Putrajaya (Malaysia): The Malaysian government is yet to take a decision on discontinuing its RM42 million-a-month sugar subsidy. Fuziah Salleh , Deputy Domestic Trade and Cost of Living Minister said that the government has not taken any decision on whether to continue, restructure, or phase it out, reports Free Malaysia Today.
The temporary measure, introduced in November 2023, was designed to ensure a steady supply of sugar while the government assesses the best approach for pricing and production.
“We are carefully looking at how we can save or reorganise this RM42 million monthly subsidy,” Fuziah told FMT, noting that multiple options are under consideration.
Malaysia’s retail sugar price currently stands at RM2.85 per kilogram, one of the lowest in the region and worldwide. Under the subsidy, local producers receive RM1 for every kilogram of standard sugar produced. MSM Malaysia Holdings Bhd produces 24,000 tonnes of standard sugar each month and receives RM24 million in incentives, while Central Sugars Refinery (CSR) produces 18,000 tonnes and receives RM18 million.
Fuziah added that studies have been conducted and several proposals submitted, but no final decision has been made. The government aims to balance affordability for consumers with the long-term sustainability of domestic sugar production.
