MSM Malaysia expects sugar industry to remain challenging amid high input costs and volatile raw sugar prices
MSM Malaysia expects the sugar industry to face continued challenges in 2025 due to high costs and volatile global raw sugar prices. Acting CEO Hasni Ahmad said demand may rise late in the year, while MSM focuses on efficiency, value-added products, and policy measures to ensure food security and profitability.
Kuala Lumpur: MSM Malaysia Holdings Bhd expects the sugar sector to remain challenging in 2025 due to high production costs and unstable global raw sugar prices, which are being affected by supply fluctuations worldwide, reported The Star.
Acting group CEO Hasni Ahmad said domestic demand is likely to rise towards the end of the year, boosted by festive season consumption.
“Despite these challenges, we are strengthening our position in the local market, addressing export pricing pressures, and exploring opportunities in value-added products. At the same time, we are streamlining operations to ensure profitability,” Hasni said in a statement.
For the second quarter ended June 30, 2025, MSM reduced its net loss to RM29.7 million, or 4.23 sen per share, from RM32.4 million, or 4.61 sen per share, in the same period last year.
Revenue for the quarter slipped to RM812.7 million from RM833.1 million, mainly due to lower average selling prices in the industrial and export segments, although sales volume was higher.
In the first half of 2025, the group posted a net loss of RM26 million, compared with a net profit of RM9.3 million a year earlier. Revenue dropped 10.2% to RM1.6 billion from RM1.7 billion previously.
MSM’s capacity utilisation factor stood at 49% in the second quarter, slightly lower than 50% a year earlier, as production was reduced to manage refinery inventory. Efficiency levels, however, remained stable.
The company said it is working closely with the government through the Joint-Sugar Industry platform to establish a sustainable pricing framework and introduce import controls on refined sugar. It added that these measures are vital to protecting national food security and securing the long-term future of Malaysia’s sugar industry
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Source : Chinimandi
