MSM Malaysia Holdings Berhad Annual Report 2021

There were issues with MSM Johor’sWWTP in FY2021 which resulted in high effluent discharge in the first half of the year. The problem was addressed and figures for MSM Johor’s effluent discharge normalised in the second half of the year. We will aim to track our effluent data closely from FY2022 onwards to enable us to monitor and measure our effluent discharge more accurately. Energy Optimisation Energy is a core resource for MSM’s operations. MSM Johor, MSM Prai (and where applicable in SBW) rely on diesel, natural gas, purchased electricity and steam as energy sources. In addition, MSM Johor and MSM Prai also generate their own electricity via the steam turbine generator as part of MSM’s commitment under its Group Sustainability and Environmental Policies to reduce impact of fossil-fuel based energy and improve energy efficiency. The back-pressure turbines installed in our refineries generate approximately half of our energy requirements, in particular in MSM Johor, by channeling exhaust steam back to the heating process. We also recycle our process condensate for boiler steam generation and employ an innovative system Note: Data is available for only msm prai and msm johor. Total Effluent Discharge (m3) for FY2021 1,580,162. that combines functionalities of our Mechanical Vapour ReCompressor (MVR) evaporator and Vertical Crystallisation Tower (VKT) to dramatically reduce the amount of steam required during the sugar-boiling processes. Where necessary, we use clean natural gas as an energy source at both refineries. It is important for MSM to maximise energy efficiencies for long-term sustainability. Initiatives towards reducing energy in our operations are being implemented progressively for instance, switching to energy efficient LED lighting at the warehouses, using of inverters in the pumps and continued strive for energy efficiency. For purchased electricity, we monitor cost savings, if any, based on monthly electricity bills. For MSM Logistics, a GPS tool tracking system to monitor fuel consumption is being considered for FY2022. There are also discussions to consider biogas as an alternative green energy. Once we have clearer long-term goals set and measures in place, we will provide more detailed disclosures in our FY2022 report. SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 137

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