Malaysia’s Federal Land Development Authority (FELDA) has called on the government to eliminate the Approved Permits (AP) and Import Permits (IP) for refined sugar, following a recent surge in supply.
FELDA chairman Datuk Seri Ahmad Shabery Cheek highlighted that Malaysia’s domestic sugar production is adequate and does not require supplementary imports, which he argued create unfair competition for local producers. He noted that imported sugar, ranging between 60,000 and 70,000 metric tons annually, is sold at the same regulated price as locally produced sugar, despite incurring higher production costs.
“In countries like Vietnam, the Philippines, Thailand, and Indonesia, sugar prices are much higher, ranging from RM5 to RM8 per kg. 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 said.
Ahmad Shabery added that MSM Malaysia Holdings Berhad, the nation’s leading sugar producer and a subsidiary of the FGV Group, backs the removal of these permits, viewing it as a way to ease the strain on domestic refining operations.
He warned that if the current situation continues, it could disrupt local refining activities resulting in job cuts and severe harm to the sector.
Felda has officially brought the issue to the attention of the Finance Ministry and the Ministry of Domestic Trade and Cost of Living, urging them to take further action.
Ahmad Shabery also mentioned that Felda intends to engage in discussions with the Penang state government and the Railway Assets Corporation regarding the extension of the land lease for the MSM sugar refinery located in Perai. The refinery, which has been in operation since 1964, faces lease expiration in five years, and there are indications that the state plans to redevelop the area. Felda aims to secure a 30-year lease extension for MSM, including the relocation of its operations.
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