MSM might see a turnaround in 2020

Malaysia’s major refined sugar producer, MSM Malaysia Holdings Bhd has successfully secured 200,000 tonnes of sugar products for exports, edging closer to its target of shipping 350,000 tonnes abroad this year.
This target translates into nearly RM600 million (US$140.8 million) in revenue, said MSM group CEO Datuk Khairil Anuar Aziz. He said MSM is bullish about turning around this year, fuelled by steady improvement in the sugar price and the commercialisation of its refinery in Johor.
The refinery under MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor) is a focal point of MSM’s overall transformation strategy. The strategy, which kicked off in the 2nd half of 2019, involves an aggressive product diversification into premix, liquid sugar and fine syrup to cater to industrial demand in Asia. “The product diversification into the non-refined sugar segment includes value-added sugar products and the anticipated new, healthier variants in the 2nd quarter of financial year 2020,” said Khairil Anuar. Khairil added that this diversification is expected to bolster MSM earnings and increase its capacity utilisation in MSM Johor.
As of end May 2020, MSM had exported more than 73,000 tonnes of refined, liquid sugar and fine syrup with an estimated revenue of RM157 million (US$36.8 million). MSM Johor has reached a 34?pacity utilisation rate since its commercialisation in April last year. This is expected to increase with the growth of domestic and export demand as well as the group’s plan to consolidate its production capacity, said Khairil Anuar.
MSM has also been working closely with parent FGV Holdings Bhd to maximise its assets in Chuping, Perlis. This involves the development of a new agriculture growth area called the FGV Agro Food Valley, which is expected to contribute to the national food agro sector and enhance business and employment opportunities.
MSM continues to redefine opportunities in order to mitigate the impact from overcapacity in the refined sugar industry. The focus on diversification includes possible collaborations with reputable food and beverage players and downstream product development, such as flavoured syrup and condensed milk. MSM is also seeking to expand into the Middle East and North Africa.