MSM Malaysia Holdings Berhad Annual Report 2020

Through it all, MSM’s management devoted time in planning the Group’s next strategic blueprint that was approved by the Board on 14 December 2020. Titled BP21, this blueprint lays down corporate targets and goals for 2021 to 2025 and centres around continued optimisation of assets potential; strengthening domestic market share while expanding abroad, and improving MSM’s capital structure and gearing. COMMITMENTTO STAKEHOLDERS For FY2020, we have posted a total revenue of RM2.18 billion from 1.06 million tonnes of sales volume, generating a Loss After Tax (LAT) of RM71.23 million. Upon adjusting back impairments, we recorded an operational profit of RM6.29 million for the same period. Due to the LAT performance, MSM’s Board has not declared any dividends for 2020. Our main priority in improving returns for our shareholders is to continue pursuing opportunities that will improve the utilisation of MSM Johor. To this end we have completed the establishment of MSM’s liquid sugar and fine syrup facility in readiness to penetrate new markets. By unlocking further operational capabilities, MSM will be able to grow on aggressive export sales of refined sugar, liquid sugar and fine syrup to regional countries. This, on top of the existing domestic performance, would translate into higher revenue and profit for the Group and ultimately better returns to shareholders. MSM’s Group Sustainability Policy also continues to facilitate the achievement of MSM Group’s commitment to conduct business responsibly through the integration of Economic, Environmental, and Social (EES) considerations throughout our business process. Despite the COVID-19 pandemic, MSM maintained its production momentum and secured sufficient supply of sugar to the nation. The Group also maintained its zakat contribution of more than RM1 million during the year and continued to fulfil our community obligations. During the year, MSM has also ensured continual training and development even amidst the pandemic by introducing e-Learning modules as a new channel for transmitting and sharing knowledge with our employees, and another avenue in training. A continual learning series was initiated in 2020 whereby several phases of trainings are conducted in building the capabilities of our employees. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 5 SUSTAINABILITY REPORT EFFECTIVE LEADERSHIP CORPORATE GOVERNANCE FINANCIAL STATEMENTS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING