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

            IN CONVERSATION WITH OUR

            GROUP CHIEF EXECUTIVE OFFICER










                       What are your plans towards boosting                        Key Strategic Initiatives of
                  Q
               A                                                                   MSM BP23
                       productivity, especially at MSM Johor?
            Towards boosting productivity, we are ready to do things differently - operationally   Sustainable
            and structurally. We have reassigned roles to optimise on talents and abilities.     Manufacturing
            We are ensuring management support in understanding and helping mitigate         Performance
            barriers and problems while providing enablers with effective tools and resources.

            Key Performance Indicators (KPIs) have been aligned towards productivity,
            so that exemplary actions and practices will be rewarded. We are implementing    Improving Sales
            short cycle time including Lean Six Sigma (LSS) support. These are some of the   Performance
            impactful methods employed to ensure MSM Johor registers profitability by
            FY2022.
                                                                                             Growing a
                       What are MSM’s strategic intents                                      Sustainable
                  Q
               A                                                                             Operation with
                       moving ahead?
                                                                                             Better Energy
            We intend to enhance turnaround, stay resilient and unlock our higher potential   Planning and Green
            by staying agile and proactive. We will be operating within an environment of    Energy
            transitory inflation with rising costs of NY11 raw sugar, gas energy, freight and
            Foreign Exchange (FOREX) to contend with.
                                                                                             Cost Savings on
            For each we have responsive risk management solutions as detailed in our
            Corporate Strategy and Business Plan Review.  These range from hedging,          Sales & Distribution
            intense management monitoring, to growing an eco-system of US dollars as a
            natural hedge and other new instruments in ensuring mitigation.
            On the  business front,  we are  enhancing opportunities, not  just by
            optimising volumes but also by focusing on higher margin segments such as        Strategic Capital
            value added products (VAP). Research and development on  VAP and health          Management
            segment products will be stepped up to leverage on new opportunities.
            Diversification into a new food-business segment, as per our stated vision, is also
            in the cards.
                                                                                             Expand Export via
            At the global front, the manufacturing sector is reimagining the future of       Strategic Partnership
            manufacturing where conventional models are making way for greater technology
            adoption  and the  key  determinants  are efficiency, speed  and flexibility towards
            sustaining competitiveness. The Industrial Revolution 4.0 (IR4.0) entails infusing
            higher value added process of manufacturing through the application of           Digital
            advanced digitisation, innovative manufacturing technologies  and efficient      Transformation
            resource utilisation.                                                            towards Industry 4.0

            As we extend our business ecosystem in widening the sugar universe in market
            regions, products and customers, we have to fully exploit the continental shift
            in global trade where these borderless transactions and ESG concerns are    Details  can be referred to in  the
            pivotal. MSM Group is in step with Industry4WRD, the National Policy on     Corporate Strategy and Business
            IR4.0, which would enable the manufacturing sector to move into IR4.0       Plan Review on page 70
            and along the way contribute to fulfilling Malaysia’s commitment to the
            United Nation’s Sustainable Development Goals (UN SDGs).
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