GROUP BUSINESS REVIEW MAINTAINING MARKET LEADERSHIP It was a challenging year for production at MSM Johor as the plant was closed for urgent rectification works for 65 days from 31 March 2021 to 4 June 2021. MSM Johor took the opportunity during this shutdown period to conduct its total plant shutdown maintenance and extensive production and reliability improvement programme. The Group also took the opportunity to revamp the plant’s maintenance team and ensure critical parts and equipment were made available during this time. Asset transfers from MSM Perlis to MSM Johor were completed on schedule, allowing the plant to now consolidate all available resources as it targets to optimise production in the coming year. Over in Penang, MSM Prai plant had a shut down from 8 to 15 June to prevent internal transmission of the COVID-19 virus due to detection of cases affecting MSM Prai employees. The shutdown period was actually shorter than the initial instruction given by the Malaysian Ministry of Health as MSM Prai’s SOP records proved that the cases were from the community and management quickly responded by implementing stricter SOP and mitigation plans. These proactive steps were implemented at all operational locations to avoid business disruption and ensure supply of sugar to consumers was not interrupted. Nevertheless, during these two periods, MSM managed to fulfil demand by increasing production in MSM Prai and importing refined sugar. Throughout the year, all prevailing quality certifications were maintained and efforts to migrate MSM Prai from OHSAS 18001 to ISO 45001 were successfully completed. STRIVE FOR CONTINUOUS GROWTH In striving for continuous growth, MSM Johor’s production capability in Liquid Sugar and Flavoured Syrups was completed as part of the momentum to step up creation of value added products and optimise on the plant’s capacity and capability. MSM has been producing premix, liquid sugar and fine syrup products for exports to China, and is scouting opportunities in other export markets such as Vietnam, Singapore, Philippines and Indonesia. Liquid sugar production capacity has increased from 200 MT/day to 400 MT/day while the flavoured syrup capacity is targeted to grow to 2 MT/day. Several variations of flavoured syrups are being studied. For overall improved performance, efforts were undertaken to identify key optimisation issues for MSM Johor and a few action plans have been established to help ramp up and improve the plant’s UF. A Task Team has been formed for the areas of Ramp Up, Improve Yield and Robust Data recording; and a third party has been engaged for technical consultation on the refinery’s overall process optimisation. Moving forward, MSM is exploring to utilise an external distribution centre to overcome operation interruptions due to warehouse space limitation. Upgrading work on the receiving facility at Sungai Buloh Warehouse (SBW) is also currently in progress in order to improve train turnaround time from and to MSM Prai refinery. ProductionVolume (tonnes) 895,222 1,010,215 1,073,888 Raw Melted (tonnes) 933,274 1,061,158 1,101,708 Capacity Utilisation 44% 47% 48% 2020 2019 2021 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 82
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