KUALA LUMPUR, May 16, 2023 – The local sugar industry urgently requires the government’s intervention by way of a price increase or even on a floating price basis as the industry is operating in a challenging environment with high operating costs, according to MSM Malaysia Holdings Bhd.
In a statement today, MSM said that as essential food producers, local sugar refiners are tasked to ensure food security while imports are not a sustainable option because exporting countries may face export quotas from their respective governments.
“For example, India may switch off exports in order to protect domestic needs,” the sugar refiner said.
MSM said the statement was in response to recent articles by a local media regarding subsidies given to the sugar business and the company wishes to provide further clarification on the issue.
According to MSM, the local sugar industry has not been receiving subsidy from the government since 2013 and operating in a regulated industry governed by the Domestic Trade and Cost of Living Ministry under Section 5 of the Control of Supplies Act 1961 and Regulation 1 of the Control of Supplies Regulation 1974.
MSM added that retail sugar price in Malaysia remains as amongst the cheapest in the world, as gazetted under the Price Control and Anti-Profiteering Act 2011 (Determination of Maximum Price – No. 2, Order 2017).
— Akses Malaysia
