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Tuesday, November 22, 2016

PKR Youth warns against sugar price hike amid negotiations



PKR Youth has spoken out against a possible increase in sugar prices amid negotiations between leading refined sugar producer MSM Malaysia Holdings Bhd and the government.
PKR Youth information chief Lee Chean Chung voiced his opposition after The Edge Financial Daily reported today that MSM Malaysia Holdings Bhd is trying to convince Putrajaya to raise the ceiling retail price of refined sugar by 30 percent.
The company had said the hike was necessary due to the spike in sugar price as well as the weakening ringgit.
However, Lee said the reason given was unfair to consumers.
"It is public knowledge that when the price of sugar goes down, the government does not reduce the (retail) price.
"So why should the retail price increase when the cost increases?" he said.
Lee said despite the challenges cited by the company, it still made a net profit of RM23.31 million in the third quarter of 2016.
He added that the ongoing negotiations was a surprise as there was no public consultation.

Lee said the current uncertain economic situation meant that now was not the right time to increase the price of an essential good.
"An increase in sugar price will only cause inflation that will burden the people," he said.
On Nov 1, subsidies for cooking oil was also phased out except for those packaged in 1kg polybags.-Mkini

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