There are opportunities to leverage on this front. With signs of global food inflation emerging, MSM’s prices remain comparably low in the global market when it comes to sugar, and thus prices of our products will be comparatively lower and more attractive than our competitors. The necessary expansion works to increase MSM Johor’s production capacity for previously identified VAP have been initiated. The physical expansion of the premix line has been completed and all that is pending is the last stage of acquiring the necessary certifications and qualifications before production can commence. The plant is also ready to produce fine syrup to meet customer demand. Expansion of liquid sugar production is ongoing, with an estimated completion of second boiler works by April 2022. ACHIEVING OPERATIONAL EXCELLENCE MSM has secured major Industrial contracts as part of our strategy to maintain optimum operational efficiency within the Group’s capacity. Several emerging lifestyle trends such as decrease in demand for foods and beverages that contain high carbohydrates and sugar, and increased demand for lactose-free dairy and sugar substitute products are evident in the Department’s analysis of upcoming trends and threats. This has spurred the Group’s venture into VAP and exploration of opportunities in new Stock Keeping Units (SKUs). SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 87
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