PETALING JAYA (THE STAR/ASIA NEWS NETWORK) - Malaysia is conducting a study on whether to raise the price ceiling of sugar.

Domestic Trade and Consumer Affairs Ministry secretary-general Azman Mohd Yusof said a report was expected to be tabled in the Cabinet after consultation with stakeholders within the year.

"The decision on whether or not to raise the price of sugar will be made by the Cabinet," he said when contacted by The Star.

In Singapore, a spokesman for the Singapore Food Agency said last month the Republic imports sugar from more than 40 countries, including Australia, India, Malaysia and Thailand.

Currently, Malaysia's domestic wholesale refined sugar price is capped at RM2.69 (S$0.85) per kilogramme.

Sugar industry players including MSM Malaysia Holdings have urged the government to review the price ceiling of sugar amid rising raw material and freight costs.

On June 8, MSM group chief executive officer Syed Feizal Syed Mohammad was quoted as saying that the commodity had seen only a net increase of RM0.01 per kilogram since 2011.

Ministry enforcement director Azman Adam said sugar producers had requested the government to raise the price ceiling.

"The government has yet to decide," he said.

Restaurants and bakeries are mindful of having to increase their prices, should the price of sugar be raised.

Restaurant and Bistro Owners Association vice-president Jeremy Lim said while sugar was just a small component of the total food composition used by them, any price increase would still impact operators.

Food operators, he said, would have to eventually pass on the additional cost to consumers.

"We have been put under so much pressure due to the rising cost of manpower, fuel and protein such as chicken and eggs. We will feel the pinch and eventually the cost will be passed on to consumers," he said.

Malaysian Bakery, Biscuit, Confectionery, Mee and Kuay Teow Merchants Association president Lai Yee Kein said the impact of any price increase would depend on a bakery's products and also on the percentage of sugar used in the products.

If the percentage of sugar used is low, then the increase in production cost would be minimal and would not affect profits much, he said.

Thus, it would depend on the individual manufacturer on whether they want to increase prices or not, he added.

Consumers Association of Penang president Mohideen Abdul Kader said the government must ensure that the proposed price increase was reasonable to eliminate profiteering.

"Any suggestion for sugar subsidy must not be entertained," he added.

He urged the government to also consider increasing the sugar tax on sugar-sweetened beverages (SSB) introduced in 2019. This would be further reason for people to cut sugar intake, he said.

"We advice consumers to reduce their sugar intake, eat more nutritious home-cooked  food, and wherever possible, try to grow your own vegetables," he added.

Consumers, he said, should refrain from consuming sugary drinks or food that is detrimental to health as statistics in 2019 showed that there were 3.9 million diabetic Malaysians.

Nutrition Society of Malaysia president Tee E Siong said it is only through a holistic healthy diet approach - which includes the concept of balance, moderation and variety - that Malaysians can lead healthier lives.

"Consumers should be aware of the undesirable effects of consuming food and beverages with excessive amounts of sugar. Such self-awareness should prompt them to use less sugar in their food and beverages, instead of having to rely on price increases to dictate their consumption," he said.

While sugar per se does not cause diabetes, Dr Tee said excessive sugar intake is undesirable as it will add on calories to a person's diet and not contribute any nutrients.

"Long-term overconsumption of calories will add on to our body weight. This, in turn, increases the risk of several diet-related chronic diseases such as diabetes, coronary heart disease and cancer," he said.

Sugar is a controlled item under the Control of Supplies Act 1961.

Sugar consumption per capita reached 42.4kg in 2019 in Malaysia, according to statistics of the Food and Agriculture Organisation of the United Nations.

Meanwhile, many consumers are unfazed by the potential sugar price cap increase.

Mr Jehan Ahmad, 35, said even if there was an increase, the impact might not be significant for him as sugar and sweetened items make up a negligible part of his household spending.

"My staples are sugar, condensed milk and biscuits, but my family are not big consumers of sugar," the manager from Kuala Lumpur said. "I think the increase will still be manageable."