Kuala Lumpur: Malaysia is preparing to scale back financial incentives for sugar manufacturers as it moves toward finalising a new pricing framework for refined white sugar, The Edge Malaysia reported.
Domestic Trade and Living Costs Minister Datuk Armizan Mohd Ali told Parliament on Monday, during the debate on the motion of thanks for the royal address, that the incentives introduced in November 2023 are currently under review. He said the assessment is being conducted carefully to avoid sudden price increases for consumers.
“As an immediate measure, we will first reduce the incentives for sugar manufacturers, and an official announcement will be made soon,” Armizan said.
MSM Malaysia Holdings Bhd and Central Sugars Refinery Sdn Bhd (CSR) are the two dominant sugar refiners in Malaysia, with the latter owned by businessman Tan Sri Syed Mokhtar Albukhary.
Since late 2023, the government has provided RM42 million each month in subsidies to ensure a stable supply of the essential commodity. Reports indicate that MSM produces about 24,000 tonnes of standard sugar monthly for the domestic market and receives RM24 million in incentives, while CSR receives RM18 million for producing 18,000 tonnes.
Armizan noted that the incentives are temporary and targeted, applying only to 1kg and 2kg packs of refined white sugar meant for household consumption. Sugar supplied to large food and beverage industries is not covered under the programme.
He added that the incentive rates will be reviewed periodically to ensure public funds are used efficiently.
“The incentive programme is guided by global raw sugar price volatility, influenced by shipping logistics, oil price fluctuations, and ethanol policies in major producing countries such as Brazil and India,” the minister said.
Armizan stressed that the government remains committed to balancing the interests of all stakeholders while maintaining a steady supply of controlled goods and supporting national health priorities.
