KUALA LUMPUR, 25 August 2025 – MSM Malaysia Holdings Bhd is preparing for a particularly challenging year ahead in the sugar sector, as high input costs and volatile raw sugar prices continue to test margins and operational resilience. Acting group CEO Hasni Ahmad acknowledged that global fluctuations in supply are exerting significant pressure, though domestic sugar demand is projected to firm towards the end of the year, driven by festive consumption trends.
Facing this tough backdrop, MSM is redoubling efforts to strengthen its domestic presence and navigate export pricing challenges. It is also pursuing value-added product lines and intensifying operational streamlining to preserve profitability.
Financial figures for the second quarter ending 30 June 2025 (2Q25) reflect some improvement, as the company’s net loss narrowed to RM29.7 million—or 4.23 sen per share—from RM32.4 million, or 4.61 sen per share, in the same period last year. However, revenue declined to RM812.7 million from RM833.1 million, largely due to lower average selling prices in industrial and export markets, even as sales volume increased.
For the first half of 2025, MSM posted a net loss of RM26 million, a setback compared to a net profit of RM9.3 million in the same period last year. Revenue slipped 10.2%, from RM1.7 billion to approximately RM1.6 billion.
The company’s capacity utilisation dipped slightly—49% in 2Q25 versus 50% a year earlier, as production was scaled back to manage inventory in both refineries, though efficiency yields remained stable.
In response to the environment, MSM continues its active engagement with government via the Joint‑Sugar Industry platform to finalize a sustainable pricing framework and introduce import controls on refined sugar—efforts deemed critical for safeguarding national food security and ensuring long-term viability of Malaysia’s sugar sector.
Implications for Malaysian and ASEAN Stakeholders
MSM’s proactive combination of cost control, product diversification, and strategic policy engagement underscores its commitment to navigate industry headwinds. The anticipated demand uptick towards year-end offers a silver lining, offering a glimmer of optimism amid turbulence.
As the company works to balance efficiency with market realities, its efforts with the government on sustainable pricing and import management may prove pivotal—not just for MSM, but for the broader health of Malaysia’s sugar industry.
