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ABOUT THIS REPORT

REPORTING SCOPE AND BOUNDARY MATERIALITY
This report covers our financial and non-financial performance MSM applies the principle of materiality to determine the
during the period from 1 January 2021 to 31 December 2021. content of our integrated report and defines materiality as
Our reporting encompasses all material developments matters that substantially affect MSM Group’s ability to create
concerning MSM up until the approval of the annual financial and sustain value over the short, medium and long-term.
statements. It focuses on MSM as a Group and encompasses These matters were identified, prioritised and validated via a
our operating subsidiaries, i.e. MSM Prai Berhad, MSM materiality assessment described in page 96. Subsequently,
Logistics Sdn Bhd and MSM Sugar Refinery (Johor) Sdn Bhd. our key stakeholders were engaged throughout this process,
and this has enabled MSM to incorporate their inputs into
This report has been compiled in accordance with the our business perspective. Our strategic responses to these
concepts, guiding principles and content elements contained material matters are presented in pages 96 to 101.
in the IIRC framework. This framework employs a reporting
approach to create short, medium and long-term value as well
as the connectivity and interdependencies of the six capitals,
namely human, natural, manufactured, financial, intellectual, FORWARD LOOKING STATEMENT
and social & relationship capital. Information presented
relates to the principal activities of MSM Group and all its MSM’s forward looking statements are inclusive of MSM
subsidiaries, unless stated otherwise. Group’s future direction, strategies, and potential opportunities
for growth. These statements can be identified by key words
such as “believes”, “estimates”, “anticipates”, “expects”,
“intends”, “may”, “will”, “plans”, “outlook” and other words
of similar meaning in connection with a discussion of future
THE SIX CAPITALS OF VALUE CREATION operating or financial performance. These are based on
Through this report, MSM hopes to give a comprehensive and various assumptions and are subject to a number of risks,
holistic overview of the matters that influence our ability to uncertainties and contingencies, many of which are beyond
create value, including market challenges, risk management, the control of MSM. Unanticipated events and actual future
strategies, governance, initiatives and key developments. events may differ materially from current expectations due to
new business opportunities, changes in priorities by the Group
MSM Group’s focus on value creation is driven by the and other factors.
economic value we deliver and the sustainability of the
communities that we serve. We relentlessly strategise on
the mobilisation of our Six Capitals to coordinate, educate,
support and collaborate with our stakeholders and monitor
value creation outcomes to enhance resiliency. These capitals, REPORTING INTEGRITY AND ASSURANCE
as identified by the IIRC, have served as essential guides to To uphold report quality and ensure that the information
help us achieve our strategic objectives. The capitals represent presented in this report is reliable, consistent and complete,
stores of value and each of them – Financial Capital, Natural this report has been reviewed by the Executive Committee.
Capital, Manufactured Capital, Intellectual Capital, Human The report has further been reviewed by the Audit Committee
Capital and Social & Relationship Capital – is important on and together with the Audited Financial Statements 2021,
how it impacts our business. MSM’s business strategies submitted to the Board for its final approval.
revolve around maximising positive outcomes within these
capitals, being mindful of the trade-offs between capitals, MSM’s Board of Directors and Senior Management,
and mitigating negative impacts. has approved the contents of this Annual Integrated
Report, guided by the requirements of the MCCG 2021,
By reporting according to the Six Capitals, our stakeholders Companies Act 2016, the Listing Requirements of Bursa
will be better informed and have a broader view of how the Malaysia and Sustainability Guidelines.
business strives to create net positive value. This approach
also allows for more concise understanding of our value The financial report and statements have been audited
creation over time. by MSM’s appointed external auditors, PricewaterhouseCoopers
PLT (PwC) and is approved free of qualifications.
Our value creation Business Model that shows the The Board acknowledges responsibility for ensuring the
inter-relatedness and dependencies between our Capitals integrity recommendations of the Annual Integrated Report,
and other factors that drive our value creation journey is following recommendation by the Audit, Governance and Risk
disclosed on pages 94 to 95. Committee, responsible for oversight of the annual integrated
report. The external auditors have also provided a limited
assurance review on our Statement on Risk Management and
Internal Control (SORMIC).