Malayan Sugar Mill is confident that its performance will improve further next year as domestic sugar demand recovers and its sugar refinery in Johor returns to profit. Demand for sugar in Malaysia is recovering as the government loosens control and the COVID-19 vaccination program is advanced. Earnings are expected to pick up 5-10 percent in the first half of next year, with another 5-10 percent rise in the second half.
The Malaysian market, which used to use 1.5 million tonnes of sugar a year, is now down to 1.2 million to 130 tonnes due to the pandemic, but demand has started to pick up.
Malayan Sugar Mill Currently manages two sugar refineries, one in Selangor and one in Johor, with overall capacity utilization expected to reach 65% this year.
Malayan Sugar Mill received export orders for 360,000 tonnes this year and expects to complete the delivery by the end of the year, with a further 450,000 tonnes expected next year. The annual consumption of sugar in the Asia-pacific region is 4 million tons. The market demand is strong and stable, and export orders will never be reduced.
Bad weather in Brazil and other major sugar-producing countries have hurt production, keeping supply tight on the international market and pushing prices higher. International sugar prices have been trading in a range of 19 to 19.5 cents a pound, even falling below 19 cents at one point. But they are still on the high side in general and may not change much in the short to medium term, with prices staying high.