Wednesday 27 Sep 2023
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KUALA LUMPUR (May 16): MSM Malaysia Holdings Bhd has requested that Putrajaya intervenes to adjust the retail price of sugar to safeguard the profitability and sustainability of the local sugar industry.

The sugar producer of homegrown brand “Gula Prai” pointed out that the industry has not received any government subsidy for a decade.

“Although operating in a challenging environment with high operating costs, the local sugar industry urgently requires the government’s intervention by way of a price increase or even on a floating price basis,” MSM said in a press statement on Tuesday (May 16).

“As essential food producers, local sugar refiners ensure food security, while imports are not a sustainable option and are restricted to export quotas from their countries — particularly India — that (they) may switch off to protect domestic needs.”

The company, 51%-owned by FGV Holdings Bhd, also pointed out that the retail sugar price in Malaysia remains among the cheapest in the world, as gazetted under the Price Control and Anti-Profiteering Act 2011 (Determination of Maximum Price – No. 2, Order 2017).

MSM added that the industry is regulated by the Ministry of Domestic Trade and Cost of Living under Section 5 of the Supply Control Act 1961, and under the Control of Supplies Regulations 1974.

On Tuesday, MSM closed half a sen or 0.63% higher to 80.5 sen, valuing the group at RM562.41 million, while FGV declined a sen or 0.68% to RM1.45, for a market capitalisation of RM5.29 billion.

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