KUALA LUMPUR (Mar 25): Deputy Minister of Domestic Trade and Consumer Affairs Fuziah Salleh has clarified that the provision of a RM42 million financial incentive to sugar manufacturers is only a temporary measure aimed at ensuring ample supply of this essential item.

Fuziah said that the financial incentive to sugar manufacturers is neither a subsidy nor a long-term solution. Instead, it serves as a temporary mechanism until the government reaches a final decision regarding the pricing and production of sugar.

"The government is currently engaging with all stakeholders in the industry, including micro, small, and medium traders (PMKS), to find a sustainable solution to the issue," she said in response to Datuk Seri Wee Ka Siong (BN-Ayer Hitam) during the question-and-answer session in Dewan Rakyat on Monday.

Earlier, Fuziah said that two local sugar-producing companies, namely MSM Malaysia Holdings Bhd and Central Sugars Refinery Sdn Bhd (CSR), have been instructed by the government to produce 42,000 metric tonnes of sugar monthly.

"However, for every kilogram of sugar produced, the sugar manufacturers are actually incurring a loss of 88 sen. Therefore, the government has decided to provide incentives to ensure continuous supply," she added.

Meanwhile, Fuziah also clarified that the government has not ceased providing subsidies for wheat flour. Instead, the subsidy has been redirected to the Payung Rahmah initiative under Budget 2024.

"The subsidy was included in the RM200 million allocation for the Payung Rahmah programme. The government has allocated the budget, but there have been no claims as no factory was willing to produce the flour. There has also been no demand from the public," she added.

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