Guys, go research more first. Commenting based on Today, a Singapore-based newspaper does not yield justice.
Link1
"The cultivation of sugarcane in Malaysia is surprisingly small."
Link2
"... security measures had been stepped up along the border to prevent smuggling of the commodity since the sugar shortage was reported to the ministry early this month.
Prime Minister Datuk Seri Abdullah Ahmad Badawi recently ordered that stern action be taken against those who hoard sugar and raise its price."
Link3
"... Cabinet decided to maintain the price of sugar at RM1.40 per kg in Peninsular Malaysia and at RM1.50 in Sabah and Sarawak.
... the Government was not raising the price of sugar although it was “extremely low” compared with that in other countries in the region, Bernama reports. "
Link4
"Malayan Sugar Manufacturer Co Bhd (MSM) which commands 45% of the sugar market in Penang has been told to submit a monthly pre-delivery plan to the state. "
In short, sugar is a controlled item in Malaysia, they are facing shortage due to hoarders from other countries which they have no export agreements with. I would agree confiscating sugar without prior notice is extremely high handed. But this issue is different from the water issue - Singapore had a contractual water issue which broke down. This sugar issue does not have a contract to begin with.
Please, go read more. Singapore media is extremely biased and leaves out the whole picture. See the light.