The Malaysian government is considering removing approved permits (APs) that allow companies to import refined white sugar into the country, in a move aimed at safeguarding the domestic sugar industry, reported Twentytwo13 news portal.
“This is to protect the local industry,” said Federal Land and Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek. He declined to provide further details, stating that discussions are still ongoing.
As per the meida report, industry sources have confirmed that the proposal is being discussed, but specifics remain limited at this stage.
Felda, through its recently delisted entity FGV Holdings Bhd, holds a 51% stake in MSM Malaysia Holdings Bhd. Another 15% is owned by Koperasi Permodalan Felda Malaysia Bhd. MSM Malaysia is one of the two main producers of refined sugar in the country, alongside Central Sugar Refinery (CSR) Sdn Bhd.
Malaysia had previously liberalised sugar imports following allegations of monopoly in the sector. In 2018, the government granted a Sarawak-based food and beverage manufacturer an AP to import refined sugar from countries like Thailand and Brazil, where prices were significantly lower. Then-Deputy Minister of Domestic Trade and Consumer Affairs, Chong Chieng Jen, said during a December 27, 2018, press conference that it had been nearly impossible for companies to obtain such permits previously, as they were typically restricted to a few firms that controlled the import of raw sugar for refining.
As of 2023, the Ministry of Domestic Trade and Cost of Living reported that 37 companies had been granted approval to import a combined total of 285,700 tonnes of refined white sugar.
However, critics argue that the AP system has hurt local producers, noting that imported sugar is often cheaper and tax-exempt, making it difficult for domestic manufacturers to compete. Much of the imported supply originates from Thailand, prompting concerns that Malaysia has become a dumping ground for surplus Thai sugar.
Datuk Ameer Ali Mydin, managing director of Mydin hypermarkets and a vocal industry commentator, has previously advocated for reducing or eliminating APs. Speaking to Free Malaysia Today last year, he said, “For example, sugar requires an AP and government approval to be imported. Whether one gets it or not is a different story. There is no transparency.”
The ongoing sugar debate has even influenced public policy. In August last year, the federal government reduced sugar use at official functions. Prime Minister Datuk Seri Anwar Ibrahim also urged Malaysians to moderate their sugar intake for health reasons.
Most recently, on September 3, the Perak state government approved a working paper aimed at tackling sugar consumption in the state.
