#KLChronicle says : We would like to take this opportunity to thank MSM Malaysia Holdings Berhad, a company which is owned by FELDA and helmed by Tan Sri Isa Samad for not getting into an agreement with Al Khaleej International Ltd.
As we all know, sugar is a precious commodity where it is consumed in high numbers throughout Malaysia and South East Asia. The price of sugar is also very sensitive to Malaysian as it is one of many controlled items where its prices are subsidized by the Goverment.
In allowing Al-Khaleej to partner MSM, there would be an interference by 3rd parties on how us (Malaysian) manage our sugar industry. Notwhitstanding the above, MSM would also need to share its technological advancements with a direct partner/competition which is not wise.
Therefore, the decision to terminate the pact with Dubai's Al Khaleej International Ltd to build a sugar refinery in the southern state of Johor is a wise and correct move by MSM.
Article from The Malaysian Insider below:
Malaysia's largest refined sugar manufacturer MSM Malaysia Holdings Berhad will terminate a pact with Dubai's Al Khaleej International Ltd to build a sugar refinery in the southern state of Johor, the firm said today.
In a filing to the local bourse, MSM said it will not proceed the non-binding memorandum of understanding with Al-Khaleej signed on May 8, 2014 to form a joint venture company to build the sugar complex.
"... due to the fact that this project is of national interest, MSM has decided to undertake the construction of a sugar refinery complete with logistic complex and vessel terminal in Tanjung Langsat, Johor without partnership," MSM said, without giving further details.
MSM was to hold a 51% controlling stake in the joint company, with Al Khaleej holding 49%. Local newspaper The Star earlier reported that the project, targeted for completion in 2016, was to cost between US$250 to US270 (RM905 million).
Al Khaleej is a limited company within the Al Ghurair conglomerate, of which also includes Al Khaleej Sugar, a Dubai-based sugar refiner. – Reuters, February 18, 2015