Chemical Company of Malaysia Berhad Annual Report 2019

Dear Shareholders, On behalf of the Board of Directors of Chemical Company of Malaysia Berhad (CCM or the Group), it is my privilege to present our Annual Report for the financial year ended 31 December 2019 (FY 2019). REMAINING RESILIENT IN THE FACE OF ADVERSITY I am pleased to report that despite being weighed down by sluggish economic conditions, a down cycle in the commodity chemicals market and several unexpected events that hampered our operational plans, the Group demonstrated its resilience, achieved a host of milestones and recorded a modest profit, when compared to FY 2018. Despite the setbacks faced, the numerous milestones achieved have placed us in a position of strength from which we are ready to capitalise on when the commodity chemicals market recovers. The milestones that we have achieved in FY 2019 include the commissioning of the Calcium Nitrate plant in Shah Alam, the reactivation of our Pasir Gudang Works 1 (PGW1), the setting up for a brand new laboratory for Polymers research and development and securing the contract from Petroliam Nasional Berhad (PETRONAS) for the supply of caustic soda to the Refinery and Petrochemical Integrated Development (RAPID) site in Johor. The details of these projects are further explained in this statement. | CHAIRMAN’S STATEMENT | 10 CHEMICAL COMPANY OF MALAYSIA BERHAD