Kuala lumpur: Government incentives have successfully prevented any surge in sugar prices in the country, despite similar increases in the cost of raw sugar on the global market, according to Datuk Seri Ahmad Shabery Cheek, Chairman of the Federal Land Development Authority (Felda).

According to BERNAMA News Agency, the incentives provided to major sugar producers, including MSM Malaysia Holdings Bhd (MSM), have not only prevented losses to the companies involved but also provided relief to the public amidst rising living costs. Datuk Seri Ahmad Shabery Cheek emphasized that the government’s support is crucial in maintaining stable sugar prices, benefiting settlers who own shares in sugar producers.

He recounted past scenarios where settlers faced financial difficulties due to reductions in their dividends, which were impacted by subsidies they had to provide when selling sugar at a controlled price. The government’s assistance, he noted, has alleviated such hardships by offsetting the costs through incentives, thus preventing a price hike.

MSM had previously proposed raising the price of coarse sugar from RM2.85 per kilogram to RM3.85 per kilogram to align with global sugar price increases. This proposal was intended to help MSM mitigate losses arising from the disparity between the actual cost of sugar and the government-mandated ceiling price.