MSM Malaysia Holdings Berhad Annual Report 2020

BUSINESS REVIEW OPERATIONAL & REFINING “Production volume year-on-year fell 6% in FY2020. In June 2020, MSM Perlis ceased its refining activities after being in operations since 1971. This reduction in capacity is expected to be filled by the newer MSM Johor refinery. However, disruption in local demands and challenges in international deliveries following movement and travel restrictions put in place to curb the spread of COVID-19 for the most part of 2020 have resulted in lower than planned production output across MSM Group. Performance 2020 2019 Production Volume (tonnes) 1,010,215 1,073,888 Raw Melted (tonnes) 1,061,158 1,101,708 Capacity Utilisation (%) 47 48 Cost Saving Initiatives (RM million) 1.8 9.3 Customer Complaint Rate (%) 0.18 0.08 2021 PRIORITIES: I mprove Utilisation Factor (UF),Yield and Refining Cost of MSM Johor C omplete planned asset transfers from MSM Perlis to MSM Johor E nsure scheduled maintenance, certifications and plant upgrades for higher plant reliability and efficiency M aintain good rapport between management and union members through collective bargaining with Union in June 2021 Migrate MSM Prai from OHSAS 18001 to ISO 45001 E xpand MSM Johor’s production capabilities in Liquid Sugar and Flavoured Syrups MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 38 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT