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PAPAR: The Federal Government has approved additional funding to offset the rising transportation costs of shipping 1kg and 2kg coarse white sugar packets from suppliers in the peninsula to Sabah, Sarawak, and Labuan.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the funding, set for implementation in April, aims to prevent sugar shortages in the affected regions as suppliers and manufacturers have been incurring losses due to increasing shipping costs since late 2022.

The surge in shipping expenses has been attributed to global geopolitical factors affecting crude oil prices and other economic aspects.

Previously, RM19 million was allocated annually to subsidise the transport of 187,000 metric tonnes of sugar, covering 10 sen per packet, but the new allocation has been increased to RM38 million, raising the subsidy to 20 sen per packet.

Armizan said this after attending an Ihya Ramadan event here, officiated by Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Naim Mokhtar, who also presented contributions to local mosques and suraus.