The government has not yet decided whether to discontinue the sugar subsidy, currently costing RM42 million per month, and is reviewing the most appropriate mechanism to reassess the scheme.
Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh said studies have been conducted and several proposals submitted, but no final decision has 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 are being carefully considered.
The subsidy, introduced in November 2023, is a temporary measure aimed at ensuring a continuous supply of essential goods while the government determines the most suitable mechanism for sugar pricing and production.
At RM2.85 per kg, Malaysia’s retail sugar price is among the lowest in ASEAN and globally.
Fuziah explained that MSM Malaysia Holdings Bhd currently produces 24,000 tonnes of standard sugar per month for domestic consumption and receives RM24 million in incentives. Standard sugar refers to sugar packaged in 1kg bags.
Meanwhile, Central Sugars Refinery (CSR) produces 18,000 tonnes per month and receives RM18 million in incentives.
“The incentive works out to RM1 for every kg of standard sugar produced by MSM and CSR,” Fuziah said.
