MSM Malaysia Holdings Berhad Annual Report 2021

ACHIEVING OPERATIONAL EXCELLENCE Given the pandemic, a key priority for business continuity was to ensure the workplace remained safe for all workers. During the year, MSM experienced four COVID-19-related deaths among MSM Prai staff, all of which were traced to community cases. To further fortify workplace hygiene, the Group has escalated SOPs to include appointment of medical doctors and healthcare nurses for daily screening, daily RTK Antigen Swab Test for all suspected cases with symptoms and to close contacts, engagement of an external party to conduct sanitisation and disinfection to all the common areas in the factory three times per week without failure, and daily sanitisation by all departments. There was a 39% reduction of accident cases in FY2021, but this was marred by an unfortunate fatality of a contract worker in MSM Prai in March 2021. Management ensured immediate safeguards and heightened awareness was established site-wide following the incident. Detailed investigations were conducted and immediate corrective and prevention action plans have been implemented. Taking a note from the boiler rectification works needed at MSM Johor in FY2021, moving forward, MSM will conduct periodic inspections of the boilers and implement a revised steam generation system with purchase of new equipment to improve reliability, operability and maintenance. Operational focus will also continue to be directed towards optimising refining cost as per budget, standardising quality practice across MSM production units, and reducing customer complaints. Continuous efforts are made to reduce refining cost by increasing production volume and utilisation factor while increasing efficiency of inputs utilisation such as steam to melt ratio, electricity, water, labour and yield. For MSM Johor, a ramp up plan is in place to achieve better UF. These goals will be supported by the implementation of a Total Preventive Maintenance (TPM) Programme and technical consultations by Subject Matter Experts in the sugar refining industry. More information on our COVID-19 measures are detailed on page 172 of our Sustainability Report SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 83

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