KUCHING: MSM Malaysia Holdings Bhd (MSM), a local sugar refinery, has been advised not to shut down its sugar refinery factories which were losing money but to reach out to investors interested in the business.
Domestic Trade and Consumer Affairs Ministry deputy minister Chong Chieng Jen gave the advice when asked by reporters to comment on the sugar refinery at the ministry’s Gawai Raya gathering at its premises at Jalan Tun Jugah here yesterday.
The sugar refinery company had, in a statement on June 12, claimed that the issuance of import Approved Permit (AP) for Sarawak Food and Beverages (F&B) manufacturers for importing sugar from abroad would affect its performance and force to close down some of its loss-making sugar refinery factories.
“If they are trying to cut costs by closing down the loss-making plants, shutting down means total loss,” said Chong who is also the Pakatan Harapan (PH) Sarawak chairman.
The deputy minister said if the company was losing money, then it must act promptly.
“The company should approach investors to invest in the refinery factories.
“We are the regulatory body for this sugar supply in the country, and we can arrange for potential buyers who want to invest,” he said.
He said there were already investors, not from Sarawak, who had approached the ministry, showed interest and were willing to put in investments to upgrade the systems and provide a cheaper sugar price.
“So far, MSM has not met the ministry for any discussions yet,” added Chong.
Currently, there are two sugar refineries in West Malaysia, namely MSM Malaysia Holdings Bhd (MSM) and Central Sugar Refinery Sdn Bhd (CSR).
Under the new government policy, Sarawak can import sugar from other countries.
So far, the ministry has approved eight permits for F&B manufacturers in Sarawak to import sugar from Thailand at RM1.70 per kg compared to importing sugar from the two local refiners at RM2.70 per kg or even at higher prices.
