Latest news with #SyedFeizalSyedMohammad
New Straits Times
20 hours ago
- Business
- New Straits Times
MSM's response to ministry's clarification on new levy on raw sugar
KUALA LUMPUR: MSM Malaysia Holdings Bhd (MSM) welcomes the timely clarification by the Finance Ministry today regarding the sales and service tax (SST) treatment of raw sugar imports. The ministry's statement confirms that while a 5.0 per cent SST will apply to raw sugar, a key input for refined sugar production, refiners may apply for tax exemptions under prescribed conditions. This clarification follows MSM highlighting the potential significant cost pressures arising from the expanded SST regime during its annual general meeting (AGM) on Thursday. The group had said the input cost increases could impact refined sugar pricing, which could push up prices of refined sugar for industrial buyers. MSM, in a statement today, said the ministry's prompt attention to the matter is especially important in the current challenging operating landscape, where retail sugar prices have remained capped at RM2.85 per kilogramme since 2011, despite significant increases in global raw sugar prices in recent years. MSM group chief executive officer Syed Feizal Syed Mohammad said the ministry's confirmation of an exemption application mechanism provides much-needed clarity and flexibility for refiners like MSM. "This enables us to proactively manage input costs and mitigates immediate pressure on refined sugar prices, while continuing to fulfil our role in the national sugar supply chain under the existing retail price framework," he added. The group remains committed to working closely with the government and all stakeholders to ensure minimal disruption to the supply chain and stable pricing for essential food industries. While input cost management remains a priority, MSM assures customers and partners of its relentless focus on operational efficiency and fair pricing. "We are confident that the exemption mechanism will contribute positively to safeguarding the competitiveness of Malaysia's food manufacturing sector," the company said.
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
No reason to hike sugar price, finance ministry tells MSM Malaysia
MSM Malaysia is one of two sugar refineries in the country, the other being Central Sugars Refinery Sdn Bhd. (Bernama pic) PETALING JAYA : The finance ministry has urged sugar manufacturer and refinery MSM Malaysia to refrain from hiking the price of white sugar once the revised sales and service tax (SST) takes effect next month. The ministry said that MSM Malaysia was eligible to apply for tax exemptions for raw sugar and was benefitting from monthly incentives from the government to ensure stable supply and prices. 'Refiners and manufacturers of sugar in Malaysia can seek exemption on their upstream costs. This is provided for under Item 1, Column (2), Schedule B of the Sales Tax (Persons Exempted from Payment of Tax) Order. 'Therefore, there should not be any increase in price for refined sugar,' it said in a statement today. MSM Malaysia is one of two sugar refineries in the country, the other being Central Sugars Refinery Sdn Bhd. The ministry also reiterated that white sugar would remain untaxed in the new SST scheme as it falls under the category of essential goods, to avoid inflating the cost of living for the majority. Yesterday, MSM Malaysia's group CEO Syed Feizal Syed Mohammad said that the new 5% SST on raw sugar was expected to put pressure on input costs and push up refined sugar prices for industrial buyers. He said MSM was seeking clarification from the government regarding the new tax scheme, which kicks in on July 1, The Edge Malaysia reported.
The Star
a day ago
- Business
- The Star
MSM Malaysia aims to increase export volumes
MSM Malaysia GCEO Syed Feizal Syed Mohammad. 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 added that MSM Malaysia 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 AGM here yesterday. He said MSM Malaysia is banking on its premium quality sugar and existing ties with China Oil and Foodstuffs Corp, 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% to 20% of MSM Malaysia's overall sales portfolio, while more than 60% of the group's exports are already destined for Asean markets. 'With South Korean companies importing our sugar and China sourcing from players like South Korea, we believe we can compete meaningfully. — Bernama
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
