MSM clarifies pricing mechanism

Sheikh Awab: 'They practise hedging with sugar refiners to procure their sugar requirement.'

MSM Malaysia Holdings Bhd, in clearing the air on the difference in the pricing of refined sugar to consumers and large companies, says that the large industries buy in bulk and adopt a hedging mechanism to enjoy a competitive advantage.

Currently, 13 large companies in the food industry get a portion of their supply of refined sugar from local refiners at a cheaper price compared to the consumer retail price of RM2.85 per kilogramme.