Link to Strategy Impacts • Compliance with laws and regulations • Management of procurement policies and practices • Management of Anti-Corruption policies and procedures • Management of governance policies and issues • Management of anti-competitive behaviour and monopoly practices • Responsible sourcing practices Impacts • Exposure towards fluctuations in commodity and raw sugar price • Trading risks involved in futures market • Adverse forex movements • Raw sugar price influenced by global climate, economy and political factors • Legal and regulatory changes • Trade wars and protectionist policies • Health pandemic & climate change Our Response • Active engagement, dialogue and briefings with MSM employees • Enhance business framework to adapt to regulatory requirements • Adopt and update relevant policies • Improve governance, compliance and transparency framework • Put in place adequate procedures such as Anti-Bribery Policy Statement and Whistleblowing Policy at MSM website in compliance with 15.29 (1), and (2) of Main Market Listing Requirements (Listing Requirements) guided by the Guidelines on Adequate Procedures, section 17A (5) of the Malaysian Anti-Corruption Commission (MACC) Act 2009 (Amendment Act 2018) • 100% Signing of Integrity Pledge Our Response • Constantly monitor the world sugar price at NY11, back-to-back hedging for industry and export sales and hedging lower than the budgeted for wholesale market • Implementation of Just-In-Time mechanism to reduce working capital requirements, as well as having arrangements with suppliers to ensure sustainable supply of raw sugar is secured • Improve margins by increasing Average Selling Price to industry • Continuous engagement with the government and relevant ministries such as Ministry of Domestic Trade & Consumer Affairs (KPDNHEP), and Ministry of International Trade & Industry (MITI) to collaborate on APs, compliance, smuggling, safety and environmental matters • Close monitoring of industry and regulatory developments worldwide • In normal operation activities and in reaction to the COVID-19 pandemic, our Business Continuity Management plan sets strategies to actively increase corporate resilience. The objective is clear: to prevent suspension of operations or services Governance Macroeconomic conditions Increase Growth in Domestic Volume Growth in Value Added Segment Sales Strategic Capital Management Export via Strategic Partnership Monetise Non-core Asset S3 S4 S5 S6 S7 Link to Strategy S5 S2 S6 S3 S4 Improve MSM Johor’s Production Capability, Yield and Refining Cost Improve Sales & Distribution through Territory Consolidation and Area Demarcation S1 S2 • MSM’s Sustainability Initiatives on Social: Economic Impact and Governance SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 99
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