Move Aside Robert Kuok, Malayan Sugar Manufacturing (MSM) is the new Sugar King

MSM has the largest sugar refinery in Malaysia

If i were to ask most of you who is the Sugar King of Malaysia, i am sure nearly 90% would have said that Robert kuok is the sugar king of Malaysia. Unfortunately, the answer is a resounding NO. The Sugar King of Malaysia is actually Malayan Sugar Manufacturing Company Berhad (MSM), which is owned by Felda Global Ventures Holding (FGVH). 

MSM operates the MSM Facility, a sugar refinery located in Prai, Penang, on the northwest coast of Peninsular Malaysia. 

The MSM Facility is the largest sugar refinery in Malaysia and has an annual production capacity of 960,000 mt of refined sugar, representing approximately 86% of our total capacity. 

In 2011, 79% of MSM's refined sugar products by volume were sold in the domestic market, while 16% were exported and 3% were sold as "local exports" to domestic industrial customers who use sugar purchased from MSM to manufacture products for export. 

The MSM Facility is strategically located near Penang Port and has a dedicated jetty on-site that enables barges to easily and cost-effectively offload raw sugar taken from sea vessels directly into storage for use in its refining process. 

As of 2013, Malaysia sugar imports come directly from Australia, roughly about 1 Million tonnes, which is about 90% of Malaysia's raw sugar needs.  The amount of raw sugar we import can all be refined at MSM's facility in Prai, Penang. By doing this, MSM is able to ensure that the cost of producing refined sugar is kept low so that it can be sold cheaper in Malaysia compared to other countries.  

By the way, If we compare sugar prices in Malaysia against other countries in South East Asia, say Philippines, we are still cheap. Philippines, although it is one of the biggest sugar cane producer in the world,  its sugar prices is still higher than us due to very low subsidies given by the Philippine government.  

However, i do think that our government would eventually remove subsidies slowly one day to make sure that the market is liberalized so that sugar producers like MSM can unlock its true potential.  In addition, by removing the subsidies (now at around RM 400 Million annually) our government can use the money on other more important issues and development such as education, public transport and etc for the benefit of the rakyat. 

We should be ready for that.