Permit to bring in sugar to reduce cost of F&B manufacturers — Chong
MIRI: Food and beverage manufacturing companies in Sarawak and Sabah will now be able to directly import sugar following the introduction of a new permit which aims to reduce production cost.
Deputy Minister of Domestic Trade and Consumer Af fairs Chong Chieng Jen who announced this yesterday said food and beverage industry players can write to the ministry to apply for the permit to bring in sugar from overseas.
“Importing sugar can lower the cost of production tremendously. All those involved in the food processing and manufacturing industry can now apply to the ministry for permit to import sugar. Feel free to write to us and we will process the application and get it done as soon as possible,” he told a press conference here yesterday.
Chong revealed that the international price for raw sugar has been at its lowest over the past few months – at RM1.20 per kilogramme.
“For Malaysian sugar manufacturers, we do not have raw sugar. The sugar plants import raw sugar and refine it to become refined sugar. The cost will come up to RM2.10 for refinery, transport and other things,” he said.
He added that from checking with Sarawak food manufacturers and processing plants, most of them obtained their sugar from plants in Peninsular Malaysia.
“Normally for B 2 B (business-to-business) dealings, the food manufacturer can get very low price from the sugar plants, but because Sarawak’s volume is small, these sugar plants adopt a ‘ take-it- or-leave-it’ attitude.
“So on average, some of them are paying around RM2.60 to RM2.80 per kilogramme. If (Sarawak) food processing manufacturers were to import directly from overseas, including Thailand, they can get it (sugar) at a cost of about RM2.10 or RM2.20 per kilogramme,” he said.
Asked if Peninsular Malaysian manufacturers could apply for the same permit, Chong said they could but that it would not make much of a difference for them.
“In West Malaysia, some of these players offer a much lower price. At the end of the day, the price difference between buying from these sugar manufacturers and importing from foreign sugar manufacturers is not much.
“But they are also free to apply for the import permit,” he said.
Chong also disclosed that the price difference for raw sugar between Sarawak and Sabah, and Peninsula Malaysia is at least RM500 per tonne.
“This is a good gesture that the ministry is offering to the food and beverage industry to lessen their cost of production.
“That is why I appeal to all these food and beverage industry players to make full use of this good gesture. But do not abuse it such as by importing more than you need and use it for trading,” he reminded.
Pujut assemblyman Dr Ting Tiong Choon, Senator Alan Ling and Ministry of Domestic Trade and Consumer Affairs Miri chief Joe Azmi Jamil were present at the press conference.