Ministry Studying Proposed Sugar Subsidy Withdrawal

December 01, 2009

KUALA LUMPUR, Dec 1 (Bernama) -- The Domestic Trade, Cooperatives and Consumerism Ministry is studying whether to withdraw the sugar subsidy as proposed by various quarters to reduce sugar consumption among Malaysians.

Its minister Datuk Seri Ismail Sabri Yaakob said the ministry viewed the proposal seriously and the question of whether to abolish the sugar subsidy would be discussed at the Cabinet level soon.

"We (ministry) are studying whether to reduce or abolish the sugar subsidy. We admit that the subsidy given by the government is high," he told reporters after launching a campaign to reduce sugar intake among consumers organised by the Consumers Association of Penang (CAP), here, today.

Ismail Sabri said this year the government had allocated RM720 million for the sugar subsidy so as to maintain the price at RM1.45 per kilogramme.

However, he said, the sugar price might reach RM2.45 per kg next year if the ministry decided to abolish the subsidy.

"Among the factors considered for the proposed subsidy abolishment is that Malaysia is the only country that gives sugar subsidy to its people, besides encouraging them to live a healthy lifestyle by consuming less sugar," he added.

Earlier at the function, CAP president S.M. Mohd Idris urged the government to abolish the sugar subsidy which incurred a high cost for the government.

Recently, several other consumers associations also proposed the same.

-- BERNAMA