NO SUGAR PRICE HIKE - MINISTER

PETALING JAYA (Malaysia), Feb 24 (Bernama) -- There will be no increase in the price of sugar in the near future, Domestic Trade and Consumer Affairs Minister Shahrir Abdul Samad announced Monday.

Retailers should therefore refrain from hiking the price until the ministry
decide on the matter.

"There is no hike in the price but there may be a slight increase in the
price of sugar in certain retail shops, especially those which obtained supplies
from bigger shops.

"This is because they cannot sell the item at the stipulated price," he told
reporters after launching Nestle (Malaysia) Berhad's price-reduction campaign
at the Nestle Manufacturing (Malaysia) Sdn Bhd, here Monday.

He said that many small retailers on the outskirts of Selangor and the
Federal Territories were selling sugar between RM1.50 and RM1.70 per kilogramme.


The price of sugar is fixed at RM1.45 per kg and the last time the price was
reviewed was three years ago.

Shahrir was quoted as saying on Jan 20 that the price of sugar might be
increased after the Chinese New Year due to its higher price in the
international market.

Malaysia is importing up to 90 per cent of its sugar supply.

When told that some traders had already increased the sugar price following
his announcement in January, Shahrir said, the government would monitor the
situation and would take action against those doing so indiscrimately.

Meanwhile Nestle (Malaysia) Berhad is embarking on a price reduction
campaign since Feb 16. Under the campaign, the price of the Milo product is now
lower by between 6.4 and 8.6 per cent.

There were no price reductions for dairy products such as Everyday, Nespray
and Nesvita as well as Maggie but consumers would be given extra content of
between 8 and 12 per cent.

Present were Nestle (Malaysia) Berhad managing director Sullivan O'Carroll
and Shahrir's deputy, Jelaing Mersat. (US$1=RM3.67)
-- BERNAMA