TAWAU: Member of parliament Datuk Chua Soon Bui has called for a liberalisation of the market for sugar in order to create a healthy competition and to reduce government subsidy on the commodity.
She said the recent hike in the price of suger has put the country’s sugar price on par with Thailand although Thailand does not subsidise as much as Malaysia does.
The subsidy for sugar borne by the Malaysian government is about RM166 million per year.
“Comparison on the price of sugar with those of the neigbouring countries, we are now on equal par with Thailand at RM2.30 per kg but apparently Thailand does not subsidise as much as Malaysia does.
“I urge the government to explain to the people why Malaysia is subsidising so much on sugar as compared to Thailand based on the market sale price of RM2.30 per kg,” she said.
Chua said it was time for the government to consider opening up the sugar market in the country to a few more companies rather than it being monopolised by one company.
“The competition will be a healthier way to reduce government spending on subsidy for the consumers,” she said yesterday.
Chua said she was surprised by the recent hike in the price of sugar by another 20 sen per kilogram.
The last increase of 20 sen per kilogram was made in December last year meaning that the price of sugar had increased by 40 sen per kilogram or equivalent to 20 per cent increase within a period of six months.
“With the 10 per cent increase this time, it will have a snowball effect on sugar-related value-added products like drinks and food.
“Many of these consumer products are not price controlled. It is important for the ministry to monitor the market prices of the sugar-related products because of the newly implemented anti-profiteering bills so that consumers are spared the brunt of government policies,” she said.
She also added that the government must seek a balanced policy to ensure that the people are not burdened by the increase in the prices of any commodity.