MSM Malaysia Holdings Berhad Annual Report 2019

A key element of our integrated report is our business model which explains how we leverage our six capitals (as categorised by the IIRC) to create value for our stakeholders. Our six identified capitals are the various relationships and resources we depend on in order to develop, deliver and sustain growth of our business. Our business strategies revolve around maximising positive outcomes within these capitals, being mindful of the trade-offs between capitals, and mitigating negative impacts. Scan this QR code to view the MSM Annual Report 2019 microsite Raw sugar and fuel are the natural capitals of our industry. We depend on reliable access to these to maintain smooth operations. Price of raw sugar has a great impact on our profit margin as we have no direct control on pricing. We build trusted relationships with raw sugar suppliers and exercise hedging strategies to optimise on better deals. We are mindful of our impact to the environment and are committed towards conducting business in an environmentally responsible and sustainable manner. We are guided by Environmental Management System by which we continue to record improvements in waste and greenhouse gases emissions as well as water and energy consumption through our investments in green technologies within our Penang and Johor plants. We were established to ensure national self-sufficiency in sugar, and have since become the flagbearers of Malaysia’s sugar industry. As such, our social and relationship capital are the relationships of trust we build with our stakeholders – our employees, customers, suppliers, investors, communities, regulators, the government, industry partners and the media. We contribute to national and community development through the payment of taxes and zakat, as well as create employment opportunities by maintaining profitable operations. Our skilled employees and experienced management team are our greatest assets.We have 1,249 employees which are considered skilled industry experts who provide us a competitive edge in helping us maintain market leadership. Via training and skill enhancement initiatives such as Staff Mobility Programme, we seek to maintain a good quality talent pool within the Group. We produce the highest quality sugar with assured certifications. We also ensure availability of refined sugar through effective stock management. With our recent opening of the MSM Sugar Refinery (Johor) Sdn Bhd plant, we have increased production capacity to 2.25 million tonnes per annum with potential to deliver up to 1.25 million tonnes of refined sugar. Our financial capital enables us to provide salaries for our employees, dividends for our shareholders and investment in communities while driving sustainable growth through reinvestments to maintain and grow our business. Our investors’ funds are wisely invested to increase our operational efficiency as well as to initialise operations in our plants. Our strong brand, expertise, capabilities and established technologies steer our business success. We have over 50 years of industry expertise and our Gula Prai brand currently ranks as the No. 1 selling sugar brand in Malaysia. These have ensured our domestic market share dominance of 61%. Our production is anchored on quality certified management processes and systems. MANUFACTURED CAPITAL FINANCIAL CAPITAL NATURAL CAPITAL INTELLECTUAL CAPITAL SOCIAL & RELATIONSHIP CAPITAL HUMAN CAPITAL OUR 6 CAPITALS 1 4 2 5 3 6