MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor), a subsidiary of MSM Malaysia Holdings Bhd, has achieved a significant milestone by completing its second boiler change-out works. This initiative, aimed at ensuring sustainable refinery reliability and availability, grants MSM Johor the uninterrupted capacity to produce at its design production capacity of one million tonnes per annum.
MSM Johor has obtained all necessary approvals from relevant authorities and regulatory bodies, including the Department of Occupational Safety and Health Johor. As a result, the refinery's two boilers can legally operate without any restrictions. With the successful completion of the boiler rectification work, MSM Johor is poised to achieve a minimum utilization factor (UF) of 50 percent, driven by increased local market demand and expanding product varieties, including exports.
Syed Feizal Syed Mohammad, the CEO of MSM Group, emphasized that MSM Johor is committed to strengthening its operations sustainability. In line with this objective, the refinery is in the initial phase of procuring a third boiler. This planned improvement aims to further enhance the production utilization factor (UF) and align with MSM Johor's vision of becoming a world-class sugar refining center.
Syed Feizal highlighted the significant potential for export growth, particularly in the Asia-Pacific (APAC) region, where the market exceeds 4 million tonnes per year. MSM Johor holds a strategic advantage in the supply chain for both retail and industrial sectors. The company intends to increase its export footprint by 12-15 percent in the near term, capitalizing on the rising global demand for sugar driven by food security concerns.
Syed Feizal further emphasized that MSM has established itself as a leading national sugar refinery since 1964, playing a crucial role in ensuring Malaysia's food security. Looking ahead, MSM Johor aims to incorporate green energy initiatives by utilizing biomass from palm oil empty fruit bunches and developing value-added products.
In terms of raw sugar security, MSM is exploring opportunities to support upstream cultivation of sugar cane through offtake agreements with a multitude of smallholders. This large-scale initiative aims to improve socio-economic outcomes while bolstering the company's raw sugar supply chain. However, plans for this initiative are still in the early exploration phase.
With its successful turnaround initiative, MSM Johor is well-positioned to strengthen its market presence, drive exports, and contribute to the growth of Malaysia's sugar refining industry.