PUTRAJAYA – Thailand’s move to control the export of raw sugar will not affect the supply of the commodity in Malaysia, because the country’s two largest sugar manufacturing companies do not depend on supplies from that country.
The two companies are MSM Malaysia Holdings Berhad (MSM) and Central Sugars Refinery Sdn Bhd (CSR).
Acting Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali, when speaking to the media after inspecting chicken prices at Lotus’s Hypermarket, here today, said that CSR and MSM obtain their supply of raw sugar from sources other than Thailand.
“Hence, with that move in (Thailand), the decrease in export or an increase (in price) of raw sugar will not affect us, because we do not import raw sugar from there,” he said.
He was commenting on Thailand’s recent decision that it will start regulating domestic and exported sugar prices in an effort to control the country’s inflation and maintain its food security.
Thailand is the second largest sugar producer in the world after Brazil, and Malaysia’s raw sugar supply has been sourced entirely from Brazil since the beginning of this year.
Armizan, however, explained that Malaysia is facing a high increase in the price of raw sugar at the global level, which has risen as much as 52 per cent compared with 2021, and which indirectly affects the retail level here.
“It is understood that both these sugar-producing companies are facing a problem because, for every kilogramme of raw sugar sold at the price of RM2.85, they actually lose 88 sen,” he said.
“Currently, we are engaged in discussions with the two companies to address this problem,” he said.
Meanwhile, Armizan admitted that there is a disruption of sugar supply in some areas, so there is a purchase limit of only two packets or two kg per customer, even though there is a supply of sugar in the country.
He said that there are supermarkets or grocery stores making their own rules to limit purchases, so that everyone in the community can buy sufficient sugar. – Bernama, November 1, 2023
