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

CHAIRMAN’S

STATEMENT

“ OUR MAIN PRIORITY IN IMPROVING RETURNS
FOR OUR SHAREHOLDERS IS TO CONTINUE
PURSUING OPPORTUNITIES THAT WILL
REVENUE IMPROVE THE UTILISATION OF MSM JOHOR.
RM2.18 TO THIS END WE HAVE COMPLETED THE

4 ESTABLISHMENT OF MSM’S LIqUID SUGAR
billion AND FINE SYRUP FACILITY IN READINESS TO
PENETRATE NEW MARKETS. “
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020

PERSEVERING THROUGH ADVERSITY
DEAR VALUED 2020 has been an unprecedented challenging year for the global and domestic
STAKEHOLDERS, economy at large. The COVID-19 pandemic impacted retail sugar demand and
consumption patterns of hotels and recreational outlets, due to the drastic drop
Through economic challenges
in social events, tourism related activities, and activities such as conferences
and disruptions of 2020, MSM and seminars. For MSM, this was exacerbated by the increasingly competitive
Malaysia Holdings Berhad (MSM) domestic market, lower volume of Johor plant’s operation and the removal of
continued to persevere, displaying barriers for refined sugar imports into Malaysia.
good reliability and uninterrupted Perseverance is the keyword for our operations during this period as a high
delivery to our customers. It was level of persistence and tenacity is required to maintain resilient performance
a year to focus on the health while laying the foundation for future growth. Staying focused with a positive
mindset, MSM has resiliently weathered the year’s setbacks through tough
and safety of our people and decision making, intensified marketing efforts, efficient refining operation,
foster stronger team spirit as we aggressive business development work, as well as strong conviction to deliver
redefined our vision and mission performance.
and charted a new three-year • In managing the COVID-19 situation, MSM has built supportive customer
strategic roadmap (BP21) towards service relationships with retail players by offering price incentives and
increasing growth momentum. product bundling offers that are helpful in maintaining business continuity.
The Group’s ultimate targets are • In improving the balance of our Johor operations, among other measures,
to achieve downstream integration we had initiated a change in plant’s leadership team, conducted a total
and cost optimisation by 2023 review of energy balances, strengthened the production recording system
and enhanced process efficiency.
with effective implementation
of the proposed action items • In response to increasing competition for domestic market share,
we have established sale incentives, better market demarcation for
outlined within BP21.
smooth delivery, stronger customer relationship management and closer
NY11 raw sugar purchase management to enhance product margins.
• Amidst a volatile export market, we are robustly pursuing export
opportunities, capitalising on anti-dumping policies by certain countries
and initiating market collaborations with established players like Wilmar
and Maxwill.