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

GROuP CHIEF EXECuTIVE OFFICER REVIEW

DIGITAL ENGAGEMENT Another immediate concern is to ensure our employees’
welfare as a healthy and able workforce is vital to continue
To help curb the COVID-19 impact and catalyse our business and refinery operations. We began the year with
digitalisation journey, in 2020 MSM adopted digital further enforcement of a robust and strong adherence
engagement in our work practices by increasing online to standard operating procedures (SOPs) coupled
and teleconference meetings to avoid frequent interstate with a continuous education programme and stringent
and inter-district travel. Previously, MSM frequently travel enforcement to ensure a healthy and capable workforce.
to operation sites and for other business meetings by
flight. In relations to the digital adaptation in our business Moving forward into the future, the Group is embarking on
approach, we managed to reduce our carbon footprint an aggressive growth in business units. Towards this end,
26 by 86% for Greenhouse Gas (GHG) emissions related to air strengthening human resources and digitalisation are our
travel. priorities in providing adequate resources and support that
commensurate with the expansion of the business units.
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
OUTLOOK
ENHANCING HUMAN RESOURCES
The year 2021 began as an outright challenging year amidst
the third wave of COVID-19 infections in Malaysia with the Recognising human capital as our most important asset
government imposing a fresh Movement Conditional Order in achieving organisational success, MSM’s Human
(MCO) that caused further declines in market demand Capital/People Partner Division has laid out five strategic
coupled with increased challenges for the SME industries. priorities for the next few years. These entail efficient
manpower planning to attain the right people size with the
Having expanded our refining capacity with MSM Johor on right people fit; build and retain human resource capabilities
stream, an immediate priority moving forward is to ensure in ensuring business and organisation sustainability;
the maximisation of Group capacity that is well supported drive a robust performance driven and teamwork
by the growth in the core business units namely Domestic culture orientation; support of a HR Digitalisation plan to
(Wholesale and Industry) and Export (refined sugar and promote accurate decision making; and cultivation of an
value added products). This is towards achieving low refining entrepreneurial and innovative mindset amongst our people.
cost in MSM Johor.
Manpower planning is the turning key for improving internal
Being an asset-based sugar player, MSM’s competitive edge controls, better management and operations of the Group.
lies on the ability to maximise assets utilisation through Hence, there shall be continuous efforts to have optimum
high process reliability. Our refined sugar cost structure departmental headcounts to reinforce the operational
is broken down into three major components namely raw effectiveness. To date, 14 positions at the Head Office and
sugar usage, sugar refining cost and other overheads Sg Buloh Warehouse have been identified to support the
(sales, distribution and administration cost). While raw initiative towards the turnaround plan.
sugar usage cost is uncontrollable and market driven, and
other overheads are mostly fixed in nature, the refining cost
varies with production volume. DIGITAL TRANSFORMATION
In this respect, we aspire to lower MSM Johor’s refining The fourth industrial revolution 4.0 (IR 4.0) has been
cost (RC) to match what is achieved at MSM Prai. catalysed by the pandemic as the power of digitalisation
and automation is increasingly required to sustain business
Efforts that will be taken to bring down the RC towards continuity today. MSM has outlined a robust plan towards
MSM Prai level in the future involve maximisation of implementation of advanced ERP system, IR 4.0 operating
production volume, efficient energy consumption and robust plants, Artificial Intelligence (AI) driven assessment and
supply chain management. Further, Management shall decision making as well as a green based operating
also undertake the ramp up plans of MSM Johor as part of environment at the workplace.
planned optimisation.
More on Business units’ performance and plans moving
forward are captured in the Business Review on page 36.