[🇧🇩] Sugar Industry of Bangladesh

[Saif]

Date of Event: Dec 26, 2024 Source : https://thefinancialexpress.com.bd/views/opinions/reopening-state-owned-sugar-mills

Reopening state-owned sugar mills
MIR MOSTAFIZUR RAHAMAN
Published :
Dec 25, 2024 21:55
Updated :
Dec 25, 2024 21:55

Representational image Photo : Collected

The recent move to reopen six state-owned sugar mills in phases, following the recommendations of a task force, has sparked hope among thousands of workers and sugarcane growers. For years, these individuals struggled to make ends meet after the abrupt closure of the mills under the previous administration. While this move is undoubtedly a positive development, ensuring the sustainability of these mills is paramount to avoid repeating past mistakes.

The Bangladesh Sugar and Food Industries Corporation (BSFIC) oversees 15 state-owned mills, which have historically been the backbone of the country's sugar industry. Since independence, these mills were the primary source of sugar for the nation. However, over time, a combination of mismanagement, corruption, and technological stagnation eroded their production capacity. From being industry leaders, these mills gradually became inefficient, producing only around 30,000 tons of sugar annually-an insignificant amount compared to national demand.

This decline provided an opening for private sugar refineries to dominate the market. Unlike state-owned mills, private refiners operated with better efficiency and modern equipment. Over time, the BSFIC mills lost their competitive edge, allowing private companies to manipulate sugar prices and control the market. The government's inability to intervene effectively in sugar price syndication became a direct consequence of the dilapidated state of the BSFIC mills.

The reopening of these mills offers an opportunity to address these challenges, but only if the government implements a comprehensive and sustainable strategy. A superficial or hasty approach could lead these mills down the same path as the state-owned jute mills, which were reopened due to public pressure but closed again within a year due to poor planning and lack of resources.

For the reopening to succeed, the government must prioritise modernisation. The factories are in dire need of technological upgrading to compete with private refiners. This includes investing in machinery and facilities that can increase production capacity and improve the recovery rate of sugar from sugarcane. At present, the recovery rate of state-owned mills is half that of Indian mills-a gap that must be bridged.

Additionally, farmers supplying sugarcane to these mills should be provided with high-yield and high-recovery varieties of sugarcane. Collaboration with agricultural research institutions to introduce modern farming techniques and better crop varieties could significantly improve the efficiency of the supply chain.

Another critical aspect of ensuring sustainability is the efficient management of these mills. The history of state-owned enterprises in Bangladesh is marred by corruption and mismanagement, and the sugar mills are no exception. The government must enforce strict accountability measures and ensure that those engaging in corrupt practices face consequences. Transparent hiring practices, performance-based incentives, and rigorous oversight can help create a more professional and efficient workforce.

The reopening of state-owned sugar mills could also have broader economic benefits. Thousands of workers will regain their livelihoods, and sugarcane farmers will have a stable market for their crops. This could have a ripple effect on rural economies, fostering development and reducing poverty in sugarcane-growing regions.​

The government must take lessons from the failures of state-owned jute mills. Without a clear policy framework, adequate financial support, and a commitment to modernisation, the reopened sugar mills risk becoming yet another burden on the national exchequer. Proper planning, long-term investment, and stakeholder collaboration are essential to ensure these mills become profitable and sustainable.

With the right policies and investments, the reopened mills can become a symbol of resilience and progress, contributing to the nation's economic growth and self-reliance. Let this reopening be the beginning of a new chapter for Bangladesh's sugar industry-a chapter defined by efficiency, sustainability, and prosperity.

 

[Bilal9]

Sugar market: from state to private control​

Although the sugar industry in Bangladesh was dominated by some 15 state-run mills about two decades ago, it is now largely controlled by just five private enterprises.

Even then, just two of these five business groups, namely the Meghna Group of Industries (MGI) and City Group, accounted for roughly 70 percent of the 17 lakh tonnes of raw sugar imported in 2023.

MGI imported a majority 40.5 percent while City Group imported 28.5 percent of the raw sugar, according to data of the Chattogram customs house.

The third-largest importer of the sweetener was S Alam Group, which catered to about a fifth of the country's demand for sugar in 2023.

The other two private enterprises -- Abdul Monem Ltd and Deshbandhu Sugar Mills -- accounted for the remaining raw sugar imported that year.

Now, these five companies are enjoying an oligopoly in the sugar market, which was worth more than Tk 9,000 crore in fiscal year 2022-23, as they have expanded their refining capacities to meet increasing demand.

On the other hand, the Bangladesh Sugar and Food Industries Corporations (BSFIC), which manages all state-run sugar mills in the country, gradually reduced production across its facilities.

This was mainly due to the ongoing decline of domestic sugarcane cultivation, raising concerns among many that the increased dominance of import-reliant private firms could be detrimental to consumer interests.

At present, five private sugar mills cater to more than 98 percent of the country's 20 lakh tonnes annual requirement for refined sugar, with the raw sugar mostly sourced from Brazil.

Market insiders say the government lost its monopoly on the sugar market after allowing private sector enterprises to establish their own refineries in 2003.

Before that, refineries under the BSFIC would collect raw sugar from certified plantations before distributing the refined sugar through its dealers across the country.

"At the time, annual demand for sugar stood at around just two or three lakh tonnes. So, it was easy for the BSFIC to cater to the market and keep it stable," said Abul Hashem, president of the Bangladesh Sugar Merchants Association.

However, the government was eventually forced to allow private companies to enter the market to meet increasing demand amid shrinking sugarcane cultivation.

"Later, the entire market gradually went into the hands of five companies," said Hashem, who has been engaged in the sugar trade for the past three decades.

City Group, one of the country's largest commodity importers and processors, started its sugar refining operations in 2006. Now, the company has a daily production capacity of around 5,000 tonnes.

MGI had started refining sugar that same year through its concern United Sugar Mills, which initially began with a daily production capacity of around 900 tonnes. It is now 5,000 tonnes.

Officials of both Meghna Group and City Group informed that they gradually increased their production capacities and control over the market, with the two enjoying a combined 34 percent share of the market in 2018.

Their dominance only expanded in subsequent years as production at state-run mills continued to fall.

Production at state-run mills declined to 25,000 tonnes in fiscal year 2022-23, down by 87.5 percent compared to 2 lakh tonnes in 2001-02, as per data of the Bangladesh Economic Review.

Additionally, the BSFIC shut six of its sugar mills in 2020 in a bid to reduce losses.

A top official of a private refinery said the lack of land for sugarcane cultivation was one of the main reasons for declining production at state-run mills.

Although the private sector's entry to the sugar market has contributed to ensuring a stable supply of the sweetener, there is a risk regarding import-dependence.

At present, local refiners mainly import raw sugar from Brazil as India has banned shipments.

"This single country dependence makes the industry vulnerable to price volatility," said Taslim Shahriar, deputy general manager of MGI.

"Companies with diversified businesses can absorb shocks. But it would not be sustainable if any company refines and sells sugar alone," he added.

Ghulam Rahman, president of the Consumers Association of Bangladesh, said it is unfortunate for Bangladesh that only a small number of firms control the market for most products.

"Here, one solution could be expanding the market operations of state agencies but there is risk of corruption and sluggishness in the decision-making process," he added.

 

[Bilal9]

City Group, a leading conglomerate in the country that holds significant sugar market share, wants to export sugar as the international market for the widely used sweetener surges.

Although the Commerce Ministry granted approval for City Group to export refined sugar three years ago, the company could not ship sugar within the timeframe.


Now the local sugar refiner seeks to capitalize on that scope as the conglomerate has applied to extend the previous export deadline till June 30, 2024

Fazlur Rahman, managing director of City Sugar Industries, a subsidiary of City Group, submitted the request to the Commerce Ministry on October 10.

However, a source at the ministry said they were not in favor of exporting sugar at this moment as the local market has been facing a supply shortage, pushing prices up by 58% in just one year.

The Commerce Ministry allowed the group to export 47,300 tonnes of sugar in October 2020.

The tenure of the shipment was until June 2021.

City Group now claims that "export demand for sugar has increased in different countries in Asia, Europe, Africa and the Middle East", as mentioned in the letter sent to the ministry.

Five private refineries in the country have been selling sugar after refining raw sugar imported from the global market.

Currently, the daily production capacity of the refineries is over 10,000 tonnes.

The annual demand for sugar in Bangladesh is 2-2.2 million tonnes.

Some 2.2-2.4 million tonnes of raw sugar are imported annually.

More or less 50,000 tonnes of refined sugar are imported annually, according to the Bangladesh Trade and Tariff Commission.

Currently, sugar prices are much higher in the retail market, even though the government fixed the maximum retail price of the essential commodity to control the rising trend of the mass-consumed typical sweetener.

The item is at Tk130-Tk 135 per kg in different markets in Dhaka city, according to the daily market price data of the Trading Corporation of Bangladesh.

 

[Saif]

Workers happy as Setabganj Sugar Mills prepares for reopening

Setabganj Sugar Mills in the northern district of Dinajpur is preparing to reopen after a four-year closure, a move that has been cheered by former factory workers and local sugarcane farmers.

www.thedailystar.net

Workers happy as Setabganj Sugar Mills prepares for reopening
Authorities expect the mill to be fully operational in two years

Setabganj Sugar Mills in the northern district of Dinajpur is preparing to reopen after a four-year closure, a move that has been cheered by former factory workers and local sugarcane farmers.

Mohammad Abul Bashar, managing director of the mill, said the mill is currently waiting for repairs to production units and assessing the sugarcane supply.

He said that crushing operations may resume either this year or in the next season in fiscal year 2025-26.

"Sugarcane planting for the 2024-25 season has already begun," the MD said. "If we miss that, then the mill will resume in the 2025-26 season after repair and overhauling."

"We expect the mill to be fully operational within two years if planting and repairs proceed smoothly," he added. "Repair work will begin soon."

There are 15 public sugar mills in the country under the Bangladesh Sugar and Food Industries Corporation (BSFIC). In 2020, the previous Awami League government suspended production at six mills, including Setabganj, citing a shortage of sugarcane supply and recurring losses.

Authorities at the time said these mills would reopen after upgrades and modernisation.

After the political changeover in August 2024, the interim government formed a taskforce to assess the mills. Subsequently, the reopening of Setabganj Sugar Mills was announced in mid-December last year.

Amjad Hossain, a former president of the Setabganj Sugar Mills Workers' Union, said, "After working here for 27 years, the abrupt decision of mill closure frustrated me. Now it is reopening and we are happy about it."

Prashanta Kumar, another worker, said they are grateful to the government for the reopening decision. "We are looking forward to resuming crushing operations as soon as possible."

Established in 1933 on 3,783 acres of land at Bochaganj municipality area, Setabganj Sugar Mills closed in 1975 due to deteriorating financial conditions but reopened in 1982 after modernisation and upgrades.

The annual production capacity of the sugar mill was 12,500 tonnes. Apart from sugar, the mill produced organic fertilisers, molasses and bagasse as byproducts.

It continued operating until the 2019-2020 season before being shut down again.

Local sugarcane farmers blamed politically motivated factors for the mill's closure.

Md Wali, one of the farmers, alleged, "The mill was fully operational when it was shut down. Certain groups conspired to capture its assets."

Mamun, general secretary of the Sugarcane Farmers' Association, said that sugar production was never halted due to a lack of supply from the farmers.

"Production costs were artificially inflated for showing higher losses," he claimed.

With the reopening announcement, Mamun said farmers are now preparing for the next planting season.

Industries Adviser Adilur Rahman Khan visited the sugar mill on November 16 last year.

He said his ministry would lend full support for resuming cane crushing.

Bangladesh annually requires 24 lakh tonnes of sugar and because of scanty domestic production of sugarcane, imported sweetener meets around 99 percent of the total requirement.

Five private refiners import raw sugar, mainly from Brazil, to process and market locally.​

 

[Saif]

Revitalising the sugar industry

In the pre-1947 era, when East Bengal had little to no industrial presence, the region still boasted three sugar mills in Darshana, Dinajpur, and Kishorganj. If this historical foundation in sugar production is considered an advantage in terms of expertise and managerial experience, one might have

thefinancialexpress.com.bd

Revitalising the sugar industry
Atiqul Kabir Tuhin
Published :
Jan 08, 2025 21:51
Updated :
Jan 08, 2025 21:51

In the pre-1947 era, when East Bengal had little to no industrial presence, the region still boasted three sugar mills in Darshana, Dinajpur, and Kishorganj. If this historical foundation in sugar production is considered an advantage in terms of expertise and managerial experience, one might have expected the country to achieve significant progress in this sector over the past 77 years, including self-sufficiency in sugar production.

The reality is quite different, however. Bangladesh now imports sugar in large quantities, and its citizens pay significantly higher prices compared to those in neighbouring countries, such as India. The country's estimated annual sugar demand is around 2.4 million tonnes, but local production accounts for only about 30,000 tonnes. This means Bangladesh is almost 99 per cent dependent on imports to meet the increasing demand for this essential food ingredient.

Moreover, the price of sugar in Bangladesh has skyrocketed from about Tk. 60 to Tk. 140 per kilogram in just three years. Ironically, Bangladesh imports sugar from India at a price of Tk. 70 per kilogram, while smuggled Indian sugar is sold in border areas for around Tk. 90 per kilogram.

This boggles the minds of average Bangladeshis if India can produce and offer sugar at such a low cost, why can't Bangladesh? Bangladesh and India share almost similar climatic and economic conditions. So, when India's sugar mills thrived, why have Bangladesh's mills been struggling to survive? It is not that there is a lack of demand for locally produced sugar in Bangladesh. In fact, locally produced red sugar is considered healthier than imported refined white sugar. Then, why are the country's sugar mills in such a dismal state?

It is true that the number of the country's sugar mills rose to 15 from three to four during the pre-independence era. But the sector remained sick because of long neglect, mismanagement, lack of modernisation and corruption of all sorts. All the sugar mills are in the public sector, and all are running at a loss, becoming a significant drain on the national exchequer.

In 2020, six of these 15 mills were shut down due to mounting losses and rising public debt. The mills owe thousands of crore taka to different banks. The closure of these mills not only left thousands of people jobless but also dealt a severe blow to the rural economy, as the livelihoods of hundreds of thousands of sugarcane farmers are closely tied to the fate of these mills located in sugarcane-producing areas such as Pabna, Kushtia, Rangpur, Panchagarh, and Dinanjpur. But still, many supported the government's decision to close some of the mills, considering that keeping them afloat by providing huge amount of subsidies - especially when a portion of the subsidised funds was being misappropriated - was simply unsustainable.

Of late, the interim government has announced plans to reopen the closed state-run sugar mills to reduce import dependency and create economic opportunities in local areas. During a recent visit to Setabganj Sugar Mill in Dinajpur, Industries Adviser Adilur Rahman Khan stated that the mills would be reopened in phases, with a dedicated task force overseeing the process. He said that Tk. 12 million had already been allocated to incentivise sugarcane farmers, with another Tk. 10 million expected to be disbursed soon.

The revival of these mills is undoubtedly a prudent decision; however, the government must conduct a thorough feasibility study before reopening them to ensure their profitability and sustainability. In their current state, the cost of sugar production is excessively high due to outdated machinery, and most mills rely heavily on government subsidies to survive. While the current high sugar prices may provide temporary relief, such measures are not sustainable in the long term.

Some of the mills are more than half a century old. Production process of the mills is also inefficient. The recovery rate from sugarcane is among the lowest in the world due to inefficient extraction and outdated equipment. For instance, as experts pointed out, sugar mills in Bangladesh can extract only 5 kg of sugar from 100 kg of sugarcane, compared to 10 kg in India.

The lack of timely investment has stalled modernisation efforts in the sugar industry. With upgraded technology and equipment, the extraction rate could be increased, making the sector far more productive and competitive.

Apart from this, the viability of sugar mills can be significantly enhanced through the industrial use of by-products. The sugarcane fibre called bagasse has multiple industrial uses including power generation. Similarly, molasses, another by-product, can be processed into various products such as alcohol, varnish, sanitizer, ethanol, baker's yeast, and vinegar.

Sugarcane is a versatile crop with its applications going far beyond sugar production. For instance, in Japan, sugarcane derivatives are used to produce specialised medicines. The waste material left after processing can be combined with press mud to create organic fertilizers, further adding value. So, the losses in the sector could be mitigated by adopting practices that maximise the value of by-products.

To increase productivity of state-run sugar mills, modernising mills is crucial, but an urgent overhaul of the management is equally important. However, ensuring dynamic and corruption-free management in state-owned organisations remains a significant challenge. The Bangladesh Sugar and Food Industry Corporation (BSFIC) under the Ministry of Industries is tasked with developing the sugar industry. Its objectives include increasing sugar production, diversifying by-product production, improving sugar quality, expanding market reach, and ultimately achieving profitability. The performance of the BSFIC, however, has not been up to the mark, to say the least. Without a dynamic and corruption-free management, the chances of BSFIC effectively contributing to the growth and development of the sugar industry are slim. Moreover, unless the structural and management issues are addressed, the reopened mills risk reverting to their previous unproductive state.

It is hoped that all these factors will be considered, and a well-thought-out decision will be made to ensure a profitable and sustainable production of reopened sugar mills, benefitting workers, farmers, and the economy at large.​

 

[Saif]

Japanese funds to revive closed sugar mills

The government has launched an initiative to modernise and revive six shuttered sugar mills, aiming to transform them into profitable enterprises through public-private partnerships and advanced technology.

www.thedailystar.net

Japanese funds to revive closed sugar mills

The government has launched an initiative to modernise and revive six shuttered sugar mills, aiming to transform them into profitable enterprises through public-private partnerships and advanced technology.

Citing operational inefficiencies, the mills were shut down by the previous Awami League government in December 2020.

According to the Ministry of Industries, the Bangladesh Sugar and Food Industries Corporation (BSFIC) is holding discussions with international firms to develop a modernisation and rationalisation plan for these units.

This brings forward a proposal on forming a joint venture and a potential finance by Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Thailand (EXIM). The majority of the fund may come from JBIC.

On March 16, the ministry sought the opinion of the Bangladesh Investment Development Authority (Bida) on the initiative as private and foreign direct investment would be involved.

In July last year, it was announced that a memorandum of understanding (MoU) had been signed between the BSFIC and the controversial S Alam Group, aimed at modernising the state-run sugar mills.

However, following the ouster of the Awami League government in August last year and the S Alam Group landing into hot water subsequently, the interim government walked away from that deal.

Last month, United Arab Emirates-based Sharkara International (FZC), Thailand's Sutech Engineering Company Ltd, and Japan's Marubeni Protechs Corporation presented a proposal to the industries ministry, expressing interest in forming a joint venture to overhaul the factories.

In October 2019, the BSFIC signed a memorandum of understanding with the three to establish energy-efficient, technology-based and environmentally friendly sugarcane and export-oriented alcohol industries in Bangladesh.

But the proposal remained stuck at the Prime Minister's Office since.

An industries ministry official said the latest proposal appears suitable for modernising shuttered sugar mills and making them profitable.

"We have already shared a letter with Bida as their opinion is mandatory for such investments," the official added. "The sector has the potential to be profitable again, but it requires urgent technological and management improvements."

Ashik Chowdhury, executive chairman of the Bida, told The Daily Star that it was not the government's role to engage in business, stressing that loss-making entities should be managed by the private sector to enhance competitiveness and efficiency.

He highlighted that privatising the sugar industry would save the government significant funds lost due to inefficiencies. "The private sector is better equipped to run such industries efficiently," he said.

As such, Chowdhury welcomed the Ministry of Industries' efforts and confirmed that the Bida was actively collaborating with the ministry to attract foreign investors to take over and manage these businesses.

According to a letter sent from the Ministry of Industries to Bida, the proposed project would see the revival of the six closed sugar mills either through full government ownership or a joint venture between the BSFIC and private investors.

The Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Thailand (EXIM) will provide loans for the purchase of equipment and designs from abroad while the Bangladesh government will fund local construction and infrastructure.

Under the proposal, Sharkara, Sutech, and Marubeni will contribute technological expertise, modern equipment, and management services for the mills.

A local representative of the investors, speaking on condition of anonymity, told The Daily Star that reviving the sugar mills would support local sugarcane farmers by ensuring stable demand for their crops.

"A well-functioning local industry can provide farmers with fair prices and a consistent market, boosting the agricultural sector," the representative said, adding that investors might inject around $1 billion and focus on creating a separate world-class food packaging industry if the government acts swiftly.

"The revival of sugar mills will not only generate employment but also benefit thousands of farmers who depend on sugarcane cultivation for their livelihoods."

Sources at the Ministry of Industries said that the government is currently reviewing proposals from the international consortium to finalise the structure of the partnership and financing agreements.

The Bida is also assessing the investment potential and regulatory aspects of the project.

Mohammad Mujibur Rahman, secretary to the BSFIC, said he was not fully aware of the latest updates on the initiative but reaffirmed that their goal is to create a sustainable and competitive sugar industry that benefits all stakeholders.

"If successfully implemented, this project could mark the beginning of a new era for the country's sugar mills, making them more efficient, competitive, and profitable," he concluded.

Bangladesh's sugar industry has long faced challenges such as outdated machinery, declining demand for locally produced sugar, and financial losses. As a result, the BSFIC, which oversees 15 sugar mills in the country, has been burdened with heavy debt.

The modernisation project is expected to bring several economic benefits, including creating jobs and reducing dependence on imported sugar. However, experts argue that the remaining nine mills will continue to suffer losses unless modernisation efforts are undertaken.​

 

[Saif]

Taking a hard look at sugar mills' liabilities

In medical science, amputation becomes the only option when a limb is so severely damaged or infected that it poses a direct threat to the patient's overall health and survival. This decisive measure prevents the spread of infection, isolating the problem to protect the rest of the body. The situat

thefinancialexpress.com.bd

Taking a hard look at sugar mills' liabilities
FE
Published :
Mar 23, 2025 23:21
Updated :
Mar 23, 2025 23:21

In medical science, amputation becomes the only option when a limb is so severely damaged or infected that it poses a direct threat to the patient's overall health and survival. This decisive measure prevents the spread of infection, isolating the problem to protect the rest of the body. The situation with Bangladesh's state-owned sugar mills bears a striking resemblance to this medical incumbency. Chronically plagued by mismanagement, financial irregularities, and a lack of modernisation, these mills have been left to deteriorate by successive governments. As a result, they are now creating a ripple effect in the broader financial sector. Their accumulated unpaid loans have accumulated to a staggering Tk 105.18 billion-and continue to grow-posing a serious risk to the financial health of some state-run banks. These loans, provided under state guarantees, are straining the banks' asset quality, increasing their provision shortfall, and damaging their international reputation. This, in turn, raises the cost of the banks' international trade and ultimately erodes profitability. The banks, therefore, are now demanding repayment of these loans, including accrued interest, or the issuance of government bonds to cover the outstanding liabilities.

In the past, the government had issued treasury bonds to settle the debts of the Bangladesh Petroleum Corporation and the Bangladesh Jute Mills Corporation. A similar approach now seems likely for the Bangladesh Sugar and Food Industries Corporation (BSFIC). While issuing bonds may help banks recover their non-performing loans in the sugar industry, it does not address the underlying problem. Ultimately, the burden of these ever-growing debts will fall on the government. The prospect of financial viability of state-owned sugar mills is bleak.

The mills have been incurring a loss of about Tk 140 for each kilogram of sugar with the production cost reaching at Tk 300 as against the selling price of Tk 160 (Brown Sugar). Naturally, sales remain stagnant, leading to an unsold stockpile, as imported raw sugar is significantly cheaper. It happens because production process of the mills is inefficient. Recovery rate from sugarcane is among the lowest in the world.

Beyond incurring financial losses, the sugar mills have failed to fulfil their stated objective. The objective was to safeguard sugar from private-sector monopolies through state intervention. However, the mills have had little to no influence on the market. Bangladesh's annual sugar demand is estimated at around 2.4 million tonnes, yet domestic production is just 30,000 tonnes-barely 1.0 per cent of the requirement. Consequently, the country is almost entirely dependent on imports to meet demand. Worse still, the government often imposes high import duties on raw sugar, seemingly to offset the mills' financial losses, thereby pushing up domestic sugar prices.

Maintaining these mills in their current state, therefore, is not only economically unsustainable but also counterproductive. But shutting down the mills remains a politically sensitive issue, as it would leave thousands of employees jobless. The fate of hundreds of thousands of sugarcane farmers is also tied to the state of the mills, even though sugarcane acreage in areas surrounding the mills has long been declining due to deteriorating health of the sugar mills. Nonetheless, continued subsidies in the form of state-guaranteed loans-poured into what is essentially a bottomless basket-make no economic sense. A decisive course of action is required. The sugar mills must either be divested, with assets auctioned and liabilities settled, or privatised to allow for restructuring and revitalisation under more efficient management. The government must perform the necessary surgery swiftly to prevent the state's financial haemorrhage spreading further.​