KUALA LUMPUR: The financial incentive for sugar manufacturers is a temporary measure, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the move was to ensure continuity of supply and price of sugar for consumers.
"It also takes into account the global sugar price which is causing huge losses to local producers at the moment," he said during the winding-up of the supplementary supply bill in Dewan Rakyat today.
Amir responded to Datuk Seri Wee Ka Siong (BN-Ayer Hitam) who raised the issue of the government's decision to provide RM1,000 per tonne for coarse granulated sugar (CGS) for one and two-kilogram packs, and refined sugar for one-kilogram packs, to cover their cost losses.
Wee said; "The government has ended the sugar subsidy from Oct 26, 2013. This (referring to the answer) was from KPDN (the Domestic Trade and Cost of Living Ministry).
"In a report by The Edge, it was reported that MSM (MSM Malaysia Holdings Bhd) received RM24 million a month in November and December, from suffering losses to making a profit.
"At the same time, we imposed a tax for sugary drinks. Are we going to continue the sugar subsidy?
"Why is KPDN saying that there are no subsidies?
"What is the ministry's (Finance Ministry) direction," Wee asked.
Earlier, Wee in a Facebook post posed four questions, based on Amir's reply in Dewan Rakyat.
"I have a few questions. First, incentives instead of subsidies?
"Second, are incentives temporary? Roughly for how long?
"Third, who can explain the meaning of the report by The Edge, which says this company had gone from suffering 'losses' to making 'profit'?
"Fourth, is it true that a financial incentive of RM42 million a month has been paid to all manufacturers in Malaysia? MSM as the biggest manufacturer has received a financial incentive of RM24 million a month, are other sugar manufacturers also given financial incentives?
"Isn't financial incentive to companies, even if it is temporary, also a form of subsidy," he wrote.
