On October 31 2009 PPB Group under the flagship of Robert Kuok issued a statement to the Bursa Malaysia that it decided to dispose of its sugar units along with land used to cultivate sugar cane for RM 1.29 billion to Felda.The sales resulted in a one-off gain for the company.The sugar unit and sugar cane plantation were the second largest business segment upon its grain and feed which were topping the sales.
While under the "Sugar King of Asia", sugar prices were placed under the Supply Control Act 1961 and the Price Control Act 1946.
About 2 months later, after the shares and land are sold to Felda:
Prices of sugar jumps up.
PUTRAJAYA, Dec 31 — Sugar will cost 20 sen more per kg from tomorrow, with the new price being RM1.65 in the peninsula and RM1.75 in Sabah and Sarawak, it is announced today.
Domestic Trade, Cooperatives and Consumerism Ministry secretary-general Datuk Mohd Zain Mohd Dom, who made the announcement, said the government would also withdraw its subsidy on white bread from tomorrow, and remove the commodity from the price control scheme.
Questions arise as to why Robert Kuok would even consider letting go of such a lucrative oligopoly business, for a relatively measly sum of 1.29bil? Also, why only after the acquisition of the assets by Felda, why is sugar 'removed from the price control scheme', resulting in the prices takeing a spike? A coincidence?
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