MSM Malaysia Holdings Berhad (MSM) has put forth a proposal to increase the price of one kilogram of sugar to RM3.85, a significant jump from the current RM2.85. MSM Group Chief Operating Officer, Hasni Ahmad emphasised the necessity of this consideration due to escalating operational costs attributed to various global factors, resulting in the company operating at a loss.
According to UTUSAN, the decision to raise prices is deemed essential as production costs have become uncontrollable, influenced by events such as the war in Ukraine, conflicts in the Middle East, and the depreciation of the ringgit currency.
“This step needs to be taken because production costs are no longer controllable due to several factors, including the war in Ukraine, conflicts in the Middle East, and the depreciation of the ringgit currency.” he said.
Hasni highlighted the need to set a suitable price and expressed the company’s anticipation of government feedback on the matter during a press conference held as part of the media visit program to MSM Johor in Pasir Gudang.
In addition to the proposed price hike, Hasni disclosed MSM’s intention to export sugar to Singapore in the coming year. He reassured the public that this move would not adversely affect the domestic sugar supply, emphasising that sugar exports would have no impact on the local market.
Addressing broader concerns about food safety, particularly in relation to sugar products being a basic necessity, Hasni urged the government to prioritise efforts in this regard.
He underscored the importance of establishing Malaysia’s own source of raw sugar, proposing the creation of sugarcane fields domestically. “We need to have our own source of raw sugar, and one suggestion is to establish our own sugarcane fields. This is important because currently, countries like India and Thailand have banned the export of raw sugar, and our supply comes from Brazil.”
This suggestion arises from the current restrictions imposed by countries like India and Thailand, which have banned the export of raw sugar. As Malaysia’s sugar supply is currently reliant on Brazil, Hasni expressed concerns about potential disruptions in the event of Brazil also imposing restrictions on raw sugar exports.
The developments surrounding the proposed sugar price hike and export plans underscore the broader challenges faced by the sugar industry in the wake of global geopolitical and economic factors. The company awaits government considerations on the proposed price adjustment, keeping a close eye on potential impacts on both domestic and international markets.
