MSM Malaysia Holdings Berhad Annual Report 2019

LINKING THE CAPITALS & MATERIAL MATTERS TO STRATEGY, SUSTAINABILITY & RISKS STRATEGICTHRUST IMPACTED CAPITALS MATERIAL MATTERS KEY RISKS Strengthen Core Operations Rallying our call to focus on growing the core business and utilising our key assets efficiently for a sustainable future. Manufactured Capital Intellectual Capital Natural Capital • Operational Performance • Occupational Safety and Health (OSH) Performance • Excess refinery capacity • Increase tariff rate of energy and utilities Strong Financial Management To ensure our financial engine grows sustainably against a volatile environment through prudent cost management and value enhancing investment benefitting shareholders and stakeholders. Financial Capital Manufactured Capital • Macroeconomic Conditions • Financial Management • Poor cash reserves • Volatility in foreign exchange (FOREX) • Unfavourable raw sugar price movement Solidify Good Governance and Risk Exposure Together, good governance and risk management will form the bedrock in realising our business discipline in sustaining its positive momentum. Intellectual Capital Social & Relationship Capital • Macroeconomic Conditions • Managing Regulators • Issues of Approved Permits (AP) and market liberalisation Improve SustainableValues We infuse our thoughts and actions towards achieving excellence in sustainability by integrating sustainable practices in line with the Group’s vision, core values and SDGs. Social & Relationship Capital Human Capital • Social and Environmental Empowerment • Talent Development • Manpower turnover • Competency of production staff MSM Malaysia Holdings Berhad | Annual Report 2019 12