MSM Malaysia Holdings Berhad (MSM), the country's largest refined sugar manufacturer targets to increase its annual sugar output to four million tonnes by 2020 from 1.25 million tones currently. MSM Chairman, Tan Sri Mohd Isa Abdul Samad, who is also the Chairman of Felda Global Venture Holdings Berhad (FGV) which owns a 51% stake in MSM, highlighted the success of achieving a net profit of RM254.68 million last year. TS Isa said, MSM targets to triple sugar output by 2020 is in line with the group plans to move away from being just a national player and increase its share of the global sugar market by rising its output.
He said the company's sugar product is not only popular in Malaysia, where it commands a 57% market share, but it also known in overseas markets for its quality. Apart from that, TS Isa told reporters at MSM's Hari Raya Aidil Fitri open house at Butterworth yesterday, MSM sugar is known for its quality in countries such as Singapore, South Korea, Australia, New Zealand and Pakistan. MSM export market constitutes 20% of MSM production.
MSM Holdings saw its second quarter net profit drop 15% to RM78.71 million from RM92.58 million last year, partly due to removal of the 34 sen per kg sugar subsidy last year. However, despite the removal of the sugar subsidy last October, sales volume for sugar had increased in the first half of the year. The sales volume for both the domestic and industrial sectors registered an increased from 366,700 tonnes in the first half of 2013 to 395,400 tonnes in the first half of 2014. Since FGV purchased the stake in MSM from 'sugar king' Robert Kuok in 2009, MSM is focused on consolidating its strength and reinforcing its position as the country 's leading sugar producer.