Malaysia weighs ending approved permits for refined sugar imports to protect local industry 

MALAYSIA – The Malaysian government is considering abolishing approved permits (APs) for companies to import refined white sugar, a move aimed at safeguarding the domestic industry, according to Federal Land and Development Authority (Felda) chairman Datuk Seri Ahmad Shabery Cheek. 

Speaking to local media, Ahmad Shabery confirmed discussions were ongoing but declined to provide details. Industry stakeholders also acknowledged that deliberations are underway but remain tight-lipped on potential outcomes. 

Felda, through its stake in MSM Malaysia Holdings Bhd and Koperasi Permodalan Felda Malaysia Bhd, controls a majority share of one of Malaysia’s two major refined sugar producers. MSM Malaysia Holdings Bhd and Central Sugar Refinery (CSR) Sdn Bhd collectively dominate Malaysia’s refined sugar market. 

Malaysia previously eased regulations following monopoly concerns, granting APs to select companies to import refined sugar. In 2018, a Sarawak-based food and beverage manufacturer received approval to import refined sugar from Thailand and Brazil at cheaper prices, highlighting a shift from earlier practices when APs were tightly restricted to raw sugar importers. 

In 2023, the Domestic Trade and Cost of Living Ministry disclosed that 37 companies had been allowed to import a total of 285,700 tonnes of refined white sugar.  

Critics argue that such imports undermine local producers because AP sugar is typically exempt from tax and priced lower than domestically produced sugar, destabilizing the market and putting Malaysian manufacturers at a disadvantage. 

Much of the imported sugar originates from Thailand, prompting concerns Malaysia has become a dumping ground for surplus supply. Mydin hypermarkets managing director Datuk Ameer Ali Mydin previously said reducing or abolishing APs could result in cheaper goods for consumers. 

Malaysia currently produces far more refined sugar than it consumes. National demand stands at around 120,000 metric tonnes per month, while MSM Malaysia and CSR’s combined capacity is 220,000 metric tonnes, creating a surplus in the market. 

Meanwhile, Malaysia continues to register some of the highest sugar consumption levels in Southeast Asia. The National Health and Morbidity Survey 2024 reported that two in three adolescents and one in two adults consume free sugar exceeding 7.5 teaspoons per day. 

Prime Minister Datuk Seri Anwar Ibrahim recently urged Malaysians to reduce sugar intake, while the Perak government approved a working paper on September 3 to address sugar consumption in the state. 

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