MSM Malaysia Holdings Berhad Annual Report 2020

CHAIRMAN’S STATEMENT IN THE NEAR FUTURE SOME OF THE OPPORTUNITIES THAT MSM INTENDS TO PURSUE ISTHE EXPANSION OF REFINED SUGAR TO EXPORT MARKETS LIKE CHINA, INDONESIA, SINGAPORE AND VIETNAM; GROWTH IN DOWNSTREAM SUGAR PRODUCTS LIKE LIQUID SUGAR, FINE SYRUP AND PREMIX; AND BUSINESS COLLABORATIONS WITH MAJOR INDUSTRY PLAYERS LIKE WILMAR, MAXWILL AND COCA-COLA TO EXPAND OUR BUSINESS HORIZON. “ “ FORTIFYING GOVERNANCE & RISK MANAGEMENT MSM’s Board has been vigilant in ensuring strong governance and integrity in 2020. Throughout the year, the Board has continued its effort in ensuring that a high level of governance and transparency is exercised at all levels of business. Together with the main Board, a dedicated Board Committee known as the Audit, Governance and Risk Committee has been entrusted to ensure exemplary governance in all MSM matters and ensure that all business transactions are done in responsible and arms-length basis. Beyond that, MSM has just approved a group-wide Limit of Authority (LOA) that regulates the approval authorities on financial related transactions whereas matters related to contracts award and procurements are primarily performed by open tenders under the purview of our Investment and Tender Committee (ITC). These policies and Board oversights are expected to ensure greater level of transparency and accountability within the Group. As the COVID-19 situation became more serious during the year, MSM also formed a COVID-19 Committee that monitors the development at each business location daily and provides regular updates to management and the Board. Operationally, we have taken the necessary steps to avoid the risk of infections at the workplace as part of our effort in breaking the COVID-19 chain. Measures that have been, and continue to be, imposed include work-from-home for less essential groups, reduced number of workers at any one-time, social distancing at work and team segregation. TOWARDSTHE FUTURE For 2021, MSM’s core priorities will be to: 1. Improve MSM Johor performance to above 50% average capacity utilisation throughout the year. 2. Strengthen domestic footprint at above 65% market share with more than 400,000 tonnes consumption from wholesale and retail markets. 3. Achieve 30% improvement in exports leading to 380,000 tonnes sales volume, out of which 130,000 tonnes are to be from value-added products. 4. Harness a higher level of digitalisation, data analytics and cloud usage in our business operations towards greater adoption of Industry 4.0 application features and infrastructure. 5. Enhance the raw sugar procurement process through our Just-in-Time mechanism which capitalises the efficiencies of delivery arrangement with suppliers. Through perseverance, we are confident of success. MSM’s long established Gula Prai brand leadership, stable quality parameters, substantial capacity to grow sugar products’ business and wide network of supply and distribution regionally are core strengths that keep us in good position to leverage on emerging opportunities. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 6 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT