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

MAINTAINING MARKET LEADERSHIP out the market, MSM introduced two new product variants
to support this lifestyle choice – namely, GoNatura & Go1/2.
In 2020, MSM’s production output for the first half of 2020 These are sugar mixes which provide intense sweetness
was hampered by the contraction in local demand due to with less use of pure sugar. MSM is hopeful that these new
the Movement Control Order (MCO) imposed as a result of variants will find a niche market among health conscious
the COVID-19 pandemic. Following the opening up of local Malaysians with a sweet tooth.
economy in June to September 2020, output started to
increase in line with sales demands. Factory operation was The momentum to step up creation of value added products
stretched without shutdown since May 2020 to meet this also continues to build to optimise on MSM Johor’s capacity
sudden surge in domestic sales. and capability. MSM has been producing premix, Liquid
sugar (LS) and Fine Syrup (FS) for export markets such as
As a result, MSM closed the year strongly, recording record Indonesia and Philippines since March 2020. Liquid sugar 39
high production output of 295,646 tonnes in the final quarter, production capacity is targeted to increase from 3,500
7% higher than the same quarter in the previous year. Group tonnes/month to 20,000 tonnes/month; while the premix
UF for the final quarter also improved to 57.7%, compared product capacity is targeted to grow from 180 tonnes/month
to 49.42% in the last quarter of 2019, with higher yield of to 1,200 tonnes/month. Plans to venture into flavoured
95.43%, compared to 94.63% the previous year. syrup are underway and the required installation of machine
is in progress. Several variations of flavoured syrup are being
Analysing year-on-year yield, overall Group yield has improved studied.
from 94.39% in FY2019 to 94.62%, showing more efficient
sugar refining and lower loss. Operational focus continues to be directed towards
optimising refining cost as per budget, achieving production
Moving forward within a more competitive landscape, MSM targets with quality products and on time delivery to end MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
is committed to act proactively in order to maintain market customers. A planned consolidation of group production
leadership. On the Wholesales front, a consolidation of facilities took off in FY2020 with the cessation of MSM
wholesalers for efficient fulfilment of demand, better focus Perlis in June 2020. This was towards optimising on refining
and improved segmental mix is in the pipeline. This strategic cost, with MSM Johor benefitting from the additional uptake
partnership, and possible OEM with major wholesalers will of MSM Perlis’s quota. The consolidation benefits should be
allow MSM to leverage on their strength and logistic assets. more evident next year once market demand stabilises to
In addition, marketing strategies that offer flexible price normal rates again.
mechanisms through rebates, bundling and door to door
offers will be more intensively explored. For overall improved performance, efforts were undertaken
to identify key optimisation issues for MSM Johor and a
For the Industry segment, MSM’s focus is to ensure premium few action plans have been established to help ramp up
product and service quality, as well as heighten direct and improve the plant’s UF. A Task Team has been formed
engagements with selected small medium industries (SMIs) for the areas of Ramp Up, Improve Yield and Robust
and global players in fast moving consumer goods (FMCGs). Data recording; and a third party has been engaged for
Through this we intend to expand our current SMI market consultation on the refinery’s steam and conveyor system.
share and increase collaborations to widen our distribution
network especially in Singapore and Vietnam. Efforts are also
ongoing to improve stockholding units (SKUs) of our popular ACHIEVING OPERATIONAL ExCELLENCE
variants such as coarse grain sugar to ensure reliable delivery.
For MSM, operational excellence is defined by both business
and sustainability aspects.
ENSURING CONTINUOUS GROWTH
Given the pandemic, a key priority for business continuity
In ensuring continuous growth, new marketing studies was to ensure the workplace remained free from COVID-19
revealed the growing trend among select groups of choosing cases. To this end, the Group swiftly put in place action
sugar free products that contain less calories. Within the new plans to implement SOPs, weekly disinfections of common
normal of 2020, when work from home became a common areas, sanitisation activities, facial scanner temperature
occurrence, there was increasing public awareness on checks of all personnel plus keeping records, providing
staying fit and healthy by consuming less sugar. In testing masks, partitioning dining tables at canteens for social
distancing and carrying out COVID-19 desktop drills.