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146 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

SOCIAL

INITIATIVES

Supplier Management process OPERATIONAL PERFORMANCE

Supplier Selection Process Contracting Process
Plant Efficiencies
Market Survey Supplier Selection
The Utilisation Factor (UF) of our plants measure the
Screening Specification Design
efficiencies achieved during the year under review. This is
impacted by scheduled maintenance to upgrade operational
Evaluation Criteria Tender Evaluation and efficiencies as well as unexpected disruptions due to
(including ESG data) Negotiation equipment breakdowns or plant closures. For higher plant
reliability and efficiency, we strive to ensure our scheduled
Manpower Contract Award maintenance and plant upgrades, where required, are on
track during the year.
Experience Supplier Performance
Assessment However, in FY2021, MSM Johor’s UF was hampered when
Price it lost 65 days of operations in the first half of 2021 due
to a breakdown of boilers. Though MSM Prai’s plant also
experienced a shutdown in June due to detected COVID-19
cases, the period was much shorter and the plant still delivered
on yield expectations.
In December 2021, MSM concluded an agreement The Group took the opportunity to conduct annual shutdown
with Wilmar, a Singapore-based agrobusiness maintenance and extensive production and reliability
company for MSM to participate in a Sustainable improvement programme for MSM Johor during its extended
Sugar Programme, based on a No Deforestation, shutdown period.
No Peat and No Exploitation (NDPE) Policy. To improve yield performance in MSM Johor, we consulted
Under the Sustainable Sugar Programme, an external consultant to propose process optimisation
we aim to collaborate with Wilmar to establish a improvements. Yield performance is important to determine
sustainable sugar supply chain and to participate how much raw sugar is used to generate the final product as
in sourcing raw sugar that meet sustainability well how much raw sugar is lost during production.
requirements as we continuously strive towards
ethical sourcing practices and a supply chain free MSM Group Utilisation Factor (%)
of deforestation and conflict. This collaboration
demonstrates MSM’s and Wilmar’s commitment to 48 47 44
protect the environment, labour and communities
while promoting progress in operational efficiencies
and best practices. We expect to actively roll out
this programme in FY2022.
2019
2020
2021