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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 145

Total Local Suppliers (%)
Procurement Practices
96.7% 98.0% 98.7%
MSM is committed to ethical procurement practices that
ensure a sustainable value chain to improve traceability of
raw materials sourced, utilised and distributed. The Group
Procurement Policy sets out procurement principles based
on efficiency, effectiveness, transparency and accountability,
internal control, best value, vendor performance, 2019
open competition and smart partnership. 2020
2021
We register our vendors, under the system managed by the
FGV Group Procurement, based on their commitment
to responsible practices and employment rights, safety,
quality and sustainability. We monitor the performance Local Procurement Expenses (RM million)
of our vendors and business partners via the vendor
performance evaluation process to assess their performance 294.4 253.7 329.3
at a standard level and maintain a strong vendor base
with competitive price and high quality service levels.
However, purchase of raw materials or commodities for
production of goods sold (for example: raw sugar, refined
sugar, cocoa) are excluded and are not managed through 2019
this vendor registration system. 2020
2021
All our vendor relationships are based on principles of good
governance without conflict of interest and zero tolerance
towards bribery and corruption. Our procurement process The data tracked on the local suppliers and the local
supports fair and equal treatment of all suppliers and procurement expenses referred to in the above diagrams
business partners and separation of technical and commercial apply to suppliers in Malaysia only. It excludes the raw
assessments. This is accompanied by clear communication materials procurement for the production and items or
on any new policies, guidelines and disclosures to our services related to the supply chain.
vendors and business partners to ensure smooth
collaboration.

Where possible, MSM employs locally based vendors and
suppliers to play our national role in supporting a stable local
economy. Procurement expenses from local vendors was
RM329 million in FY2021, an increase from FY2020.