MSM Malaysia Holdings Berhad Annual Report 2021

CORPORATE GOVERNANCE OVERVIEW STATEMENT Summary of Board Key Activities in FY2021 Below are among the key matters considered by the Board throughout the 16 meetings held during FY2021: Board Structure Remuneration and Human Resources • Accepted the Resignation of Non-Independent Non-Executive Director of MSM Malaysia Holdings Berhad • Reviewed/recommended/approved/accepted the Appointment/Reappointment/Re-election of Directors • Reviewed the report of Board Effectiveness Assessment for year 2019/2020 (BEA 2019/2020) and considered the Key Areas of Improvement based on the outcome of BEA 2019/2020 • Reviewed the Performance Assessment of the Audit, Governance and Risk Committee and its members • Reviewed and analysed the Board Annual Assessment on the Independence of the Independent Directors • Reviewed and selected the candidates recommended by NRC for the position of Group CEO and Group COO of MSM Malaysia Holdings Berhad • Reviewed and considered the proposal for the renewal of contract of the Chief Financial Officer • Reviewed the proposed Formation and Changes to the Organisational Structure of MSM Malaysia Holdings Berhad • Reviewed and approved the formation of Group Health, Safety, Environment, Security and Quality Division in MSM Group of Companies • Reviewed and approved the Proposed MSM Group Scorecard 2021 • Reviewed and approved the Proposed Financial Year 2021 Annual Increment for MSM Group of Companies • Reviewed the Proposed Formation of Group Digital Department in MSM Malaysia Holdings Berhad • Proposed Payment of One-Off Financial Assistance 2021 During Pandemic Period to the Eligible Employees of MSM Group of Companies • Reviewed the remuneration structure of Non-Executive Directors of MSM Malaysia Holdings Berhad Financial • Reviewed and approved the 2021 quarterly results and the Audited Financial Statements for the financial year 2020 • Assessed and approved the reappointment of external auditor in accordance with MSM External Auditor Policy • Reviewed the Quarterly report on: - Group Recurrent Related Party Transactions - Group’s Capital Expenditure - Recoverability and Trade Receivables - Financial Covenants - Cashflow Projection • Reviewed and approved policies: - Raw Sugar Pricing Proposal for FY2023 - Revised MSM Receivable Policy - Credit Control & Sales Payment Terms Policy - MSM Conflict of Interest Policy - MSM Referral Policy - Code of Business Conduct of Employees • Reviewed and considered the Business Plan and Budget 2022 for MSM and its Group of Companies • Reviewed the proposal in relation to MSM Group’s Climate Actions through Science Based Target Initiatives and Net Zero Ambition • Reviewed and approved the capital expenditure (CAPEX) projects for 2021 and its implementation Company and Group Operation • Monitor the implementation of CAPEX projects and utilisation of funds at MSM Prai Bhd and MSM Sugar Refinery (Johor) Sdn Bhd • Reviewed and approved the appointment of consultants to dispose MSM Perlis Sdn Bhd’s assets and reallocate some assets to MSM Prai Bhd and MSM Sugar Refinery (Johor) Sdn Bhd • Reviewed the proposal to dispose MSM Group non-core assets WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 218

RkJQdWJsaXNoZXIy NDgzMzc=