The sugar price in Sabah and Sarawak is expected to be lower next year and on par with that of Peninsular Malaysia, following the opening of Admuda Sdn Bhd's RM130 million sugar refinery in Kuching.

Its Chairman, Tan Sri Abdul Aziz Shamsuddin said, the current sugar price in the two states is higher if compared with the commercial rate here, mainly due to transportation costs and accessibility.

"With this plant, we can set up networking and allow easier sugar access to the people of Sabah and Sarawak, especially in the rural areas," said Tan Sri Abdul Aziz.

The factory in Demak Laut Industrial Park is expected to be operational by the end of next year, with an initial production of 100 thousand metric tonnes per annum.

The plant is also expected to increase production to 400 thousand metric tonnes within three years of operations.

Admuda, the sole license manufacturer of refined sugar and molasses in Sabah and Sarawak, is a 60 per cent subsidiary of Brahim's Holdings Bhd.