MSM Malaysia Holdings Berhad Annual Report 2019

MITIGATING MEASURES 2019 PRIORITIES OUTCOMES PAGE REFERENCES • Management to revise and improve marketing plan and strategy • Increase sales activities • Aggressively seek to penetrate new markets/ segmentation/product • Minimise the unit energy cost of production by operating our factories at maximum production rate • Apply alternative energy efficiency such as biomass as new criteria in the selection of new equipment and processes when replacing machinery or adding new capacity • Expand production of value- added products e.g. Liquid Sugar and Premix for export • Increase production yield and utilisation by producing value added sugar products • Move from Gas to Biomass Boiler • Reduce fuel cost up to 50% upon successful commissioning of Biomass Project in Dec 2021 Refer to pages 4, 9 ,14, 21-24, 34-35, 37 • Enter into new business ventures • Increase production volume and reduce refining cost • Increase sales price • Continuous monitoring on the strength of USD against Ringgit • Tenure to hedge is on quarterly basis with mandate obtained from Management • Continuous monitoring of the world sugar price • Purchase at desirable and achievable profit target • Monetise non-core asset (plantation land) to assist in paring down debts • Procure raw sugar and hedge FOREX as per the Group’s policy allowable time frame • Restructure borrowings with the lenders to provide breather to the Group’s cash flow • Engagement with fund managers and also with the institutional shareholders to clarify position and explain the moving forward strategies Refer to pages 5, 9, 23-25, 32, 40 • Provide assurance that there is optimum capacity of sugar stock for domestic market • Management has discussed with The Ministry of Domestic Trade & Consumer Affairs (KPDNHEP) on the effect of market liberalisation • Management to continuously create good rapport with local authorities • Continuous engagement with the government and relevant ministries to discuss issues related to the sugar industry e.g. sugar AP Refer to pages 4, 21, 28, 50 • To create a more conducive working environment • Offer better packages based on performance and productivity of refinery • Create opportunity for knowledge and experience development • Provide basic sugar process training • To engage well experienced staff from similar industries • Create Training Needs Analysis (TNA) • Continue with Graduate Management Trainee initiative • Focus on training and development initiative to strengthen core competencies Refer to page 57 13 DELIVERING VALUE 01