MSM Malaysia Holdings Berhad Annual Report 2020

ECONOMIC SUSTAINABILITY MSM PERLIS MSM PRAI MSM LOGISTICS MSM HOLDINGS MSM JOHOR 8 employees 67 employees 536 employees (including staff from refinery, warehouse & HQ) 49 employees 66 employees 323 employees Plantation Factory (data shown as at 31 st December 2019) GRI-203: Indirect Economic Impacts Currently, MSM provides job opportunities for 1,049 employees within the Group. We employ a diverse workforce from different backgrounds and professional expertise in operations and business support In 2020, the number of employees reduced due to the cessation of operation in MSM Perlis, following the Group’s rationalisation plan of relocating the Group’s refining operations in MSM Perlis to the new refinery in Johor. The exercise involved redeployment of manpower and resources, and priority was placed on ensuring that qualified employees from Perlis were offered first choice opportunities to relocate to the Group’s facilities in Prai, Penang, Sungai Buloh, Selangor and Tanjung Langsat, Johor. GRI-204: Procurement Practices MSM continues to ensure its ethical procurement practices whilst giving fair opportunity throughout its value chain by: • Ensuring timely, efficient and impartial corporate procurement functions to obtain the required items at reasonable and competitive prices with attention given to merit, quality and other relevant factors. • Providing guidelines and strategies on ethical buying with mandated justification to assure transparency and optimise on profitability. • Committing to transparent and visible procurement activities within MSM Group. • Obtaining the best in class and fair value for money for every item and service procured thus ensuring equitable returns to MSM Group. Since our establishment in 1964, MSM has contributed towards national socio-economic development. The Group’s steadfast expansion into activities throughout the sugar value chain provides employment opportunities, expands business possibilities for local vendors as well as supports the development of secondary industries. MSM has also taken responsibility of shaping a progressive and sustainable economic landscape by strongly committing to ethical business practices, adhering to good governance, ensuring accountability and transparency in procurement activities, and complying with relevant laws and policies. Total of Malaysian Registered Companies (%) Local Procurement Expenses (RM) 98.0 96.7 96.1 2018 2019 2020 253.7 mil 294.4 mil 1.2 bil 2018 2019 2020 A small percentage of the employees were retained at MSM Perlis to assist in completing the paperwork for remaining assets transfer exercise. SUSTAINABILITY REPORT CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 54