
You see, sugar is one of the things the gov keeps under a price-control scheme. Problem is, they kinda set the price too low. Good for the people who's buying them - not so good for the gov. Because of the festivities coming up, and add to that recent news about sugar cane crop failures in India, has pushed the price of refined sugar up and up, and all the while the price of Malaysian refined sugar stays the same. In effect, Malaysian sugar is about the cheapest sugar in the world.
"Woohoo!" you say, but not quite. Thing is, we don't grow an acre of sugar cane.
We used too, but it was more profitable to convert that land into palm oil plantations so right now we're importing all the unrefined sugar from the world market (mostly Brazilian) and we refine them here. If we were to resell it, we can make a profit with the price difference, but the moment it enters the domestic market the gov subsidises the difference between the market price of sugar and the price they've set i.e. between the free market opportunity cost and the price you're paying at the shops.
At the last count, the gov subs 60sens for every kg of sugar. The annual consumption of sugar in Malaysia is 1.2 million tonnes. Not 1.2 million kgs, 1.2 million tonnes. That's 1.2 billion kilos. It includes the industrial uses of sugar (like making your Twinkies) but it's pretty much one of the highest in the world per capita. That's embarassing.
It's expensive, too. The total amount of subsidies, just for sugar alone, goes above 700 million ringgit per year. It's effectively paying Malaysians to get obese and diabetic. When people are asking where's their tax monies going to, take a look at those teh tariks - yeah, some of its right there. Thanks, fatso, for gobbling up my taxes. Yeah, you there. Don't hide behind that desk, I can see you. You're too huge to hide behind that small desk there, you're not fooling anyone.

As econs 101 tells you, when the price is low, demand goes up. In Malaysia, it doesn't work that way. If prices of goods go up, the economically-illiterate among you get pissed. When people get pissed, they don't vote for you, and no politician wants that. So politicos will institute this silly subsidy, and people (except economists) will be happy.
As I said before, we're effectively using tax-money to fund Malaysians on their quest to die-by-diabetes. I can understand why govs and politicos want to keep the subsidy, and I can understand that people want sugar (not 'need', no one needs sugar unless it's their only source of daily energy, which is a stupid excuse). I like ice kacang as much as the next guy, but I don't complain when it goes up by ten freaking sens.
What I do when people go through the 'this product is SOOO expensive' whinge is run it through what I call the Spoilt-Kid-Whining-to-Irritated-Dad model for economic behaviour. It's a Platonic dialogue and goes something like this:
"Dad, the price of sugar is SOOOOO high nowadays that I can't afford it! It's so unfair!"
"Do you really need that much
"OF COURSE DAD! I simply CANNOT survive without my 1.5 kilogrammes of sugar per day!"
Now I imagine that that kid is whingeing at me. If the kid's demand seems reasonable, say that instead of sugar, it was a more basic product like bread or rice, then I'd be understanding. 1.5 kgs of sugar per day is NOT something I can understand. If that kid came up to me with that sort of guff, I'd whack the fat off him with a particularly thick piece of stick. You may also substitute 'sugar' with 'luxury, high cc car'. I'd truncheon the fat off them, too.
In essence, it's everyone's fault. It's the gov's fault for being so appeasing that they get walked all over on by the plebs, and it's also the plebs' fault for making sugar a 'need'. It's also my fault too for not beating up more people, but that's only because I'm kind and merciful.
ps: Apparently an all-girl band 'Sugar' is more popular than sugar itself on google. Hmm.




