Sugar Ethanol Bioenergy Int- The Federal Land Development Authority (FELDA) has urged the Malaysian government to abolish Approved Permits (APs) and import permits for refined sugar, stressing that the country already produces enough sugar to meet domestic demand. FELDA chairman Datuk Seri Ahmad Shabery Cheek argued that the current system of permits is creating unfair competition for local producers, as foreign sugar is entering the market at artificially low prices. He warned that this threatens the viability of Malaysia’s sugar refining industry, which is vital for ensuring national self-sufficiency and protecting jobs.Supporting this stance, MSM Malaysia Holdings Berhad, one of the nation’s largest refiners under the FGV Group, highlighted that domestic refiners are under pressure due to the influx of cheaper imported sugar.
The issue is compounded by price disparities across the region: while sugar in neighbouring countries such as Vietnam, the Philippines, Thailand, and Indonesia is sold between RM5 and RM8 per kilogram, it enters Malaysia at only RM2.85 — the government-controlled retail price. FELDA claims this is clear evidence of dumping, where foreign producers sell below fair value to undercut local players.Industry leaders warn that if the current system persists, it may erode investment confidence in domestic refining capacity and put jobs at risk. Although cheaper imports may benefit consumers in the short term, FELDA cautions that continued reliance on low-cost foreign sugar could undermine Malaysia’s long-term food security and weaken its refining sector. The proposed abolition of import permits, they argue, would level the playing field and ensure the sustainability of the local sugar industry.
