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DETERMINING MATERIALITY

The aim of MSM’s Annual Report is to provide a transparent, balanced The material matters and developments which are covered in the
and accessible narrative and analysis of our strategy, performance report were determined by taking into account the following
and prospects in relation to material, financial, economic, social, considerations:
environmental and governance matters. Our reporting encompasses
all material developments concerning MSM up until the approval of • Quantitative and qualitative criteria and factors in relation to MSM’s
the annual financial statements. It focuses on MSM as a Group and business and operations
encompasses our operating subsidiaries, i.e. MSM Prai Berhad, MSM • Matters critical to achieving our strategic objectives and creating
Logistics Sdn Bhd and MSM Sugar Refinery (Johor) Sdn Bhd. Financial long-term value for our stakeholders
and non-financial data from our subsidiaries are consolidated for ease • Matters covered in reports submitted to the Board of Directors for
of reference. We have also included pertinent information that should discussion or approval
assist stakeholders in making an informed assessment of MSM • Material risks identified by our risk management process
and how we are able to strategically create and sustain long-term • Key stakeholders’ interests
stakeholder value.
All material matters and developments thereof for the reporting
year under review can be found within Shaping Material Matters on
page 10 and Management Discussion & Analysis (MD&A) from
page 23 onwards.

FEEDBACK

MSM’s integrated reporting process is intended to move beyond We value feedback and welcome questions or comments on our
compliance to generate meaningful and inclusive discourse with our reports. To share feedback, please contact our Investor Relations unit
stakeholders with the aim of informing our strategy and building trust. at +603 2181 5018 or e-mail us at investor.relations@msmsugar.com.

FORWARD LOOKING STATEMENTS
Certain statements in this report regarding MSM’s operations may goals, strategies, future operations and performance of MSM. Actual
constitute forward-looking statements. These statements can be results and outcomes may differ materially from those projected in any
identified by key words such as “believes”, “estimates”, “anticipates”, forward looking statements due to various events, risks, uncertainties
“expects”, “intends”, “may”, “will”, “plans”, “outlook” and other words of and other factors. We neither intend to nor assume any obligation to
similar meaning in connection with a discussion of future operating or update or revise any forward looking statements, whether as a result
financial performance. These statements relate to the plans, objectives, of new information, future events or otherwise.

FINANCIAL CAPITAL MANUFACTURED INTELLECTUAL CAPITAL
CAPITAL
Our financial capital enables us to Our strong brand, expertise,
provide salaries for our employees, We produce the highest quality sugar capabilities and established
dividends for our shareholders and with assured certifications. We also technologies steer our business
investment in communities while ensure availability of refined sugar success. We have over 50 years of
driving sustainable growth through through effective stock management. industry expertise and our Gula Prai
reinvestments to maintain and grow With the cessation of our refining brand is a testament that its brand
our business. Our investors’ funds operations in MSM Perlis Sdn Bhd values are being passed on from one
are wisely invested to increase our following the consolidation of generation of Malaysians to the next.
operational efficiency as well as to operation to our new MSM Sugar These have ensured our domestic
initialise operations in our plants. Refinery (Johor) Sdn Bhd plant, market share dominance of 60%.
our current capacity decreased to Our production is anchored on quality
NATURAL CAPITAL 2.05 mil tonnes. However, the new certified management processes and
systems.
plant has provided us with wider
potential and prospect to maintain
Raw sugar and fuel are the natural
capitals of our industry. We depend our market leadership, venturing into SOCIAL & RELATIONSHIP
on reliable access to these to new market segments and expanding CAPITAL
maintain smooth operations. Price export footprint.
of raw sugar has a great impact We were established to ensure
on our profit margin as we have no HUMAN CAPITAL national self-sufficiency in sugar, and
direct control on pricing. We build have since become the flagbearers of
trusted relationships with raw sugar Our skilled employees and Malaysia’s sugar industry. As such,
suppliers and exercise hedging experienced management team are our social and relationship capital
strategies to optimise on better our greatest assets. We have 1,049 are the relationships of trust we
deals. We are mindful of our impact to employees which are considered build with our stakeholders – our
the environment and are committed skilled industry experts who provide employees, customers, suppliers,
towards conducting business in an us a competitive edge in helping investors, communities, regulators,
environmentally responsible and us maintain market leadership. the government, industry partners
sustainable manner. We are guided Via training and skill enhancement and the media. We contribute to
by Environmental Management initiatives such as Staff Mobility national and community development
System by which we continue to Programme, we seek to maintain a through the payment of taxes and
record improvements in waste and good quality talent pool within the zakat, as well as create employment
greenhouse gases emissions as well Group. opportunities by maintaining
as water and energy consumption profitable operations.
through our investments in green
technologies within our Penang and
Johor plants.