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CHAIRMAN’S DELIVERING MSM MANAGEMENT DISCUSSION GROUP FINANCIAL
STATEMENT VALUE OVERVIEW & ANALYSIS REPORT

SHAPING MATERIAL MATTERS

IMPACTS OUR RESPONSE LINK TO STRATEGY

ENVIRONMENTAL ASSESSMENT

• Provision of fair and decent work • We have the plan in place • In normal operation activities and in reaction
environment and wage policies through our Business Continuity to current pandemic (COVID-19), BCM sets
• Impact to surrounding communities Management (BCM). In ensuring strategies to actively increase corporate
and mitigating actions readiness, we conduct BCM resilience. The objective is clear: to prevent
testing involving and/or taking into suspension of operations or services
account the stakeholders and the
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surrounding community
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
MACROECONOMIC CONDITIONS
• Exposure towards fluctuations in • Constantly monitor the world sugar • Implementation of Just-In-Time mechanism
commodity and raw sugar price price at NY11, back-to-back hedging to reduce working capital requirements,
• Trading risks involved in futures for industry and export sales and as well as having arrangements with suppliers
market hedging lower than the budgeted to ensure sustainable supply of raw sugar is
• Adverse FOREX movements for wholesale market secured
• Raw sugar price influenced by global
climate, economy and political factors
• Legal and regulatory changes
• Trade wars and protectionist policies
• Health pandemic and climate change

MANAGING REGULATORS
• Provision of fair and decent work • Enhance policies, procedures and • Continuous engagement with the government
environment and wage policies risk practices in line with regulatory and relevant ministries such as Ministry
• Adhering to safety and health industry standards of Domestic Trade & Consumer Affairs
standards to reduce fatalities, • Close monitoring of industry and (KPDNHEP), Ministry of International Trade
injuries, accidents and illnesses regulatory developments worldwide & Industries (MITI) and Department of
of our employees, their families, • Active engagement with related Environmental (DOE)
contractors and customers agencies to collaborate on APs, • Waste stream management is outsourced
compliance, smuggling, safety and to a supplier licensed by the Environmental
environmental matters Department to collect, transport, process
and dispose waste in accordance with local
regulations and standards

FINANCIAL MANAGEMENT

• Sustained financial, dividend and • Improve financial performance • Minimise losses and improve the overall Group
share performance • Improve governance, compliance performance
• Responsible investment in new and transparency framework • New investments and expansions were
business strategy, mergers and • Pursue value enhancing further rationalised and regulated to prioritise
acquisition opportunities profitability and focus on business continuity
• Strengthening risk and governance and sustainable
policies • Further explore downstream into sugar related
• Optimising our funding strategy and business unlocking value-added income stream
gearing ratio • Monetise all the non-strategic and
• Prudent capital expenditure (CAPEX) non-productive assets
allocation
• Maintain healthy cash balance