Page 17 - MSM_AR2020

SUSTAINABILITY EFFECTIVE CORPORATE FINANCIAL ADDITIONAL DETAILS OF THE ANNUAL
REPORT LEADERSHIP GOVERNANCE STATEMENTS INFORMATION GENERAL MEETING

PAGE
MITIGATING MEASURES 2020 PRIORITIES OUTCOMES REFERENCES

PERFORMANCE • Financial Management • Poor generation flow from operations i. To restructure loan with bank i. Reduce stock holding • Reduced raw sugar stock holding
AND PROSPECTS • Governance • Non-compliance will trigger an Event of ii. To seek letter of indulgence from the ii. Monetise non-core assets via “Just-In-Time” mechanism Refer to pages
• Economic Impact Default (EOD) financier for the breach and deferment of the • Efforts to monetise non-productive 28, 34, 36, 38
Financial Capital imposition of financial covenants and unutilised assets: MSM
Perlis refinery operations has
been successfully discontinued
on 30 June 2020
CAPABILITY • Macroeconomic • Competitive sales i. Manage EPC contractor or supplier to provide i. Balancing production • Consolidation of production in 15
AND CAPACITY Conditions performance guarantee capacity within MSM MSM Johor
ExPANSION • Service & Product ii. Comprehensive plant and machine upgrading Group’s operation – • Launch of Premium Prai’s Refer to pages
28, 34, 38, 41
Intellectual Capital Quality and replacement programme MSM Prai and MSM products (Sugar Stevia Mix and
iii. Planned and scheduled maintenance and Johor Sugar Sucralose Mix)
service ii. Focus on product • Further exploration downstream
iv. Ensure skilled and trained operators and diversification into sugar related business
technicians for maintenance work iii. R&D on food and non-
Manufactured Capital v. Establish and update standard operating food sugar related
procedures and hazard Identification, Risk products
Assessment and Determining Control for all
activities
vi. Establish a consistent schedule of MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
maintenance and servicing of our refining
machinery, and where identified have
replaced aging machinery with machine
upgrades and replacements
vii. Ensure maintenance plan are carried out
consistently
OPERATIONAL • Operational • Inability to meet the Test After Completion i. Engage with government to curb and monitor i. Increase efficiency • Improving production efficiency
ExCELLENCE Performance (TAC) production per day the number of sugar import AP issuances ii. Increase export of value- and yield while refining cost
• Resource Management • Failure of critical equipment/machinery ii. Staying responsive to customer feedback and added sugar products • MSM Johor’s yield has improved Refer to pages
28, 38
Manufactured Capital • Managing Regulators (Failure/tripping of steam boiler during normal providing good follow-ups to issues raised. (new SKU) to 90% in 2020 compared to
operation, Raw Sugar Weigher Malfunction, Regular visits to improve customer relationships 88% in 2019
Failure of turbine generators, Failure of critical iii. Close monitoring of market demands and • In 2020, MSM has continued
equipment/machineries) competitors’ activities exporting premix, liquid sugar
iv. Ensure reliable supply and convenient and fine syrup to China
Natural Capital delivery of good quality sugar
IMPROVE • Talent Development • Health and safety of our workers i. Forcing governments (local and/or abroad) i. Lower refining cost • Energy cost saving projects are
SUSTAINABLE • Community • Pandemic and movement control order (MCO) to take extreme preventive and mitigating through energy cost being explored
VALUES Empowerment by Government measures on a wide scale over a period of saving strategies • Biomass Boiler project and Refer to pages
28, 53
Natural Capital • Environmental months including travel bans Solar photovoltaic system were
Assessment ii. All employees/contractors have to abide to identified to reduce energy cost
• Occupational Safety & the Standard Operating Procedures initiated and carbon footprint
Health Performance by the government while working
iii. Ensure all employees are aware of matters
Human Capital pertaining to hygiene, health epidemics and
cleanliness and trained on contamination
prevention procedures in order to prevent
operational disruptions
iv. Fully comply with Industrial Safety and
Social & Relationship Capital environment regulations by reducing our Lost
Time Injury