Chemical Company of Malaysia Berhad Annual Report 2019

Following a focus on cost optimisation, we have achieved higher savings through operational excellence measures that include process automation, energy efficiency projects and procurement controls. These have helped us manage costs and improveoverall businessefficiency thus supporting our ambition of becoming a market leader in the chemicals and polymers businesses. The setting up of an advanced new ultra-modern laboratory for polymers research and development (R&D) too augurs well for us as it will enable the Group to capitalise on demand growth in the polymers segment. Today, the Polymers Division is leveraging on the new laboratory to escalate new product development as well as testing and developmental activities beyond the gloves sector. This is part of our on-going efforts to grow our non- gloves product portfolios. Coupled with investments into cutting edge laboratory equipment, this will fast-track our R&D and diversification efforts in new areas of opportunity. Apart from this, we have plans to diversify our Chemicals and Polymers product portfolio to harness exciting new opportunities to drive new growth and revenue streams. Tapping Enhanced Cost Efficiencies Amidst the tough market and operating conditions, CCM has been focusing its efforts on cost optimisation initiatives. To date, we have achieved savings through operational excellence measures that include process automation, energy efficiency projects and procurement controls. These initiatives have helped us manage costs and improve overall business efficiency thus supporting our ambition of becoming a market leader in the Chemicals and Polymers segments. Going forward, we will continue to embed a culture of excellence in productivity and cost management as well as explore opportunities to diversify our business and product portfolios – all with the aim of creating greater stability for our future earnings. The finer details of the above mentioned developments are spelt out in the MD&A section of this Annual Report. Official Opening of Calcium Nitrate Plant 13 ANNUAL REPORT 2019 BUSINESS OVERVIEW GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION