BAT upbeat on local market
“I don’t think we’ll ever consider exiting from Malaysia, that’s very clear. We are here for a longer term,” managing director Erik Stoel said after the company’s annual general meeting yesterday.
He said with the assurance given by Second Finance Minister Johari Abdul Ghani recently that there will be no excise hike on tobacco went well with BAT’s future plans.
BAT will continue to invest in new products, and in research and development for a better growth for 2017.
On market share, Stoel said BAT’s market share in Malaysia fell to 57.1 per cent in the financial year ended December 31, 2016, from 60.9 per cent in 2015, dragged by excise increase in November 2015.
Stoel also said the current high level of illegal cigarette trade remains the main concern for the company, which is also the company’s main challenge in the short-, medium-term for legal tobacco industry.
He empahsised that the outlook of 2017 is highly dependent on the of the government’s initiatives to curb illegal trade.