MSM reiterates call for tariff to curb dumping of imported sugar
KUALA LUMPUR: MSM Malaysia Holdings Bhd reiterates its call for a tariff on imported sugar to address the ongoing influx of low-priced Thai sugar into the domestic market.
Group chief executive officer Syed Feizal Syed Mohammad said MSM, which produces refined sugar for both industrial and retail consumption, and Central Sugars Refinery Sdn Bhd (CSR) have jointly requested the government to consider imposing a tariff on imported sugar, particularly from Thailand, to safeguard the domestic sugar industry from dumping practices.
He pointed out that when Thai sugar was dumped into Vietnam's market, the Vietnamese did not hesitate to impose a 48 per cent tariff.
"Our effective production capacity, combined with CSR, is about 2.8 million tonnes per year, and domestic demand is about 1.55 million tonnes per year.
"So we have enough capacity to meet the demand, and there is no need to import sugar,' he told a press conference after MSM's 14th Annual General Meeting here today.
Syed Feizal emphasised that MSM can compete in terms of scale and efficiency, but stressed that protection is necessary in cases of price dumping.
"It is not that we cannot compete. But why do we have to face dumping practices? Liberalising the market sometimes works against the local industry and even the ringgit,' he added.
Regarding the revision and expansion of the Sales and Service Tax (SST), Syed Feizal said MSM is engaging with the Royal Malaysian Customs Department and the Ministry of Finance (MOF) to determine whether the five per cent SST applies to raw sugar used in production.
He said that while MSM could pass on the cost to industrial users, the retail segment, which is governed by a controlled ceiling price, would be impacted.
"What we will not be able to pass on is consumer products, which are on the retail shelves, because these products are under a controlled ceiling price.
"So that clarity is required, and we are engaging the government accordingly,' he added. - Bernama
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