MSM Malaysia Holdings Berhad Annual Report 2020

BUSINESS REVIEW On the business front there were small wins within a challenging environment. These included achievement of higher UF of 87% for the last three months of 2020 and reduction of contract manpower for MSM Prai. Meanwhile, MSM Johor recorded UF of 27%. Moving forward, MSM is focused on continuing to identify green energy alternatives and better waste management towards increasing sustainability and enabling cost savings. The Group’s safety report is bittersweet. There was a 26% reduction of accident cases in 2020, but this was marred by an unfortunate fatality case reported in MSM Prai in January 2020. Management ensured immediate safeguards and heightened awareness was established site-wide following the incident. Detailed investigations was conducted in close collaboration with the FGV Group Safety, Health & Environment Department and the Department of Safety and Health Malaysia (DOSH). Compliance to DOSH, DOE and Fire Department regulatory requirements continue to be maintained with the completed reviewing of 183 HIRARC, submission of online report to DOE every three days during MCO and CMCO period without fail, and confirmation of Standard Operating Procedure (SOP) compliance weekly report to MITI. Putting our employees first remains a key priority going forward. MSM is committed to maintain industrial harmony by curbing grievances or disputes. To this end, a collective agreement was prepared on June 2021. UPDATE ON CEASED OPERATIONS MSM Perlis Sdn Bhd: MSM Perlis’s focus for 2020 was on ramping down processes, planning asset transfers and ensuring employee welfare prior to cessation of operations on 30 June 2020. MSM Perlis was the main provider for 1kg coarse grain sugar packs for East Malaysia. After the switch off, this production portion was handed over to MSM Prai, together with four units of packing machines. In 2021, the remaining nine machines of 1kg packing machines will be installed in MSM Johor. Employees were offered opportunities to pursue their career either at MSM Prai or MSM Johor. Some workers decided to take the path of retirement and some were still contributing as a temporary skeletal staff to monitor, maintain and take care of the transfer and sales of remaining company assets, land and facilities. Plantation: The entire plantation land under MSM Perlis, planted with rubber, oil palm and Harumanis mango, had ceased operations since 15 September 2019. The decision on the next use of the land is still ongoing, in line with recommendations to sell the land to interested parties. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 40 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT