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

buSINESS REVIEW

40

MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020

On the business front there were small wins within a UPDATE ON CEASED OPERATIONS
challenging environment. These included achievement of
higher UF of 87% for the last three months of 2020 and MSM Perlis Sdn Bhd:
reduction of contract manpower for MSM Prai. Meanwhile, MSM Perlis’s focus for 2020 was on ramping down
MSM Johor recorded UF of 27%. Moving forward, processes, planning asset transfers and ensuring employee
MSM is focused on continuing to identify green energy welfare prior to cessation of operations on 30 June 2020.
alternatives and better waste management towards increasing MSM Perlis was the main provider for 1kg coarse grain
sustainability and enabling cost savings.
sugar packs for East Malaysia. After the switch off, this
The Group’s safety report is bittersweet. There was a production portion was handed over to MSM Prai, together
26% reduction of accident cases in 2020, but this was with four units of packing machines. In 2021, the remaining
marred by an unfortunate fatality case reported in MSM nine machines of 1kg packing machines will be installed in
Prai in January 2020. Management ensured immediate MSM Johor.
safeguards and heightened awareness was established Employees were offered opportunities to pursue their career
site-wide following the incident. Detailed investigations either at MSM Prai or MSM Johor. Some workers decided to
was conducted in close collaboration with the FGV take the path of retirement and some were still contributing
Group Safety, Health & Environment Department and the as a temporary skeletal staff to monitor, maintain and take
Department of Safety and Health Malaysia (DOSH). care of the transfer and sales of remaining company assets,
Compliance to DOSH, DOE and Fire Department regulatory land and facilities.
requirements continue to be maintained with the
completed reviewing of 183 HIRARC, submission of online Plantation:
report to DOE every three days during MCO and CMCO
period without fail, and confirmation of Standard Operating The entire plantation land under MSM Perlis, planted with
Procedure (SOP) compliance weekly report to MITI. rubber, oil palm and Harumanis mango, had ceased operations
since 15 September 2019. The decision on the next use of
Putting our employees first remains a key priority going the land is still ongoing, in line with recommendations to
forward. MSM is committed to maintain industrial harmony sell the land to interested parties.
by curbing grievances or disputes. To this end, a collective
agreement was prepared on June 2021.