DOMESTIC Trade and Cost of Living Minister Datuk Armizan Ali has urged more parties to obtain permits to import raw sugar to address supply inadequacies in the country.
He said 43 companies have received permits to import 557,080 metric tons since July this year but have not been able to resolve the problem.
“We have relaxed the requirements for importing permits since July to provide opportunities for others to source cheaper raw sugar, allowing them to be sold below the government-set price of RM2.85 or below.
“We have issued 46 conditional permits to 43 companies, giving them a quota to import 557,080 metric tons of raw sugar. However, as of December 12 this year, only 5% of their quota has been met, mostly for industrial use and not for sale to the market,” Armizan told reporters in Kota Kinabalu today.
Armizan said sugar is not a subsidised item but a controlled-price good, with the government setting the price at RM2.85 per kg.
He explained that Malaysia became dependent on imports after sugar cane planting areas were replaced by palm oil and rubber cultivation.
The issues with sugar supplies began in 2021 when global raw sugar prices surged by 152%, coupled with shipment issues.
Armizan revealed that the country’s major producers, Central Sugars Refinery Sdn Bhd and MSM Malaysia Holdings Bhd, are incurring a significant loss of around 88 sen for each kilo they sell.
Still, he said the government instructed them to produce the goods and allowed them leeway to produce premium sugar grades to offset losses.
“We (the government) are not looking at the issues from the angle of prices alone but also stability. We fear a collapse in sugar prices. This is why we hope more parties can import and sell sugar.
“Who wants to run a loss-making business? They recently received notices that they cannot get loans,” he said.
Armizan stated his ministry is studying the best approach to deal with this problem but also encourages parties, companies, individuals, or politicians with an alternative way to obtain cheaper sugar to apply for import permits.
“We are inviting any parties to apply for the permit. Once all the paperwork checks out, we will immediately give you the approved permit,” he said. – The Vibes, December 21, 2023
