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




























                                                                                                                        37 MSM MALAYSIA HOLDINGS BERHAD   Annual Report 2020




































            Another  key contributor  to enhance  margins  in  strategic   ACHIEVING OPERATIONAL ExCELLENCE
            raw sugar sourcing was MSM’s established Just-In-Time
            mechanism. This is set to meet its primary objectives towards   The main challenge remains in managing the volatile
            improving the Group’s cash position from minimal raw sugar   global raw sugar prices to procure the lowest possible
            stockholding, lowering Bankers Acceptance (BA) interest cost   price  of  raw  sugar  for  the  company.  To  this  end,  MSM
            and reducing external warehouse rental expenses.      will continue with the current hedging methods in which
                                                                  all sales under the Industry and Exports are hedged
                                                                  back-to-back with the current prices of raw sugar (NY11).
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