INSIGHT

Malaysia Sugar Refinery Industry

Author: Admin Publish Date: 02-09-2019
Updated On:  18-11-2019




If we look into the history of human civilizations, we could clearly see that gold and sugar are commodities that had some of the greatest impacts on the development of our modern culture.
 
Sugar, originated in the South Pacific and its Europe distribution was once strictly controlled by the traders by the 13th Century, it was a status symbol for only the most wealthy - the royal houses of Europe. It was so rare that it was worth more than gold.
 
As sugar was much needed and very expensive, colonists from entire Europe flocked to the New World on the west and established thousands upon thousands of sugarcane plantations that were in dire need of cheap workforce. To fill that need, African slave trade entered into high gear, delivering millions upon millions of African slaves to South, Central and North America.
 
And so, sugar entered 20th and 21st century. It’s cheap, the absolute majority of the world use it regularly, and there is no indication that we will ever stop to use it.
 
Back to Malaysia landscape, many F&B manufacturers have taken a step to reduce sugar in their products, ahead of the government’s move to implement a sugar tax starting in July 2019. At the same time, we are seeing more refined sugar import licenses being issued by the government to F&B manufacturers, which could impact the duopoly of Malaysia refineries. F&B manufacturers are now able to access cheaper sugar then what is offered locally.

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