Kuala Lumpur: The Ministry of Domestic Trade and Cost of Living is closely monitoring the global sugar market’s developments and their potential impact on local supply and pricing, reported Business Times.
Minister Datuk Armizan Mohd Ali emphasized the importance of addressing the stability of imported raw sugar and the sustainability of the local processed sugar supply chain. This becomes particularly crucial as the country relies entirely on 100% imported raw sugar.
In a recent statement, Minister Armizan highlighted the need to evaluate the direction of the local sugar industry and supply chain beyond local market sugar prices. “For the past few years, the world has grappled with escalating raw sugar prices, heightening concerns about a global sugar supply shortage,” he remarked following a recent meeting.
Industry observers are expressing concerns that Malaysia might find itself dependent solely on imported sugar if the viability of the local sugar industry diminishes. Wan Mohd Farid Wan Zakaria, a senior lecturer at UiTM’s Faculty of Management & Business, underscored, “Therefore, the local sugar prices will be contingent on the world market, surpassing the current domestic processed sugar prices significantly.”
Highlighting the potential risks, Wan Mohd Farid pointed out, “When relying entirely on external supplies for essential commodities, we must also consider the instability and disruption of the world’s supply chain. There is a risk if supplier countries limit exports to prioritize their domestic markets.”
He further noted that the high dependence on imports coupled with a weakened ringgit could elevate the risk of facing higher sugar prices. Consequently, he urged the government to consider both short and long-term effects in its approach to managing sugar prices.
