Latest news with #SyedFeizal
The Sun
2 days ago
- Business
- The Sun
MSM Malaysia unfazed by influx of sugar imported from Thailand
KUALA LUMPUR: Local sugar producer MSM Malaysia Holdings Bhd remains confident in its competitive position despite the influx of imported sugar from Thailand. The group is well positioned to compete with imported products, leveraging its established domestic scale and operational capabilities and will continue to maintain its market presence and deliver value to customers in the face of increased competition. Group CEO Syed Feizal Syed Mohammad said the company has a total scale of two million tons and is adopting a strategy of competing with imported sugar for a certain given volume. 'We still retain a good number of market share, and we have a specific price strategy to counter Thai imports, while the government considers other mitigating factors. 'Our refineries got good efficiencies, and we see significant improvement in Johor, so it's not a matter of economics,' he said after the company's 14th annual general meeting today. Syed Feizal said that special actions must be taken to mitigate dumping practices and that the joint industry has taken measures in that direction. MSM marked 2024 with a turnaround for the group, continuing its positive momentum to produce a year-on-year improvement, which was made all the more significant by a return to profitability. This progress was underpinned by stronger operational performance at MSM Sugar Refinery (Johor) Sdn Bhd and the continued optimisation of steady operations at MSM Prai Bhd. In FY24, MSM Malaysia recorded a profit before tax of RM75 million, a significant reversal from the loss before tax of RM28 million in FY23. Revenue grew 15% year-on-year to RM3.54 billion in FY24 compared to RM3.09 billion in FY23, supported by an 8% increase in sales volume and a 6% higher average selling price. The positive growth was underpinned by the execution of transformation and turnaround strategy, focusing on cost optimisation, efficiency enhancements and market expansion. Despite market challenges, including volatile raw sugar prices and rising freight costs, MSM Malaysia effectively managed risks through proactive hedging strategies and improved cost structures. 'FY24 marked a pivotal year for MSM Malaysia as we successfully delivered a significant turnaround, returning to profitability and achieving notable financial and operational improvements. 'One of the most significant contributors to our improved performance was stronger production efficiency. In 2024, the group recorded a capacity utilisation factor of 54%, up from 48% in 2023, while our yield improved to 96% from 95%,' Syed Feizal said. He noted that these gains were supported by operational discipline at both MSM Prai and MSM Johor, where they streamlined processes, enhanced preventive maintenance and improved energy efficiency. 'MSM will continue to mitigate input costs such as raw sugar, forex and freight with gradual hedging as part of risk management to ensure margin sustainability while optimising cost management through production and supply chain efficiencies,' Syed Feizal said. For 2025, MSM aims to expand market presence, particularly in China and the Asean region, including Vietnam, Indonesia, Singapore and the Philippines. The goal is to increase total export volumes to 360,000 metric tons in 2025, with an emphasis on value-added products, such as liquid sugar and premixes, from MSM Johor. Looking ahead, MSM Malaysia approaches 2025 with cautious optimism, supported by the progress achieved over the past year and the solid foundation established through its ongoing transformation. The company's priority will be to unlock greater operational efficiency while driving strategic growth initiatives to strengthen long-term sustainability. A key focus will be on boosting overall sales through enhanced domestic and export strategies, including targeted collaborations and partnerships. Separately, in a Bursa Malaysia filing yesterday, MSM Malaysia noted that the company aims to sustain growth amidst geopolitical challenges and market volatility. MSM Malaysia said it is closely monitoring market dynamics as the sugar industry continues to face challenges driven by persistently high input costs and volatile raw sugar prices, which are influenced by fluctuating global production. This is particularly heightened by the increased geopolitical tensions and ongoing trade wars, which may further disrupt global supply chains and foreign exchange rates. To address these risks, MSM Malaysia is reinforcing its domestic market position while managing export pricing pressures. The group is also leveraging steady domestic demand and actively pursuing opportunities in value-added products to diversify revenue streams. MSM Malaysia said engagement with government stakeholders remains a priority. The company is working to finalise a sustainable pricing mechanism for the domestic retail segment and advocating for effective controls on imported refined sugar. These measures are essential to support national food security and ensure the long-term sustainability of Malaysia's sugar industry.
The Star
2 days ago
- Business
- The Star
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
The Sun
2 days ago
- Business
- The Sun
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.
Malay Mail
2 days ago
- Business
- Malay Mail
Stop the dump: MSM Malaysia urges action on cheap Thai sugar imports
KUALA LUMPUR, June 19 — 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
The Sun
2 days ago
- Business
- The Sun
MSM Malaysia aims to increase export volumes in 2025, going deeper into China, ASEAN
KUALA LUMPUR: MSM Malaysia Holdings Bhd is targeting a significant jump in export volumes of value-added products like liquid sugar and premixes from MSM Johor this year. The group aims to ramp up exports to 360,000 tonnes in 2025, up from 240,000 tonnes last year, leveraging enhanced production capacity from its Johor refinery (MSM Sugar Refinery (Johor) Sdn Bhd) and strategic partnerships, said its group chief executive officer Syed Feizal Syed Mohammad. He said MSM seeks to penetrate deeper into China's high-potential market while consolidating its position in ASEAN, as part of its strategic move to expand its export footprint. 'We are not venturing into a new market, as China has been an established market. 'But, with increased capacity and better efficiency at our Johor refinery, MSM now has more room to produce additional volumes beyond domestic needs, making it logical to scale up exports,' he said after the company's 14th Annual General Meeting here today. He said MSM is banking on its premium quality sugar and existing ties with China Oil and Foodstuffs Corporation (Cofco Group), which is one of China's largest state-owned agribusiness (agricultural business) conglomerates and food importer, to expand sales of both refined sugar and value-added products. 'Our wide range of sugar products exports currently comprises about 15 per cent to 20 per cent of MSM's overall sales portfolio, while more than 60 per cent of the group's exports are already destined for ASEAN markets. 'With Korean companies importing our sugar and China sourcing from players like Korea, we believe we can compete meaningfully. Our products are already proven in regional markets,' he added. Syed Feizal said MSM has undertaken operational improvements to support its export ambition, with the Johor facility recently achieving 50 per cent utilisation over two continuous weeks, while the Perlis refinery is operating at 80 per cent to 85 per cent. 'The group's overall production yield has risen to 94 per cent from just 18 per cent a year ago,' he said.
