Sugar subsidy rationalisation has no significant impact on Nestle M'sia, says MD

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

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Next In Business News

AmInvest Research ups Hong Leong Bank FV after ESG rating upgrade
Malaysia’s biggest IPO in 2021 said to draw Aberdeen, AIA
Ringgit falls 205bps vs US$ after Fed hints at higher interest rates in 2013
Trade war costs global value chains three to five years of growth, UN says
Blue chips extend losses, tracks key Asian markets
Quick take: Sunway rises on news of digital banking licence bid
Upsides in property sector largely priced in, says Maybank IB
Quick take: Cypark shares fall on news of private placement
Trading ideas: Magni-Tech, CAB Cakaran, Cypark, Sunway, Pharmaniaga
RHB upgrades Yinson to 'buy' after factoring Petrobras contract win

Stories You'll Enjoy