KUALA LUMPUR: A sugar price hike is not necessary as long as the government continues to provide incentives, said the Federal Land Development Authority (Felda).
Felda chairman Datuk Seri Ahmad Shabery Cheek acknowledged that Malaysia’s sugar industry has been facing increasing pressure due to the rising cost of raw sugar globally.
“Sugar is in everything. Increasing the price would upset many people,” he said after the FGV Holdings Bhd’s event launch today.
Shabery added that the mismatch between global raw sugar prices and the government-controlled retail price had led MSM Malaysia Holdings Bhd, the country’s largest sugar producer and a subsidiary of FGV, to suffer financial losses.
“There was a time when, for every kilogramme of sugar sold, RM1 was essentially subsidised by the settlers themselves. It impacted MSM’s dividends and created hardship,” he said.
However, Shabery noted that the situation has improved with government intervention.
“Thanks to the government’s support under the Madani framework, and as long as the government continues to provide incentives, MSM is no longer operating at a loss,” he said.
Shabery also highlighted that the assistance not only helps the public but also eases the burden on Felda settlers.
He reaffirmed FGV’s commitment to continue working closely with the government to maintain sustainable operations and protect the interests of its settler shareholders.
© New Straits Times Press (M) Bhd
