MSM Malaysia Holdings Bhd, the producer of national refined sugar brand “Gula Prai”, will continue its hedging strategies to manage cost fluctuations and volatile market conditions until the government decides on a new pricing mechanism.
Meanwhile, for the non-consumer side, he said the industry operates on a “back-to-back” basis, passing on costs to the industry. “Similarly for the exports, we do about 20 to 25% of exports. So exports also is a kind of a cost pass through to the customers,” he added. The current retail price of sugar is RM2.85 per kg. If the government approves the recommended price float mechanism, the selling price of sugar could increase from RM0.80 to RM1.50, according to Syed Feizal.
Natural gas costs also remain elevated, and raw sugar imports are impacted by the stronger US dollar against the ringgit, it said.