SHAH ALAM (July 16): Central Sugars Refinery Sdn Bhd (CSR) said it will be increasing efforts over the next one year to promote the use of brown sugar as a preferred option for Malaysians. 

As part of this initiative, it said it will be reducing the prices of its natural brown sugar product with effect from Aug 1, 2018, CSR’s chief executive officer Hishammudin Hasan said. 

“Prices of natural brown sugar are currently at RM4.25 per kg and they will be reduced to RM3.50 per kg in August. 

As for coarse grain white sugar, the ceiling price is currently RM2.95 per kg, while fine granulated sugar is  RM3.05 per kg. 

“Our aim is to [get more people to] move away from consuming white sugar to brown sugar, which is a better sugar. Brown sugar is better because it tastes better and it’s also healthier. Over the next one year, you will see better sugar coming on board,” he said at a press conference after a ceremony to commemorate the branding of the group. 

Hishammudin said CSR has embarked on a new rebranding initiative which will see a change in the packaging, distribution, as well as dissemination of information on the benefits of brown sugar via social media. 

He said capital expenditure spent this year for working capital, which includes this rebranding exercise, is between RM16 million to RM20 million, while last year was about RM30 million was spent. 

Meanwhile, commenting briefly on claims that the group operated as a monopoly, Hishammuddin said it was not true.   

“There is no monopoly in Malaysia, we are competing. If you go to retail shops, you will see imported brands too. How can there be a monopoly?” he said.

“We have also reduced the price of premium sugar to make it more reachable but with base sugar at RM2.95, if we were to reduce it further, it would only spur consumption. The focus is on managing sugar consumption. Also as it is, we are the cheapest in the world,” he said. 

CSR, together with another refiner MSM Malaysia Holdings Bhd, operates five sugar refinery plants, including a new plant in Tanjung Langsat, Johor, which is scheduled to start operations this month. 

MSM is a unit under FGV Holdings Bhd, while CSR is a unit under Tradewinds (M) Bhd. 

Hishammudin said current total capacity of the existing four refineries is two million tonnes per year however with the upcoming new refinery in Johor, total capacity will be three million tonnes per year. 

Domestic demand in Malaysia is approximately 1.5 million tonnes per year.