Page 101 - MSM_AIR2021

SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 99

Improve MSM Johor’s Improve Sales & Distribution Increase Growth in Growth in Value Added
S1 Production Capability, S2 through Territory Consolidation S3 Domestic Volume S4 Segment Sales
Yield and Refining Cost and Area Demarcation
Strategic Capital
S5 S6 Export via Strategic Partnership S7 Monetise Non-core Asset
Management

Governance Macroeconomic conditions

Impacts Impacts
• Compliance with laws and regulations • Exposure towards fluctuations in commodity and raw sugar
• Management of procurement policies and practices price
• Management of Anti-Corruption policies and procedures • Trading risks involved in futures market
• Management of governance policies and issues • Adverse forex movements
• Management of anti-competitive behaviour and • Raw sugar price influenced by global climate, economy and
monopoly practices political factors
• Responsible sourcing practices • Legal and regulatory changes
• Trade wars and protectionist policies
• Health pandemic & climate change

Our Response Our Response
• Active engagement, dialogue and briefings with MSM • Constantly monitor the world sugar price at NY11,
employees back-to-back hedging for industry and export sales and
• Enhance business framework to adapt to regulatory hedging lower than the budgeted for wholesale market
requirements • Implementation of Just-In-Time mechanism to reduce
• Adopt and update relevant policies working capital requirements, as well as having
• Improve governance, compliance and transparency arrangements with suppliers to ensure sustainable supply of
framework raw sugar is secured
• Put in place adequate procedures such as Anti-Bribery • Improve margins by increasing Average Selling Price to
Policy Statement and Whistleblowing Policy at MSM industry
website in compliance with 15.29 (1), and (2) of Main • Continuous engagement with the government and relevant
Market Listing Requirements (Listing Requirements) ministries such as Ministry of Domestic Trade & Consumer
guided by the Guidelines on Adequate Procedures, Affairs (KPDNHEP), and Ministry of International Trade
section 17A (5) of the Malaysian Anti-Corruption & Industry (MITI) to collaborate on APs, compliance,
Commission (MACC) Act 2009 (Amendment Act 2018) smuggling, safety and environmental matters
• 100% Signing of Integrity Pledge • Close monitoring of industry and regulatory developments
worldwide
• In normal operation activities and in reaction to the
COVID-19 pandemic, our Business Continuity Management
plan sets strategies to actively increase corporate resilience.
The objective is clear: to prevent suspension of operations
or services

Link to Strategy Link to Strategy
• MSM’s Sustainability Initiatives on Social:
Economic Impact and Governance S2 S3 S4 S5 S6