No decision yet on ending RM42mil monthly sugar subsidy, says Fuziah

Deputy domestic trade and cost of living minister says all available options are still being carefully considered.

Deputy domestic trade and cost of living minister Fuziah Salleh said studies on the matter have been conducted and several proposals submitted, but that no final decision has been made. (Envato Elements pic)

PUTRAJAYA:

 The government has yet to decide whether to discontinue the sugar subsidy and is currently reviewing the most appropriate mechanism to reassess the scheme, which costs RM42 million a month.

Deputy domestic trade and cost of living minister Fuziah Salleh said studies on the matter had been conducted and several proposals submitted, but that no final decision had been made.

“The government is examining how we can save or restructure this RM42 million a month (subsidy),” she said in an interview with FMT, adding that all available options were being carefully considered.

The subsidy provided to local sugar producers is a temporary measure introduced by the government in November 2023.

It was aimed at ensuring a continuous supply of essential goods pending the most suitable mechanism for sugar pricing and production.

At RM2.85 per kg, Malaysia’s retail sugar price is among the lowest not only in Asean but also globally.

Fuziah said MSM Malaysia Holdings Bhd currently produces 24,000 tonnes of standard sugar a month for domestic use and receives RM24 million in incentives. Standard sugar refers to sugar packaged in 1kg bags.

Central Sugars Refinery (CSR) meanwhile produces 18,000 tonnes a month and receives RM18 million in incentives.

“The incentive amounts to RM1 for every kg of standard sugar produced by MSM and CSR only,” Fuziah said. - FMT