MSM Malaysia Holdings Berhad Annual Report 2020

Another key contributor to enhance margins in strategic raw sugar sourcing was MSM’s established Just-In-Time mechanism. This is set to meet its primary objectives towards improving the Group’s cash position from minimal raw sugar stockholding, lowering Bankers Acceptance (BA) interest cost and reducing external warehouse rental expenses. ACHIEVING OPERATIONAL EXCELLENCE The main challenge remains in managing the volatile global raw sugar prices to procure the lowest possible price of raw sugar for the company. To this end, MSM will continue with the current hedging methods in which all sales under the Industry and Exports are hedged back-to-back with the current prices of raw sugar (NY11). MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 37 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING