Malaysia weighs raising price ceiling of sugar as costs surge
Report expected this year; sugar industry players urge govt to review cap as others warn of impact on consumers
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PETALING JAYA • 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 with the Cabinet after consultations 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.
A spokesman for the Singapore Food Agency said last month the Republic imports sugar from over 40 countries, including Australia, India, Malaysia and Thailand.
Currently, Malaysia's domestic wholesale refined sugar price is capped at RM2.69 (85 Singapore cents) per kilogram.
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 Syed Feizal Syed Mohammad was quoted as saying that the commodity had seen a net increase of only one sen per kilogram since 2011.
The ministry's enforcement director Azman Adam said sugar producers had requested the government to raise the price ceiling.
Restaurants and bakeries are mindful of having to increase their prices, should the price of sugar be raised.
Mr Jeremy Lim, vice-president of the Restaurant and Bistro Owners Association, said while sugar was just a small component of the food ingredients used, any price increase would still impact food operators, who would have to eventually pass on the additional cost to consumers.
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.
Mr Mohideen Abdul Kader, president of the Consumers' Association of Penang, 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 that was introduced in 2019 - another reason for people to cut their sugar intake, he said.
People, he said, should refrain from consuming sugary drinks or food that is detrimental to health, as statistics in 2019 showed 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.
Sugar is a controlled item under the Control of Supplies Act 1961.
Sugar consumption per capita reached 42.4kg in Malaysia in 2019, according to statistics from the Food and Agriculture Organisation of the United Nations.
Meanwhile, some consumers are unfazed by the potential raising of the sugar price cap.
Mr Jehan Ahmad, 35, said its impact might not be significant for him as sugar and sweetened items make up a negligible part of his household spending.
"I think the increase will still be manageable," he said.
THE STAR/ASIA NEWS NETWORK