SERVICE & PRODUCT QUALITY Improve Utilisation Factor Proactive steps were implemented at all operational locations to avoid business disruption and ensure the supply of sugar to consumers was not interrupted Improve Utilisation Factor Task team on Ramp Up was established to execute improvements towards increasing production capability. A third party i.e Sugar Specialists was engaged for technical consultation on the refinery’s overall process optimisation ImproveYield Performance of >96.6% Continuous efforts by production team in sustaining yield above 96.5% and minimise sugar losses throughout the refining process ImproveYield Performance MSM Johor’s production capabilities in Liquid Sugar and Flavoured Syrups was completed as part of the momentum to step up creation of value added products and optimise on the plant’s capacity and capability. Task team on Yield Improvement was established to focus on maximising output as well as minimising sugar losses. MSM Johor achieved a yield performance rate of 91% in FY2021. Key Activities in 2021 MSM Prai MSM Johor Target Activities MSM is capable of producing Coca-Cola specification sugar, and meeting standards set by JAKIM Halal Certification Standards of Malaysia, MS1500:2009, Food Safety System Certification (FSSC 22000 - Manufacturing), Hazard Analysis and Critical Control Point (HACCP) Certifications and Good Manufacturing Practices, amongst others that are relevanttothe industry. Quoted inThe Edge Markets 7 January 2022 Product Quality MSM’s key competitive strength has always been our consistent delivery of the highest quality of sugar products to our customers, both locally and abroad. As established under our Food Safety Policy, we are committed to provide the safest and highest quality standards preferred by our customers, and comply to all relevant laws and regulations. We have in place a Halal Policy to ensure that we produce halal sugar products in accordance with the all the relevant statutory and regulatory requirements. Our management periodically reviews the Group’s established quality objectives to ensure its suitability, adequacy and opportunity for continual improvement. This has built our market leading position for our Gula Prai brand - the number one best-selling sugar brand in Malaysia, and 3rd brand listed among the nation’s top FMCG products (based on Kantar’s Brand Footprint 2021). Our key suppliers are certified to supply quality materials as part of complying with rigorous quality inspection standards. In line with industry expectations for transparency and accountability, the certifications are clearly displayed on our sugar packaging and the MSM website for easy identification and reference. Systematic efforts are taken to address health and safety across the lifecycle of our products. We have in place a comprehensive spectrum of product quality processes and controls by certified bodies which are audited on an annual basis. These are regularly monitored through performance indicators that drive continuous improvement and are in line with industry expectations for transparency and accountability. 2020 2021 2019 MSM Group Yield Performance (%) 94.39 94.62 95.68 SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 147
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