MSM Malaysia Holdings Berhad Annual Report 2020

CORPORATE GOVERNANCE OVERVIEW STATEMENT PRIORITIES IN 2021 1. Optimising production levels 2. Reducing refining cost 3. Improving distribution cost 4. Monetise non-core assets 5. Increase sales of value-added sugar products Details of the Priorities can be found on pages 28 to 29, Management Discussion & Analysis of this Annual Report. ESTABLISHMENT OF BOARD EXECUTIVE COMMITTEE On 8 September 2020, the Board has appointed Fakhrunniam Othman as the Officer-In-Charge to perform the functions of the GCEO following the leave of absence of GCEO. The Board also established of Board Executive Committee (“BEC”), comprising three (3) MSM Directors, Datuk Syed Hisham Syed Wazir, Datuk Dr Abd Hapiz Abdullah and Dato’ Haris Fadzilah Hassan to guide and assist Officer-In-Charge during this interim period. On 5 October 2020, GCEO ceased office. On 8 October 2020, Fakhrunniam Othman was appointed as the Acting GCEO. The BEC was dissolved on 3 November 2020 following the appointment of the Acting GCEO. On 1 February 2021, Syed Feizal Syed Mohammad (“Syed Feizal”) has been appointed as the GCEO and Fakhrunniam Othman ceased to be the Acting GCEO on the same day. • Mid-Year Review and Forecast 2020 to discuss the following: • Status of Key Strategic Initiatives under MSM BP21 (V2); • Performance review of MSM Group for the First Half 2020 (1H 2020); • Action Plans to achieve Forecast 2020. • Group Internal Audit Investigation Report on MSM Johor Refinery Project • Due Inquiry process arising from Group Internal Audit Reports on the Inventory Adjustment in November 2019 by MSM Sugar Refinery (Johor) Sdn Bhd • Appointment of Officer-in-Charge and establishment of a Board Executive Committee following leave of absence of Group Chief Executive Officer • Misrepresentation by the former GCEO and former Group COO in the Justification Report presented to the Board to justify the RM36.6 million of Inventory Adjustment of MSM Sugar Refinery (Johor) Sdn Bhd and their failure to act in the best interest of the Company • The cessation of GCEO and Group COO and appointment of Acting GCEO and Acting Group COO • Proposed rental of an External Warehouse for Refined Sugar Storage at Bukit Jelutong for MSM Prai Berhad Number of meetings convened by each Board Committee: Number of Meetings in 2020 Audit Committee 3 Audit, Governance and Risk Committee 3 Nomination and Remuneration Committee 9 Board Governance & Risk Management Committee 3 Investment and Tender Committee 3 Board Executive Committee 7 MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 80 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT