MSM Malaysia Holdings Berhad Annual Report 2019

ECONOMIC SUSTAINABILITY MSM PERLIS MSM PRAI MSM LOGISTICS MSM HOLDINGS MSM JOHOR Plantation 36 employees Factory 356 employees 495 employees 49 employees 52 employees 261 employees GRI-204: Procurement Practices Taking an active part to elevate good governance within the industry, MSM is committed to ethical supplier management practices and has put in place policies, processes and systems to safeguard ethical, open and sustainable sourcing within our supply, manufacturing and distribution value chain. All employees are required to adhere to the company’s procurement process and policy which are set out in the Group Procurement and Policies Handbook which is printed and distributed to staff. The online version is also made available and can be requested from the Procurement Department. These ensure accountability and transparency in procurement activities as well as governs vendors and suppliers to abide by ethical standards, fair business practices and comply with laws and policies. Total of Malaysian Registered Companies (%) Local Procurement Expenses (RM) 2017 2018 2019 2017 2018 2019 95.8 96.1 96.7 256.1 mil 1.2 bil 294.4 mil GRI-203: Indirect Economic Impacts Established to ensure Malaysia’s self-sustainability in refined sugar, MSM has also been a catalyst for socio economic development within Perlis, Penang, the Klang Valley, and most recently Johor. The Group’s steadfast expansion into activities throughout the sugar value chain provides employment opportunities as well as opportunities for secondary industries. Today, MSM provides job opportunities for 1,249 employees within the Group. The reduction in number of employees for plantation sector in MSM Perlis is due to operations ceasing following the disposal exercise of its plantation land in Q3 2019. (data shown as at 31 st December 2019) 49 SUSTAINABILITY REPORT 05