[889] Of from sugar shortage to sugar subsidy

The inefficiency in the sugar market has gone from bad to worse. In order to combat sugar shortage, the government now plans to import sugar at a higher cost and sell it locally at a lower controlled price:

IPOH: Malaysia has identified several sugar-producing countries in the event the item has to be imported to meet demand, especially during the festive season.

…

Shafie said if sugar was imported, the retail price would be similar to sugar produced locally but the wholesale and industrial prices might differ.

If the plan goes through, that would basically mean that the government is subsidizing sugar further, doing the same thing that is making the shortage possible. The problem would have been solved through the liberalization of the sugar market at no cost at all. Unfortunately, the government plans to undo the shortage through more expensive means.

That’s our government at work; our money mishandled.