SUGAR PRICE IN SABAH, SARAWAK TO BE ON PAR WITH PENINSULAR

Sugar price in Sabah, Sarawak to be on par with Peninsular

KUALA LUMPUR 17th August, 2012: The sugar price in Sabah and Sarawak is expected to be on par with that of Peninsular Malaysia soon, following the opening of Admuda Sdn Bhd’s RM130 million sugar refinery in Kuching.

Admuda Chairman, Tan Sri Abdul Aziz Shamsuddin said at present the sugar price in the two states is higher compared with the commercial rate in the Peninsular, mainly due to transportation and ease of doing business.

Admuda, the sole licensed manufacturer of refined sugar and molasses in Sabah and Sarawak, is a 60 per cent subsidiary of Brahim’s Holdings Bhd.

“The factory in Demak Laut Industrial Park is expected to commence operations by the end of next year, with an initial production of 100,000 metric tonnes per annum.

“We are looking to increase production to 400,000 metric tonnes within three years of operations.

“This is given the demand for sugar in the region (Sabah and Sarawak) at more than 350,000 metric tonnes per annum,” Abdul Aziz said.

He was speaking to reporters after the financing facility agreement signing ceremony between Admuda and Maybank Bhd here, yesterday.

The ceremony was witnessed by the Deputy Minister of International Trade and Industry, Datuk Mukhriz Tun Dr Mahathir.

The sugar refinery will be the fifth such production facility in Malaysia, and the first to be constructed in Sabah and Sarawak.

Abdul Aziz said at present, if a packet of sugar is sold in the Peninsular for RM2.30, it is priced at RM2.40 in Sabah and Sarawak.

“That is the price in the main towns and cities of Sabah and Sarawak. It could be much more expensive in the interior,” he added.

The current sugar requirements of Sabah and Sarawak are being met via imports from the Peninsular.

Abdul Aziz said Admuda will also lend a hand, if needed, to cater for the sugar needs of the Peninsular.

Admuda’s sugar, commercially marketed under the Borneo Sugar brand, is expected to penetrate more than 30 per cent of Sabah and Sarawak market, within the first year of operations. —Also, within the first year of operations, the sugar refinery is expected to contribute about 10 per cent growth in revenue for Brahim’s, Abdul Aziz said.

Besides Maybank as the project financier, Admuda has roped in Thai Roung Ruang Sugar (TRR) Group as the project’s technical partner, for the construction of the refinery and supplier of raw sugar.

With seven facilities in Thailand, TRR is one of the largest and most established sugar producers and exporters in that country.