Kuala Lumpur: On Friday, sugar producer MSM Malaysia Holdings Bhd announced that it has secured a contract to export grain sugar to China. The company aims to deliver 45,000 tonnes by the end of this year, reports The Edge Malaysia.
The deal’s value was not disclosed, however, the group said China is among its five biggest export markets, besides the Philippines, Singapore, Indonesia and Vietnam.
MSM’s sugar exports to China have steadily risen, from 16,258 tonnes in 2022 to 32,790 tonnes in 2023, reflecting the company’s expanding market presence in the Chinese sugar industry.
MSM’s relationship with China began in 2019 with the supply of liquid sugar to a major Chinese state-owned food and agriculture enterprise. This partnership has since grown to include the export of grain sugar, which MSM will supply through China Food Trading (Cofco).
MSM Group Chief Executive Officer, Syed Feizal Syed Mohammad said, “For 2024, we project exporting 45,000 tonnes of grain sugar to China. MSM has a 100,000–200,000 tonne per annum target in the medium term for China, with available capacity headroom from MSM Johor refinery through an ongoing ramp-up programme. This landmark agreement underscores MSM’s strategic focus on international expansion and further solidifies our strong acceptance into the Chinese market.”
It pointed out that MSM Johor is positioned very strategically, given the soaring demand in the China market. The company said while improving supply chain efficiency, expansion of internal storage capacity is underway through additional refined sugar warehouses with more packing lines and reduced dependence on renting external warehouses.
