Page 27 - MSM_AR2020

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

GROuP CHIEF EXECuTIVE OFFICER REVIEW

STAYING RESILIENT
Contributed over
There are still identified challenges towards MSM’s
performance outlook due to the Group’s large refining RM120,000
capacity. MSM has to enhance its domestic market
position and expand its export market footprint whilst faced
with high production cost, borrowing commitments and worth of sugar products in basic
volatility of external market factors. Having analysed the food products care packages
Group’s competitive position, Management has identified
opportunities for the Group and formed the basis of the
strategies for the next three years. The aim is to ensure MSM’s 25
financial performance keeps on improving and sustainable. In 2020, we strove to increase engagement opportunities
with our employees and the community in nurturing resilience
Based on a strategic analysis, as well as review of current within a challenging pandemic period. More investments
risks and opportunities, Management has set out seven towards digitalisation were also initiated towards meeting
key strategic initiatives (KSIs) under MSM’s BP21 that shall new norms for business continuity.
uphold the four key strategic thrusts of Operational
Improvement, Product and Market Penetration, New Growth
Area and Financial Capability Building. EMPLOYEE ENGAGEMENT

More information on MSM Strategy can be found on page 28. Due to COVID-19, the Group’s scheduled people
engagement activities could not be carried out as
To mitigate present key risks, we commit to undertake the planned. Instead, MSM focused on digital communication MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
measures below in the near term: channels and activated a people outreach channel to
strengthen employee-management synergy and harmony.
1. Expand refined sugar export to regional target markets Open channels of communication were established to
i.e. Singapore, China, Vietnam and Indonesia.
enable sharing of constructive values and information
2. Develop more volume of specialty products, such as during a period of uncertainty. In order to lighten the burden
liquid sugar, fine syrup and premix. of all employees during this difficult period, MSM also
contributed basic food essential packs that contained sugar,
3. Increase utilisation factor in MSM Johor through cooking oil, rice, sweetened creamer and instant noodles.
enhance availability, reliability, yield, energy efficiency
and well managed preventive maintenance programme.
COMMUNITY ENGAGEMENT
4. Closely monitor and manage NY11 price, freight and During the year, MSM continued with our zakat contributions
foreign exchange position.
of more than RM1 million to the disadvantaged as well
5. Leverage on through continuation of the Just-In-Time as MSM Prai’s voluntary cleaning and maintenance of the
mechanism for raw sugar procurement as this has Taman Tunku, Seberang Jaya park every fortnight. This has
proven effective in reducing stock holding, reducing been an ongoing community programme with Seberang Prai
costs and cash commitments. Municipal Council that has been established since 2013.
More on Risks & Opportunities and BP21 can be found on Additionally, in view of the impact the pandemic had on the
pages 30 and 31 respectively. livelihoods of certain segments of the community, we also
contributed over RM120,000 worth of sugar products in
FOCUS ON SUSTAINABILITY basic food products care packages through collaboration
with various associations, non-governmental organisations
MSM’s focus on sustainable growth continues to be (NGO) and government agencies such as Yayasan Food
trained on ensuring good governance practices, enabling Bank Malaysia, NADMA and FELDA.
a fair and safe workplace, taking care of our employees,
maintaining energy and water savings, managing waste
and emissions and contributing to the community.