PUTRAJAYA will soon announce its plans to break up the sugar monopoly, said Finance Minister Lim Guan Eng.

“An announcement will be made regarding the price of sugar. An announcement will be made by the Ministry of Domestic Trade and Consumer Affairs,” he told the Dewan Negara during question time today.

Sugar is retailed at RM2.90 per kg compared with the global average price of RM1.40, he said.

The retail price in Malaysia now is RM2.95 per kg for white coarse sugar and RM3.05 for granulated sugar. Malaysia imports almost all of its sugar.

There are two companies in the domestic sugar refinery industry: Penang-based Malayan Sugar Manufacturing (MSM), a unit under FGV Holdings Bhd, and Central Sugars Refinery (CSR), owned by Tradewinds (M) Bhd. The two operate five sugar refinery plants in the peninsula.

Putrajaya may licence more sugar importers to break what it alleged was a monopoly on the trade by reviewing sugar import licences or approved permits (AP).

“The price of sugar depends on the world raw sugar price and takes into account the administrative cost, refinery operations, logistics and manufacturer, wholesaler and retailer margins.

“After taking into account these costs, the government feels it is impossible to reduce the retail price of sugar to RM1.50 per kg,” Deputy Domestic Trade and Consumer Affairs Minister Chong Chieng Jen told the Dewan Rakyat earlier this month.

MSM and CSR had issued a joint statement last month denying that the sugar industry was a monopoly market. – August 20, 2018.