KUALA LUMPUR: The price of raw sugar has increased significantly since 2020, causing the actual price of sugar to surpass the government-set ceiling price of RM2.85 per kilogramme. Federal Land Development Board (Felda) chairman Datuk Seri Ahmad Shabery Cheek expressed concern that if the current situation persists and the price of sugar remains low, Felda settlers will continue to face financial losses.
Ahmad Shabery explained that because the settlers are shareholders of FGV Holdings Berhad (FGV) and Koperasi Permodalan Felda Bhd (KPF), who are major stakeholders in the country’s main sugar producer MSM Malaysia Holdings Bhd (MSM), they are directly affected by the rising costs.
He noted that FGV and KPF respectively hold 51 per cent and 15.27 per cent of MSM, and the Felda settlers are shareholders of the two companies as well. The rising price of raw sugar has been a major concern, as it has tripled from RM200 per tonne in 2020 to RM600 per tonne now.
Despite the increase in raw material costs, the government-set ceiling price for sugar sold to the public remains at RM2.85 per kg, resulting in significant losses for MSM, which reported a loss of RM178 million in 2022. This has had a major impact on Felda settlers.
According to Ahmad Shabery, the price of standard sugar in Malaysia is much lower compared to other countries in the Asean region, such as Thailand, where the price of sugar ranges from RM3.90 to RM4 per kg.
He emphasized that the current subsidization of sugar is effectively being borne by the settlers due to their ownership in MSM, rather than by the government. He stressed that this is unfair and burdensome for the settlers, and urged the government to address the issue.
As a result, he called for the government to take appropriate measures to relieve the settlers from this subsidy burden and stated that Felda would collaborate with the government to find a viable solution to the problem. – Bernama
