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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 73

KEY STRATEGIC INITIATIVES 2022

Seven KSIs have been identified to strive for resilience by (1) optimising our assets potential, (2) strengthening domestic position
with intensified regional presence and (3) improving capital structures.

Sustainable Manufacturing Performance 1 Sales & Distribution Cost Savings 4
• Target to optimise production reducing Refining • Optimisation of internal assets of MSM Logistics
rd
Cost per MT within Klang Valley, 3 Party Logistics for outside
• Operational improvements supported by regions
experienced advisors • Warehouse expansion and optimise demand and
• Improve Process Reliability and Production supply planning
Availability • Smart Fleet Management to optimise
management, route planning, productivity

Improving Sales Performance 2
• Focus on growing the VAP segment with higher Strategic Capital Management 5
selling price and premium • Optimum mix of short-term and long-term
• Grow Merchandising Unit, smaller packing to borrowings
expand retail presence • Increase USD borrowings for natural hedge in
line with growing USD receivables from export

Growing a Sustainable Operation with 3
Better Energy Planning and Green Energy Export via Strategic Partnership 6
• Implement green energy cost saving and • Explore strategic partnership to strengthen
reducing GHG emissions from electricity export segment and further unlock synergistic
purchased by 10% via solar
• Energy auditing, planning and optimisation to value
reduce carbon footprint and energy cost
• Explore selling by-products i.e mudcake and
calcium carbonate as fertilisers and molasses as
a value added product
Digital Transformation via Industry 4.0 7
• Digital system is to enhance productivity and
accelerate business processes
• Improving data visualisation and analytics for
better decision making
• Implementing IR4.0 smart systems
manufacturing, sales, logistics etc
Financial Capital Natural Capital

Manufactured Capital Human Capital

Intellectual Capital Social & Relationship Capital