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

            MARKET

            LANDSCAPE










                                                FY2021/FY2022 NATURAL GAS OVERVIEW

                                                                          Natural Gas Price
                                                Distribution segment
                                                   33.65    33.65   33.65    33.65                              36.42
               MSM has started                                                                26.85    30.03

               hedging the risk                                                       22.14

               of higher Natural                   1Q       2Q      3Q       4Q       1Q      2Q       3Q       4Q


               Gas prices in late                 FY2020                    (RM/mmBtu)                    FY2021

               FY2021 via Brent                 Gas Malaysia Bhd announced that the average natural gas selling price for the

               link derivatives                 fourth quarter of 2021 beginning from 1 October 2021 to 31 December 2021 is at
                                                RM36.42 per million British  Thermal Units (MMBtu), compared to RM30.03
                                                per MMBtu for the third quarter of 2021, which translates to a 21% increase.
               contract as part                 Natural gas makes up 30% of the cost of refining and will post an upside risk in
                                                FY2022. In early 2022, the Russian invasion in Ukraine has caused a shock to the
               of the mitigation                global energy supply. Brent Crude Oil prices have surged to new historical highs and
                                                the shortage could prevail in the mid term. As a mitigation strategy, the business has
               plans.                           embarked on hedging of Brent-linked derivatives.








                                                The domestic Wholesale refined sugar ceiling price was

                                                capped at RM2.69/kg for sugar manufacturers.  As NY11
                                                and natural gas price increase, sugar manufacturers will
                                                experience a margin squeeze. Currently, the Management

                                                is engaging the ministry in charge, KPDNHEP, to review
                                                the current gazetted ceiling price for 1kg and 2kg retail

                                                packs.
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