BAT Malaysia To Continue Operations Despite Factory Closure

KUALA LUMPUR, April 25 (Bernama) -- British American Tobacco Malaysia Bhd (BAT Malaysia) will continue its presence and operations in Malaysia despite closing down its factory here, says Managing Director Stefano Clini. He said the company’s direction remained the same and it would continue to invest in the brand, people and talent while minimising cost. "Our priorities and game plan for this year will continue to focus on strengthening our portfolio and building a sustainable business model within a more demanding operating environment," Clini told a press conference here Monday. He said the company was neither relocating nor planning to have a new factory in Malaysia. Instead, it will leverage its resources from existing sourcing hubs within the BAT group such as in Indonesia, Singapore and South Korea. On April 18, BAT Malaysia announced that it was shutting down its only factory in Virginia Park, Selangor, in stages, and that the entire exercise will be completed in mid-2017. On the illicit cigarette trade in Malaysia, Clini said the government should consider a moratorium on cigarette excise for at least three years until the tobacco industry stabilised. He said a study carried out by Nielsen revealed that the illegal cigarette trade had reached a record high of 45.6 per cent, as of December 2015. In Malaysia, one out of two packs sold is contraband cigarette. -- BERNAMA