KOTA KINABALU: The federal government is safeguarding the supply of refined white sugar in Sabah, Sarawak and Labuan by sending some 2,000 metric tonnes of buffer stock to the states and federal territory from May 1.
The initiative aims to address supply disruptions caused by the states’ reliance on shipments from Peninsular Malaysia, says Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
He said in a statement on Sunday (April 20) that the move was approved by the Cabinet on March 26.
The decision follows severe supply disruptions recorded between August and October 2023, worsened by shipping delays that typically take five days to reach Sarawak and seven days to Sabah.
Armizan said the government is taking proactive steps to safeguard the supply of key goods in the region.
“The government is committed to ensuring that the supply of essential goods remains stable and affordable, especially during festive seasons when demand surges,” he said.
The buffer stock will involve 1,000 metric tonnes allocated to Sabah and Labuan, and another 1,000 metric tonnes to Sarawak, to be delivered in stages from next month.
The stock will be supplied by MSM Malaysia Holdings Berhad and Central Sugars Refinery (CSR) Sdn Bhd, both based in Peninsular Malaysia, under a directive from the ministry’s Supply Controller.
The ministry also announced that the federal government has approved an increase in the sugar shipping subsidy for Sabah, Sarawak and Labuan, doubling the allocation from RM19mil to RM38mil annually. This represents a subsidy increase from 10 sen to 20 sen per kilogram.
To further stabilise supply and pricing, a new Supply and Price Stabilisation Committee will be formed under the ministry.
The committee will comprise relevant ministries, agencies and industry players, and will meet at least six times a year to coordinate responses to cost-of-living issues.
