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CHAIRMAN'S STATEMENT

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Our main priority in improving returns for our shareholders is to continue pursuing opportunities that will improve the utilisation of MSM Johor. To this end we have completed the establishment of MSM’s liquid sugar and fine syrup facility in readiness to penetrate new markets.
Dear Valued Stakeholders,

Through economic challenges and disruptions of 2020, MSM Malaysia Holdings Berhad (MSM) continued to persevere, displaying good reliability and uninterrupted delivery to our customers. It was a year to focus on the health and safety of our people and foster stronger team spirit as we redefined our vision and mission and charted a new three-year strategic roadmap (BP21) towards increasing growth momentum. The Group’s ultimate targets are to achieve downstream integration and cost optimisation by 2023 with effective implementation of the proposed action items outlined within BP21.

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SIX CAPITALS

capital 1 FINANCIAL CAPITAL

INPUTS

» Total Assets: RM2.8 billion
» Deposits, cash and bank balances: RM196 mil
OUTPUTS

» RM2.2 billion revenue
» (4.5%) return on equity
» (10.13) sen earnings per share
» 2.25 assets per share
HIGHLIGHTS

» 9% increase in revenue

capital 1 MANUFACTURED CAPITAL

INPUTS

» Total Refineries: 2
» Total Warehouse: 1
» Total Capacity: 2.05 mil tonnes
OUTPUTS

» 1,010,215 million tonnes annual production output
» Wholesale sales volume of 295,578 tonnes
» Industry sales volume of 458,397 tonnes
» Export sales volume of 270,628 tonnes
HIGHLIGHTS

» Total Capacity for FY2020 is 2.14 mil tonnes
» However, the current capacity has been further reduced to 2.05 mil tonnes following cessation of operation in MSM Perlis Sdn Bhd

capital 1 INTELECTUAL CAPITAL

INPUTS

» Product Brand: Gula Prai & Premium Prai
» IT infrastructure
» Product certifications and compliance
OUTPUTS

» Brand value of RM624.3 million
» RM0.60 million IT CAPEX expenses
HIGHLIGHTS

» Rebranding of Gula Prai retailpackaging

capital 1 NATURAL CAPITAL

INPUTS

» Water Consumption
» Energy Usage
» Greenhouse Gas (GHG) Emissions
OUTPUTS

» 2,577,381 m3 of water consumed
» 47,407,844kWh total purchased electricity
» 72,345,310kWh total own generated electricity
» 32,901.04tonnes of CO2 emissions from electricity consumption
» 6.5tonnes of CO2 emissions from business air travel
HIGHLIGHTS

» Reduction of 0.8% in total purchased electricity
» Reduction in CO2 emissions from Air Travel by 86%

capital 1 HUMAN CAPITAL

INPUTS

» Total Employees: 1,049
» Total Senior Management Team: 3
OUTPUTS

» 4.4:1 male to female ratio at managerial level
» 11,315 training hours
HIGHLIGHTS

» Below recommended target of 30% female representation at all levels
» Our investment for employee’s training and development has increased by9.7%

capital 1 SOCIAL & RELATIONSHIP CAPITAL

INPUTS

» Employee volunteer hours
» Spending on CSR Programmes
» Employee Training
» Lost Time Injury » Incident Rate
OUTPUTS

» ›18.23% incident rate
» ›2,000 volunteer hours
» ›RM100,000 was spent for CSR Programme
HIGHLIGHTS

» Cases due to accidents during work hours reduced 26%from 39 cases in 2018 to 29 cases in 2020
» 1 fatality case reported

STRATEGIC PERFORMANCE

Monetise non-core assets
Synergising international trades with regional reputable players
Financial performance was mainly affected by lower sugar consumption in the Domestic segment due to MCO

Balancing production capacity within MSM Group’s operation – MSM Prai and MSM Johor
Launch of Premium Prai’s products (Sugar Stevia Mix and Sugar Sucralose Mix)
Further exploration downstream into sugar related business
Export value-added sugar products (new SKU)

Reduce raw sugar stock holding via “Just-In-Time” mechanism
Improving production efficiency and yield to reduce refining cost
Discontinued non-strategic operations – complete discontinuation of MSM Perlis operations on 30th June 2020

Energy cost saving projects are being explored
Target of 30% female representation at all levels

Key On-Going Non-performance

GROUP CHIEF EXECUTIVE OFFICER
REVIEW

2020 Market Overview

Global and local markets were hit by an unprecedented impact from COVID-19 in 2020 that continues to reverberate into 2021. This has changed the landscape of business and challenged many industries, some of which, such as travel and hospitality, are recording immense setbacks following the travel bans and other virus containment measures imposed by the Government.

“During the initial phase of MCO, most of the domestic customers suspended their operations whilst the Industry customers were facing export supply chain disruptions. Nonetheless, consumption trends have been improving since Q3 2020 based on the positive operational earnings of the Group since July 2020.”

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© 2018 MSM Malaysia Holdings Berhad (935722-K)