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

CHAIRMAN’S STATEMENT

“ IN THE NEAR FUTURE SOME OF THE
OPPORTUNITIES THAT MSM INTENDS TO
PURSUE IS THE ExPANSION OF REFINED SUGAR
TO ExPORT MARKETS LIKE CHINA, INDONESIA,
SINGAPORE AND VIETNAM; GROWTH IN
DOWNSTREAM SUGAR PRODUCTS LIKE
LIqUID SUGAR, FINE SYRUP AND PREMIx;
6 AND BUSINESS COLLABORATIONS WITH
MAJOR INDUSTRY PLAYERS LIKE WILMAR,
MAxWILL AND COCA-COLA TO ExPAND OUR
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
BUSINESS HORIzON. “

FORTIFYING GOVERNANCE & RISK MANAGEMENT TOWARDS THE FUTURE

MSM’s Board has been vigilant in ensuring strong governance For 2021, MSM’s core priorities will be to:
and integrity in 2020. Throughout the year, the Board has
continued its effort in ensuring that a high level of governance 1. Improve MSM Johor performance to above 50% average
and transparency is exercised at all levels of business. capacity utilisation throughout the year.
Together with the main Board, a dedicated Board Committee 2. Strengthen domestic footprint at above 65% market
known as the Audit, Governance and Risk Committee has share with more than 400,000 tonnes consumption from
been entrusted to ensure exemplary governance in all wholesale and retail markets.
MSM matters and ensure that all business transactions
are done in responsible and arms-length basis. 3. Achieve 30% improvement in exports leading to
380,000 tonnes sales volume, out of which 130,000
Beyond that, MSM has just approved a group-wide Limit of tonnes are to be from value-added products.
Authority (LOA) that regulates the approval authorities on
financial related transactions whereas matters related to 4. Harness a higher level of digitalisation, data analytics
contracts award and procurements are primarily performed and cloud usage in our business operations towards
by open tenders under the purview of our Investment and greater adoption of Industry 4.0 application features and
Tender Committee (ITC). These policies and Board oversights infrastructure.
are expected to ensure greater level of transparency and
accountability within the Group. 5. Enhance the raw sugar procurement process through
our Just-in-Time mechanism which capitalises the
As the COVID-19 situation became more serious during efficiencies of delivery arrangement with suppliers.
the year, MSM also formed a COVID-19 Committee that
monitors the development at each business location daily Through perseverance, we are confident of success.
and provides regular updates to management and the Board. MSM’s long established Gula Prai brand leadership,
Operationally, we have taken the necessary steps to avoid stable quality parameters, substantial capacity to grow
the risk of infections at the workplace as part of our effort sugar products’ business and wide network of supply and
in breaking the COVID-19 chain. Measures that have been, distribution regionally are core strengths that keep us in good
and continue to be, imposed include work-from-home for position to leverage on emerging opportunities.
less essential groups, reduced number of workers at any
one-time, social distancing at work and team segregation.