KUALA LUMPUR: MSM Malaysia Holdings Bhd is looking at diversification to complement its core business in the face of low global sugar price, weakening ringgit and the issuance of more import permits.
“Currently we are exploring another revenue stream from the domestic and export markets by diversifying into various sugar-based products such as sugar premix, liquid sugar as well as other value-added and healthy sweetener products to meet growing demand of our health conscious customers in the retail and industry segments,” said chairman Datuk Wira Azhar Abdul Hamid (pix) after the group’s AGM here today.
He revealed that the group is collaborating with Felda to develop healthy low-calorie and low-glycemic index sugar and it will be available in the market before the end of next year.
He added that the group is still at the early stage of its diversification plan and it has yet to finalise the segment it will go into, but it will most likely be sweetener business.
With regards to the sugar import liberalisation announced by the government, MSM stated that it has always maintained its selling price below the RM2.85 per kilo ceiling that was set by the government five years ago and that local sugar players have always acted as a buffer against global price fluctuations.
He pointed out that the issuance of import permits will have an adverse impact to MSM as the permit holders are likely to take advantage of the current global sugar price and resume buying when the price increases.
MSM swung into the red registering a net loss of RM7.06 million for the first quarter ended March 31, 2019 against a net profit of RM15.81 million in the previous corresponding period, due to lower average selling price and higher refining cost.
Source: The Sun DailyNo tags for this post.