waste and emissions and contributing to the community. In 2020, we strove to increase engagement opportunities with our employees and the community in nurturing resilience within a challenging pandemic period. More investments towards digitalisation were also initiated towards meeting new norms for business continuity. EMPLOYEE ENGAGEMENT Due to COVID-19, the Group’s scheduled people engagement activities could not be carried out as planned. Instead, MSM focused on digital communication channels and activated a people outreach channel to strengthen employee-management synergy and harmony. Open channels of communication were established to enable sharing of constructive values and information during a period of uncertainty. In order to lighten the burden of all employees during this difficult period, MSM also contributed basic food essential packs that contained sugar, cooking oil, rice, sweetened creamer and instant noodles. COMMUNITY ENGAGEMENT During the year, MSM continued with our zakat contributions of more than RM1 million to the disadvantaged as well as MSM Prai’s voluntary cleaning and maintenance of the Taman Tunku, Seberang Jaya park every fortnight. This has been an ongoing community programme with Seberang Prai Municipal Council that has been established since 2013. Additionally, in view of the impact the pandemic had on the livelihoods of certain segments of the community, we also contributed over RM120,000 worth of sugar products in basic food products care packages through collaboration with various associations, non-governmental organisations (NGO) and government agencies such as Yayasan Food Bank Malaysia, NADMA and FELDA. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 25 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING