KUALA LUMPUR: MSM Malaysia Holdings Bhd, the country’s leading refined sugar producer and a subsidiary of FGV Holdings Bhd, has started its first break bulk shipping of refined sugar, exporting 7,000 tonnes from Johor to China.
MSM fully commissioned its plant in Tanjung Langsat, Johor last November, providing an avenue for the group to support domestic and ramp up export sales.
“Break bulk shipping reduce the cost of our logistic as it requires cargoes to be transported in unitised form such as crated, bundled, or palletised to which our refined sugars are carried in a 1.5 tonnes jumbo bag that ease the process of loading.
“Besides that, break bulk shipping also allow goods to directly enter minimally-developed ports as some of them cannot accommodate large container ships,” MSM said in a statement today.
The break bulk operations through Tanjung Langsat Port’s jetty involves cooperation between MSM Johor and FGV Transport Services Sdn Bhd, also a subsidiary of FGV, to synergise the group resources effectively, it added.
MSM is targeting to export more than 300,000 tonnes of refined sugar and other sugar related products potentially to Asia Pacific region under its Business Plan 2019-2021.
The blueprint includes exporting to Asian market as part of the group’s priorities to maintain market leadership towards becoming one of the top 10 sugar players in the world by 2020.
MSM said it, however, would continue to be selective on export markets with a focus on high premium markets due to the challenging prices as a result of global sugar glut.
“The break bulk shipping is a part of our new business model which focus on maintaining cost discipline and operational efficiency in our business activities which include raw sugar procurement, external warehouse as well as cost for freight, refining and finance,” newly-appointed MSM group chief executive officer Datuk Khairil Anuar Aziz said.
“The advantage of our strategic standalone refinery in Johor together with the break bulk shipping initiative will provide an opportunity for us to export our refined sugar at a very competitive price,” he added.
Khairil, who has been with MSM since November 2017 as executive director, has taken over the responsibility from Mohd Shaffie Said who assumed the role of acting CEO since January 2018.
Effective immediately, Mohd Shaffie has now been re-designate as group chief operating officer.
Khairil was born and bred in Felda Sungai Klah, Sungkai, Perak and is a second generation Felda settler.
He is also currently FGV chief operating officer for sugar sector.