BN MP echoes Anwar's urging to end sugar monopoly

PARLIAMENT A BN parliamentarian has echoed Opposition Leader Anwar Ibrahim's urging that the sugar market be opened up to competition following the abolition of the subsidy for the commodity.

Shahrir Samad (BN-Johor Baru) said during the budget debate that the liberalisation of the sugar market would ensure that its price remained competitive for consumers.

"If we no longer provide subsidy for sugar, we acknowledge that it is no longer a controlled item and therefore we should also remove the import restrictions.

"This is so that we can obtain sugar from other nearby sources, such as Thailand, for the domestic price to become more competitive," Shahrir (left) told Parliament this evening.

He pointed out that when cement and steel were removed from the controlled items list, their markets also liberalised and the prices balanced out.

Furthermore, Shahrir said, local sugar companies should also be open to the Competition Act.

Collusion to control supply or price

"This will ensure that market forces can determine a reasonable price and avoid pacts or collusion by quarters to control the supply or price (of sugar)," he said.

Yesterday, Anwar argued that the abolition of the RM551.25 million sugar subsidy would see existing sugar companies chalk up to RM1 billion in profits.

The opposition leader therefore called for the breaking of the sugar monopoly by exposing the commodity to the free market.

On another matter, Shahrir pointed out that the diesel subsidy had skyrocketed from RM4.2 billion in 2010 to RM10 billion in 2012.

He noted that diesel was also used for high-end vehicles with engines of 2,000cc and more.

"However, it must be acknowledged that public transport vehicles, such as school buses, also use diesel," he said.

As such, Shahrir said, a proper mechanism should be set up to ensure that the diesel subsidy reaches the intended group.