KUALA LUMPUR: MSM Malaysia Holdings Bhd
expects the sugar industry to remain challenging in 2025, amid high input costs and volatile raw sugar prices driven by global supply fluctuations, according to acting group CEO Hasni Ahmad.
“Despite these headwinds, domestic sugar demand is expected to peak towards year-end, supported by festive consumption trends.
“The group continues to reinforce our domestic footprint and mitigate export pricing challenges, albeit steady demand, and exploit value-added products market opportunities. Furthermore, the group streamlining and optimising our operations to ensure profitability,” Hasni said in a statement.
For the second quarter ended June 30 (2Q25), the sugar producer narrowed its net loss to RM29.7mil, or 4.23 sen per share, from RM32.4mil, or 4.61 sen per share, a year ago.
Revenue slipped to RM812.7mil from RM833.1mil, mainly due to lower average selling price (ASP) notably in the industrial and export categories, despite recording higher sales volume.
For the first half, the group posted a net loss of RM26mil compared to a net profit of RM9.3mil a year earlier, while revenue declined 10.2% to RM1.6bil from RM1.7bil.
The group reported a lower capacity utilisation factor of 49% in the 2Q25, compared to 50% in 2Q24 due to production curtailment to manage inventory in both refineries but sustained by consistency in efficiency yield.
MSM said it remains actively engaged with the Government through the Joint-Sugar Industry platform to finalise a sustainable pricing framework and implement import controls on refined sugar — measures it views as critical to safeguarding national food security and ensuring the long-term viability of Malaysia’s sugar industry.
