KUALA LUMPUR: Nestle Malaysia said the recent sugar subsidy rationalisation will have no significant impact to the company and that price increase of its products will be a last resort.
Its managing director and Region Head Malaysia/Singapore Alois Hofbauer said the company have not been receiving any sugar subsidy since last year.
"Price increase will be a last resort because we are aware that our products are consumed by millions everyday.
"Of course, there are moments when prices have to go up, but we try to avoid them because our products have to be at their most competitive and at affordable price," Hofbauer told a press conference after signing a collaborative agreement with Sime Darby Bhd president and group chief executive officer Tan Sri Mohd Bakke Salleh.
The signing ceremony was witnesses by Sabah Tourism, Culture and Environment Minister Datuk Seri Masidi Manjun, Nestle Malaysia chairman Tan Sri Syed Zainol Anwar Jamalullail and Governing Council Member of Sime Darby Foundation Caroline Christine Russell.Hofbauer said that to further mitigate the impact of the sugar subsidy removal, the company has been working on reducing the sugar level in its products without compromising on the taste.
Following the agreement, Nestle Malaysia and Sime Darby Foundation will jointly undertake "Project RiLeaf", an initiative to reforest critical riparian reserves along the Kinabatangan River in Sabah.
Mohd Bakke, who is also the governing council member of Sime Darby Foundation, said the company would co-fund the project for two years from next year, with a total contribution of RM2mil.
"Part of the programme is to engage the independent smallholders, subsidise and assist them to eventually attain the Certified Sustainable Palm Oil.
"Their involvement will help protect the dynamic biodiversity of the Kinabatangan area, including the inland wildlife corridors and degraded sanctuary areas," he added. - Bernama