BUTTERWORTH: The Federal Land Development Authority (Felda) has asked the government to consider abolishing the Approved Permit and Import Permit for refined sugar following a recent influx of the commodity, says Datuk Seri Ahmad Shabery Cheek.
The Felda chairman said Malaysia has a surplus of domestically produced sugar and does not require imports, which are sold at the same price as local sugar despite their significantly higher production costs.
He said that MSM Malaysia Holdings Berhad, which is a part of the FGV Group and the nation’s largest sugar producer, hopes the government will revoke these permits, as allowing imports places significant pressure on local manufacturers.
“In countries like Vietnam, the Philippines, Thailand and Indonesia, sugar prices are much higher, ranging from RM5 to RM8 per kilogramme. Yet, their sugar can be sold here in Malaysia for RM2.85, the same as our locally controlled price.
“This indicates a clear element of dumping, which must be stopped,” he told reporters after a visit to MSM Malaysia and launching the Prai Sugar Felda Special Edition in honour of Felda settlers.
Ahmad Shabery said about 60,000 to 70,000 tonnes of refined sugar are imported annually for the retail market, Bernama reported.
He explained that if this situation persists, it will not only impact local refinery operations but could also lead to job losses and long-term economic damage.
“Since we are already producing sugar in excess of our requirements, there is no need to grant any import permits to parties seeking to bring in refined sugar for sale here,” he said.
He added that Felda has formally raised the matter with the Finance and Domestic Trade and Cost of Living ministries for further action.
On another matter, Ahmad Shabery said Felda will discuss with the Penang government and the Railway Assets Corporation on extending the land lease for the MSM sugar refinery in Perai.
He said the lease for the refinery, established in 1964, will expire in five years and it is understood that the state government plans to redevelop the site.
“Closure of the refinery will have a major impact on the nation’s sugar supply chain,” he said.
Ahmad Shabery said Felda will seek an extension of the land lease by another 30 years, allowing MSM to make long-term plans, including the possibility of relocating operations in the future.
“If the MSM Perai refinery were to close, we would need to consider either building a new refinery or upgrading existing facilities in Johor. Both options would involve substantial costs,” he added.
He said constructing a new refinery would require an estimated capital investment of RM4bil, while upgrading production capacity at the Johor refinery would cost more than RM1bil.
