MSM prospects boosted by surprise sugar price hike

THE surprise rise in the ceiling price of domestic sugar on March 1 is set to improve the prospects of MSM Malaysia Holdings Bhd, whose recent earnings were negatively impacted by the rise in global raw sugar prices.

MSM is the largest local sugar refiner but its sales of refined sugar is subject to the ceiling price imposed by the Government, considering that sugar is deemed a controlled item. Raw sugar is the biggest single cost component for the group.