MSM Malaysia Holdings Bhd

MSM Malaysia Holdings Bhd (MSM), the nation’s largest refined sugar producer under the Gula Prai brand, has posted a narrower loss before tax (LBT) of RM23 million for the second quarter ended June 30, 2025 (2Q25), an improvement from RM32 million a year ago.

The group’s performance was supported by an 18% drop in production costs, thanks to lower New York No.11 (NY11) raw sugar prices, freight charges and foreign exchange.

Quarterly revenue stood at RM813 million, slightly lower than RM833 million in 2Q24, due mainly to softer average selling prices (ASP) in the industrial and export markets. This was cushioned by higher sales volumes.

MSM recorded a capacity utilisation factor (UF) of 49% compared to 50% a year earlier, as production was deliberately curtailed to manage inventory at both refineries. However, efficiency yield remained consistent.

Acting group CEO Hasni Ahmad acknowledged the external challenges but remained confident in the group’s strategies.

“The sugar industry is expected to remain challenging in 2025, driven by sustained high input costs, volatile raw sugar prices due to fluctuating global production volumes,” he said.

“Despite these headwinds, domestic sugar demand is expected to peak towards year-end, supported by festive consumption trends. The group continues to reinforce our domestics footprint and mitigate export pricing challenges albeit steady demand and exploit value added products market opportunities. Furthermore, the group streamlining and optimising our operations to ensure profitability,” Hasni added.

MSM is working closely with the Government through the joint-sugar industry platform to finalise a sustainable pricing framework and implement refined sugar import controls — measures that it says are critical for food security and long-term industry viability. –TMR