Description/Impact Mitigation Measures Link to Capital Stakeholders Impacted MSM Johor Performance • Average UF rate for MSM Johor was lower due to temporary shutdown in FY2021. Running at lower UF resulted in higher cost of production • Ramping up of MSM Johor after debottlenecking of processes • Improve domestic sales in line with export sales • Leverage on value added products • Install a new boiler to enhance production reliability and availability Malaysian Domestic Regulations • The domestic Wholesale refined sugar price has been capped at RM2.69/kg for sugar manufacturers • Sugar Tax to further include premix beverages • As the raw material and cost are bullish, Management continues to engage KPDNHEP to review current ceiling price for 1kg and 2kg retail packs • MSM has seen growth in industrial volume despite the new Sugar Tax introduction in FY2019 The Pandemic • Threats of new variant “Omicron” • Potential new outbreaks which could lead to operational disruptions • Progress and efficacy of vaccinations, SOP compliance and effective containment of new COVID-19 variant outbreaks will be key to recovery Consumers & Customers Vendors, Suppliers & Industry Partners Employees Media, NGOs & Communities Regulatory Agencies & Statutory Bodies Shareholders & Investment Community Stakeholders Impacted SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 75
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