MALAYSIA - BAT sees challenging year..

Tak nak = Don'tr Want..

APRIL 20, 2011 PETALING JAYA: British American Tobacco (M) Bhd (BAT Malaysia) expects its challenging operating environment to continue this year. BAT Malaysia chairman Tan Sri Abu Talib Othman said the challenge was still declining volumes, in view of the high government excise tax which has led to an increase in the trade of illicit cigarettes.

BAT Malaysia managing director William Toh reiterated that two surveys conducted last year by the Confederation of Malaysian Tobacco Manufacturers showed that illicit trade comprised 38.2% of the country's total cigarettes market.

“This is a sizeable portion of the market for us to tap if we can resolve the illicit cigarette trade issue,” said Toh after the group's 50th AGM yesterday.PETALING JAYA: British American Tobacco (M) Bhd (BAT Malaysia) expects its challenging operating environment to continue this year.

“This is a sizeable portion of the market for us to tap if we can resolve the illicit cigarette trade issue,” said Toh after the group's 50th AGM yesterday.


BAT Malaysia chairman Tan Sri Abu Talib Othman said the challenge was still declining volumes, in view of the high government excise tax which has led to an increase in the trade of illicit cigarettes.



“This is a sizeable portion of the market for us to tap if we can resolve the illicit cigarette trade issue,” said Toh after the group's 50th AGM yesterday.

Toh added that prices of cigarettes in Malaysia was the third highest in Asean countries, after Singapore and Brunei.

Last year, the group took advantage of duty savings under the by sourcing wrapping materials and tobacco leaves from neigbouring countries like Thailand and Indonesia.

“Tobacco leaves from Indonesia is much cheaper compared with non-Asean countries. But we still support local tobacco growers although Malaysian leaves is among the most expensive in the world.

“We are still the biggest buyer of Malaysian tobacco in the country,” said Toh.

This year, the group aims to double its export volume to 30% of its annual production.

Toh said new contract customers this year are BAT Australia, New Zealand and Japan.

“This is in addition to our exports to Hong Kong and Taiwan as well as for duty-free retail. Exports should contribute about 5% or 6% to group revenue this year.”

BAT Malaysia is also looking to sell its machines, which were used to produce 14-stick packs (banned in June last year), to members of the BAT group outside Malaysia. (Malaysia - ban on 14-stick cigarette packs delayed worry about increase in illicit cigarettes..

The machines are valued at between RM15mil and RM18mil.

“We do not sell to third parties because we do not know what they do with the machines,” said Toh.


REFERENCE: BAT sees challenging year by THOMAS HUONG Huong@thestar.com.my, THE STar , 4/20/2011>

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Malaysia - ban on 14-stick cigarette packs delayed worry about increase in illicit cigarettes..;
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Malaysia - smoking civil servants in Penang to receive free nicotine treatment..;
Malaysia - illicit cigarettes, BAT wants government to slow excise duty increases..;
Peninsular Malaysia - one of three cigarette packs is either contraband or fake..;
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Malaysia - PSD and Cuepacs are at odds over the no-smoking rule at government de­­partments and agencies..;
Malaysia: Are tobacco control measures working? - WHO thinks so...;
Malaysia - slowdown in cigarette consumption..;
Malaysia - January 1, 2009 pictorial cigarette warnings..;
Malaysia to hike cigarette prices..;
Malaysia - 25% of all cigarettes sales are illegal...Peninsular Malaysia - one of three cigarette packs is either contraband or fake..;
Komtar, Penang, Malaysia smoking ban strictly enforced..;
Malaysia student forced to smoke 40 cigarettes in two hours..
Malaysia - PSD and Cuepacs are at odds over the no-smoking rule at government de­­partments and agencies..;
Malaysia: Are tobacco control measures working? - WHO thinks so...;
Malaysia - slowdown in cigarette consumption..;
Malaysia - January 1, 2009 pictorial cigarette warnings..;
Malaysia to hike cigarette prices..;
Malaysia - 25% of all cigarettes sales are illegal...