MSM Malaysia Holdings Berhad (MSM), the producer of the national refined sugar brand Gula Prai, has expressed its appreciation to the Ministry of Finance for issuing a timely clarification regarding the implementation of the Sales and Services Tax (SST) on raw sugar imports.
In a statement released today, the Ministry confirmed that while a five percent SST will apply to raw sugar—the primary input in refined sugar production—refined sugar manufacturers may apply for a tax exemption, subject to specific conditions.
The clarification follows concerns raised by MSM during its Annual General Meeting, where the company highlighted the potential for significant cost pressures arising from the SST’s extension to raw sugar. MSM warned that an increase in input costs could influence the pricing structure of refined sugar, particularly for industrial consumers.
MSM acknowledged the Ministry’s swift response and the clarity provided on the exemption mechanism, describing it as critical in the current economic environment. The retail price of sugar in Malaysia has been maintained at RM2.85 per kilogram since 2011, despite a consistent rise in global raw sugar prices over the years.
“We are very grateful to the Ministry for its responsive and pragmatic approach in addressing industry concerns. The approval of the exemption application mechanism provides much-needed clarity and flexibility for sugar refiners like MSM. This allows us to proactively manage input costs and reduce immediate pressure on refined sugar prices, while continuing to fulfil our role in the country’s sugar supply chain under the existing retail pricing framework,” said MSM Group Chief Executive Officer, Syed Feizal Syed Mohammad.
The group reaffirmed its commitment to collaborating closely with the government and stakeholders to ensure stability in both supply and pricing across the food industry.
“While input cost management continues to be a priority, MSM would like to assure customers and partners that our focus on operational efficiency and fair pricing will continue. We are confident that the implementation of this exemption mechanism will have a positive impact in preserving the competitiveness of the country’s food manufacturing sector,” Syed Feizal added.
-Berita Harian
