GROUP BUSINESS REVIEW MAINTAINING MARKET LEADERSHIP Though competition continued to abound in the market throughout FY2021, MSM made strides to regain domestic market share by reaching out to customers and strengthening engagements to serve them better. This has led to MSM still maintaining market leadership in the domestic sugar industry market. According to the Asia Brand Footprint 2020 report by Kantar, a leading data insights company, Gula Prai ranked third in the Top 10 most chosen FMCG brands. The brand also recorded a 70.9% market penetration with the second highest consumer choice at 7.4. Recognising the need to re-establish brand awareness among Malaysians, MSM launched the “Janji...Gula Peket Hijau” campaign as part of marketing strategy for FY2021. The campaign included advertisements through various media channels such as TV, radio and in-store coordination with retailers to place our marketing collaterals in their respective outlets. The campaign celebrates diversity in Malaysia and the strong ties shared through Gula Prai’s iconic packaging that spans generations. We plan to continue with this marketing strategy in FY2022, and more campaigns will be launched to further increase brand visibility. A new service strategy for the Modern Trade segment was also developed in which Trade retailers were engaged with directly. This direct engagement allows MSM to quickly address any issues that arise on the retailing front and have direct access to all the hypermarkets for better oversight in ensuring product availability and visibility. Moving forward as a market leader, MSM aims to aggressively increase our presence in the Hotel, Restaurant and Catering (HoReCa) sector of the food service industry which comprises establishments that prepare food and beverages. At the same time, efforts will be focused on aggressively penetrating the Modern Trade segment and increasing market share in East Malaysia. Despite the challenges of the pandemic that presented many roadblocks in FY2021, the Group’s domestic wholesale segment and refined sugar export recorded growth over 11% and 5% respectively for FY2021. Furthermore, the export premium increased in FY2021. STRIVING FOR CONTINUOUS GROWTH The Group is focusing on developing our product sales domestically instead of overly relying on exports to China. This reduces single-country export risk and allows for more domestic premium gains. MSM plans to increase supply to domestic buyers as demand increases for value added products (VAP). While maintaining resilience in the domestic market, opportunities in Southeast Asian countries such as Vietnam, Singapore, Philippines and Indonesia are being scouted. This has proven challenging as it means facing changes in socio-political policies such as Vietnam’s recent restriction on the importation of sugar. However, the long-term benefits still spur our steadfast commitment to this strategy and MSM has been engaging with several customers from Indonesia and Philippines to get them onboard as potential VAP customers. Sales Volume (tonnes) 941,749 1,024,603 947,290 Revenue (RM) 2.3 billion 2.2 billion 2.0 billion Debt Collection 43 days 38 days 50 days 2020 2019 2021 WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 86
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