Page 77 - MSM_AIR2021

SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 75

Description/Impact Mitigation Measures Link to Stakeholders
Capital Impacted

MSM Johor Performance
• Average UF rate for MSM • Ramping up of MSM Johor after debottlenecking of
Johor was lower due to processes
temporary shutdown in • Improve domestic sales in line with export sales
FY2021. Running at lower • Leverage on value added products
UF resulted in higher cost
of production • Install a new boiler to enhance production reliability
and availability

Malaysian Domestic Regulations

• The domestic Wholesale • As the raw material and cost are bullish, Management

refined sugar price has continues to engage KPDNHEP to review current ceiling
been capped at RM2.69/kg price for 1kg and 2kg retail packs
for sugar manufacturers • MSM has seen growth in industrial volume despite the
• Sugar Tax to further include new Sugar Tax introduction in FY2019
premix beverages

The Pandemic
• Threats of new variant • Progress and efficacy of vaccinations, SOP compliance
“Omicron” and effective containment of new COVID-19 variant
• Potential new outbreaks outbreaks will be key to recovery
which could lead to
operational disruptions

Stakeholders Impacted

Consumers & Customers Shareholders & Vendors, Suppliers &
Investment Community Industry Partners
Regulatory Agencies & Media, NGOs &
Employees
Statutory Bodies Communities