MALAYSIA
Despite the recent regional monetary crisis, Malaysia has shown good stability and strong
economic growth. In 1996, GDP per capita was stated at being US$4,495.1 Malaysia is a
confederation of 13 states spread across 330,000 square kilometers.2 Modern Malaysian
culture is a melting pot of the many nations that have dominated it. Indigenous Malays
constitute roughly 62 percent of the population, however, immigrants, especially Chinese
(who make up 30 percent of the population), have a tremendous presence in the country.
Indians constitute about 8 percent of the population. The rest are small numbers of Arabs,
Indonesians, Filipinos, and Pakistanis.
1.
Tobacco Use
1.1 Tobacco Related Morbidity and Mortality
Cigarette smoking accounts for a massive 25% of all deaths in Malaysia,3 with smokingrelated deaths comprising three out of five top killers in Malaysia.4 Cardio-vascular disease
(CVD) has been the number one killer in Malaysia since 1980.5 Hospital data from
Peninsula, Malaysia indicates that deaths from CVD increased from 15.6% in 1975 to
18.3% in 1991.6 Research by the Institute of Oncology, Radiotherapy and Nuclear
Medicine in Kuala Lumpur Hospital, has found that the incidence of lung cancer is
increasing rapidly at a rate of 17% per year.7
In addition to the human cost of tobacco consumption, according to State Youth Council
vice-president Tan Yok Cheng, smokers are one of the main causes of the nation's cash
outflow, spending about RM3 billion annually. Cheng was quoted as saying that the
amount was estimated to reach RM7 billion by the year 2020.8
1.2 General Prevalence
The most recent survey on smoking prevalence in Malaysia was conducted in 1996 by the
Ministry of Health. It surveyed 32,991 people over the age of 18 and found a total
smoking prevalence of 24.8%. Smoking rates amongst men were 49.2% compared to
women's 3.5%.9 This was higher than the previous national survey which found a total
smoking prevalence of 21.5%, with male smoking rates at 41% compared to women's 4%.
These surveys also illustrated some of the social indicators of smokers in Malaysia, finding
that ethnicity, region and occupation influenced smoking behaviour.
Malaysian smokers consume an average of 13.3 cigarettes per day, with over 60%
reporting to smoke over 10 cigarettes per day.10
1
Country Profiles on Tobacco or Health 2000, Malaysia, WHO, 2000
Malaysia Guide [web page](2000) http://msn.expedia.com/wg/Asia/Malaysia/P10442.asp
3 Press statement by the Minister of Health, the Hon Dato' Chua Jui Meng on tobacco control in Malaysia on 7 November
1996
4 The Sunday Star, July 18th, 1999, pg 11
5 Nain G. ‘Tobacco: National programmes in its consumption and control’, delivered at the Persidangan Kajian Semula
Rancangan Malaysia Ke-6 ke Arah Penyediaan Malaysia Ke-7, Epidemiology and Disease Control Unit, Health Services
Division, Ministry of Health Malaysia, 1993.
6 National Health and Morbidity Survey 1996, Institute of Public Health, Ministry of Health Malaysia, 1997.
7 Press statement by the Minister of Health, the Hon Dato' Chua Jui Meng on tobacco control in Malaysia on 7 November
1996
8 'Smoking and cash outflow in Malaysia', New Straits Times, December 28, 1998
9 National Health and Morbidity Survey 1996, Institute of Public Health, Ministry of Health Malaysia, 1997
10 Haniza Mohd Anuar and Suraya Abdullah, 'Smoking among adults in Malaysia', NHMS2 Conference, Vol. 15, p 118125, 1996.
2
Table 2 - National Health & Morbidity Survey - 1986 & 1996
National Health and Morbidity Survey
National Health and Morbidity Survey
1986
1996
Studied Population Over 15 yrs
Over 18 yrs
Sample Size
32,991
Coverage
Peninsula Malaysia
Malaysia
All Smokers
21.5%
24.8%
Male Smokers
41%
49.2%
Female Smokers
4%
3.5%
Source: National Health and Morbidity Survey 1986, 1996, Institute of Public Health, Ministry of Health
Malaysia, 1997
1.3 Prevalence by Gender
Approximately half of all men in Malaysia smoke, with indigenous Malay men most likely
to smoke.
Although the National Surveys show a reduction in female smoking rates from 4% in 1986
to 3.5% in 1996, World Tobacco Marketfile11 estimated that smoking by women had
climbed from 4% in 1985 to 5% in 1995. They also predicted that smoking amongst
Malaysian women would climb in the coming years.
1.4 Prevalence by Age
World Tobacco Marketfile12 describes teenage smoking in Malaysia as “an acute problem,”
stating that approximately 12% of boys and 2% of girls smoke, up from 10% of boys and
1% of girls in 1985. This is much lower however than other studies which have found
smoking rates amongst Malaysian youth ranging from 30% to 60% smoking prevalence.
The Ministry of Health estimates that the smoking rate amongst adolescent girls, aged 12
to 19, is 4.8% and is 30.7% amongst adolescent boys between the same ages.13
Experimentation rates are extremely high; a study by the Ministry of Youth and Sports,
conducted in 1994, showed that 71% of young people had experimented with cigarettes.14
Zulkifli et al suggest that prevalence studies may even underestimate the real prevalence,
as smoking is a disciplinary offence for school students. The highest smoking prevalence
was found amongst 'lepak' youth (young people who are unemployed and/or not in school.)
A Ministry of Culture, Youth and Sports survey on this group found a smoking prevalence
of 80%, which was much higher than in school students.15
Though Malaysia introduced a ban on smoking in schools in 1997 its enforcement is
uneven. There are reports that smoking in some schools is common and that no
disciplinary action is taken. In addition there are high smoking rates amongst teachers.
A small-scale survey, which showed a smoking prevalence of 40.5%16 amongst school
teachers, illustrates the difficulties faced in enforcing the ban and of getting teachers to
educate young people against smoking. Teachers who are themselves smokers may find it
11
"World Tobacco File"[web page](2000) http://www.marketfile.com
ibid.
13 Rosemawathi, Dr (2000), Pers Comm. [e-mail] Disease Control Division of the Ministry of Health & [web page](2000)
http://prn.usm.my/tobacco.html
14 The Star, January 4 1997
15 Zulkifli Ahmad, Rogayah Jaafar, Razlan Musa, 'Cigarette smoking among Malaysian youth: problems and prospects',
Proceedings of the Malaysian Society of Health 21st Scientific Symposium, Kuala Lumpur 6-7th December, 1997.
16 Naing NN, Zulkifli A, Wan Maizurin WY, Zani WM. Smoking and discipline problems among rural secondary school
students in Kelantan. Mal J Med Sc 1997;4(1):54-8.
12
2
difficult to enforce the smoking regulations and tend to view smoking by students as a
minor disciplinary offence.17
In addition, young people in Malaysia have been the target of massive promotional
campaigns by many of the TTC's working in the country. The campaigns, described in
section 3, are some of the world's most shocking examples of tobacco industry campaigns
targeting young people.
Table 2.1 - Summary of Surveys of Smoking Prevalence among Malaysian youth
Year
Author
Population
Sample Size
1967 Patrick E
University students
401
1984 Vimala T
Form 4
Males = 2099
Females = 2007
1987 Wong ML
Medical students
Males = 150
Females = 121
1996 Vijaya TV
Form 4
Prevalence of smoking
30.0%
Males = 17.3%
Females = 1.9%
Males = 17.3%
Females = 0.8%
Males = 25.1%
Females = 0.6%
1996 Second National Health 12 to 18 years
Males = 30.7
and Morbidity Survey
Females = 4.8%
1997 Naing NN
Form 4 male
224
Males = 4.2%
1997 Haris AM
Form 4 male
460
Males = 33.2%
Source: Zulkifli Ahmad, Rogayah Jaafar, Razlan Musa, 'Cigarette smoking among Malaysian youth:
problems and prospects', Proceedings of the Malaysian Society of Health 21st Scientific Symposium, Kuala
Lumpur 6-7th December, 1997.
1.5 Prevalence by Region
Smoking rates are highest in the state of Kelantan at 31.7%, which is Malaysia's primary
tobacco growing state. Penang Island, which is home to two of the major anti-smoking
groups in the country, had the country's lowest smoking prevalence of 20.7%.
Table 2.2 - Smoking Prevalence by Region (1996)
Region
Total (%)
Urban (%)
Rural (%)
Johor
23.4
22.1
25.1
Kedah
27.5
22.7
30.0
Kelantan
31.7
25.0
34.7
Melaka
24.2
23.4
24.8
N. Sembilan
24.6
20.6
28.7
Pahang
29.8
24.7
32.4
Perak
22.4
20.6
24.9
Perlis
28.3
23.0
30.1
P. Pinang
20.7
18.5
26.5
Sabah
29.3
24.0
31.8
Sarawak
22.3
16.5
26.4
Selangor
22.1
21.0
26.1
Terenggann
27.3
25.5
29.0
WPKL
24.6
24.6
Peninsula Malaysia
24.5
21.9
28.3
Malaysia
24.8
21.7
28.6
Source: National Health and Morbidity Survey 1996, Institute of Public Health, Ministry of Health Malaysia,
1997
17
Zulkifli Ahmad, Rogayah Jaafar, Razlan Musa, 'Cigarette smoking among Malaysian youth: problems and prospects',
Proceedings of the Malaysian Society of Health 21st Scientific Symposium, Kuala Lumpur 6-7th December, 1997.
3
Graph 2-Smoking Prevalence by Region (1996)
Rural
Urban
Total
K
Jo
ho
r
e
K dah
el
an
tan
M
N
e
. S lak
em a
bi
l
Pa an
ha
ng
Pe
ra
k
Pe
P. rli
Pi s
na
n
Sa g
Sa bah
ra
w
Se ak
la
Te ng
re or
ng
ga
W n
PK
L
40
35
30
25
20
15
10
5
0
Source: National Health and Morbidity Survey 1996, Institute of Public Health, Ministry of Health Malaysia,
1997
Smoking rates are higher amongst rural Malaysians than amongst urban Malaysians, with
nearly 7% more smokers in the countryside. This difference has increased since the 1986
survey. This pattern is similar throughout Southeast Asia and may be due to the higher
socio-economic levels of urban people as compared to rural people and the tendency for
public education campaigns to focus on urban areas.
Table 2.3 - Smoking Prevalence - Rural/Urban
National Health and Morbidity Survey 1986
National Health and Morbidity Survey 1996
Rural
23%
28.6%
Urban
19%
21.7%
Source: National Health and Morbidity Survey 1996, Institute of Public Health, Ministry of Health Malaysia,
1997
1.6 Smoking Prevalence by Ethnicity and Religion
Smoking is most prevalent amongst the Muslim Malay community and other indigenous
groups. Chinese and Indian communities have considerably lower smoking rates. This is
also illustrated when dividing smoking prevalence by religion, with Muslim Malaysians
smoking at a much higher rate than other religious groups. This is ironic considering that
smoking has been declared ‘haram’ since March 1995. Efforts to promote this ruling may
be successful in reducing smoking amongst Muslim Malaysians.
Table 2.4 - Smoking Prevalence by Ethnicity
Ethnicity
National Health and
National Health and
Morbidity Survey 1986
Morbidity Survey 1996
Malays
24%
27.9
Other indigenous groups
29.1
Chinese
18%
19.2
Indians
15%
16.2
Others
32.4
Source: Haniza Mohd Anuar, Suraya Abdullah, NHMS2 Conference, Vol. 15, p. 118-125 and National
Health and Morbidity Survey, Ministry of Health, 1986.
4
Table 2.5 - Smoking Prevalence by Religion, 1996
Religion
Ever Smoked
Muslim
35.0
Christian
29.6
Buddhist
23.4
Hindu
19.6
Source: Haniza Mohd Anuar, Suraya Abdullah, NHMS2 Conference, Vol. 15, p. 118-125.
1.7 Smoking Prevalence by Social Status
The 1996 National Health and Morbidity Survey showed that smoking prevalence was
highest amongst the least educated and lowest amongst the highest educated people in
Malaysia. Those receiving a primary school education or less had a smoking prevalence of
28% whilst those who had reached tertiary levels of education had a smoking rate of
17.2%.
Table 2.6 - Smoking Prevalence by Education Level, 1996
Education Level
Ever Smoked
Current Smokers
Nil
27.8%
21.7
Primary
35.1%
28.0
Secondary
30.5%
25.6
Tertiary
23.1%
17.2
Unclassified
23.2%
18.5
Source: National Health and Morbidity Survey 1996, Institute of Public Health, Ministry of Health Malaysia,
1997
In line with these findings, it was also shown that smoking rates were lowest amongst
white-collar workers and highest amongst the blue-collar occupations such as agriculture,
services and production. Tobacco advertising in Malaysia often uses images of wealth to
promote their products using what it calls ‘aspirational’ images. Thus, it is not surprising
to discover that despite the findings that smokers tend to be from lower socio-economic
groups, about 80 per cent of the cigarettes sold in Malaysia are in the premium category.18
Table 2.7 - Smoking Prevalence by Occupation, 1996
Occupational Groups
Ever Smoked
Current Smokers
Professional
25.5
19.4
Administration
41.2
32.8
Clerical
20.0
16.0
Sales
35.5
29.3
Services
44.4
37.0
Agriculture
56.4
46.4
Production
44.4
38.6
Others
43.4
35.7
Unclassified
33.8
25.3
Not applicable
12.9
9.1
Source: National Health and Morbidity Survey 1996, Institute of Public Health, Ministry of Health Malaysia,
1997
18
Wendy Lim, 'Deal set to give MTC a bigger mart share', Business Times, February 2, 1999
5
The National Health and Morbidity Survey 1996 found no significant difference in
smoking prevalence by personal income, except in the lowest income group. This group
earning less than RM400 had low smoking rates. However, when divided by household
income, it was found that those households with incomes of RM2000 (US$500) or less had
higher smoking rates than wealthier households.19
1.8 Cigarette Consumption
Annual adult per capita consumption of cigarettes in Malaysia rose steeply from the mid1960s to the mid-1980s but it has since declined. These figures do not, however, include
smuggled cigarettes and may therefore underestimate consumption.20
Table 2.8 - Cigarette Consumption 1981 - 1993
Year
Cigarette Sales (Billion cigarettes)
Per capita consumption (sticks)
1981
16.5
1,170
1989
18.2
1,047
1990
19.5
1,100
1991
18.8
1,037
1992
18.4
986
1993
17.6
920
Source: LTN referred to in Source: 'Statistics on Commodities', Ministry of Primary Industries Malaysia,
July 1995.
Table 2.9 - Consumption (Billions) 1996, 1997
1996
1997
Cigarette Consumption (Billions)
19.0
18.3
Source: Tobacco Reporter, September 1999, pg 28.
Table 2.10 - Changes in Annual Tobacco Consumption (1970-1984)
Year
Percentage increase
1970 - 1978
6.0%
1978 - 1982
3.5%
1982 - 1984
0.03%
Source: Chapman, S., and Wong, W., 'Tobacco Control in the Third World', International Organisation of
Consumers Union, 1990, pg 164.
2.
Tobacco Industry
2.1 Tobacco Growing
Malaysia is not a large tobacco leaf producer by world standards nor is tobacco production
a major contributor to the Malaysian economy, however, tobacco farmers are used
politically by the tobacco industry. The tobacco industry is constantly reminding
Malaysians of how much money they are inputting into Malaysian society.
19
National Health and Morbidity Survey 1996, Institute of Public Health, Ministry of Health Malaysia, 1997
Haniza Mohd Anuar and Suraya Abdullah, 'Smoking among adults in Malaysia', NHMS2 Conference, Vol. 15, p 118125, 1996.
20
6
Table 2.11 - Tobacco Growing in Malaysia 1961 - 1999
Element
Year
Area Harv (Ha)
Yield (Hg/Ha)
Production (Mt)
2,783
6,489
1,806
1961
3,192
7,024
2,242
1962
3,330
7,051
2,348
1963
3,753
6,579
2,469
1964
3,642
6,304
2,296
1965
3,237
6,509
2,107
1966
3,237
6,503
2,105
1967
2,428
7,677
1,864
1968
2,832
6,727
1,905
1969
3,237
8,109
2,625
1970
3,990
9,827
3,921
1971
8,041
8,950
7,197
1972
8,338
7,228
6,027
1973
9,870
7,720
7,620
1974
14,448
6,357
9,184
1975
8,249
5,660
4,669
1976
9,499
7,659
7,275
1977
12,372
7,840
9,700
1978
12,495
6,030
7,535
1979
13,243
7,155
9,475
1980
12,963
5,554
7,200
1981
12,744
6,764
8,620
1982
11,267
7,723
8,701
1983
10,568
6,772
7,157
1984
16,362
5,832
9,542
1985
16,344
8,712
14,239
1986
12,676
8,889
11,268
1987
9,621
7,735
7,442
1988
12,507
11,080
13,858
1989
10,168
9,986
10,154
1990
14,953
6,163
9,216
1991
11,905
9,446
11,245
1992
12,355
7,834
9,679
1993
10,219
5,957
6,087
1994
10,525
9,803
10,318
1995
10,982
10,675
11,723
1996
10,790
10,419
11,242
1997
14,200
7,865
11,169
1998
14,200
7,865
11,169
1999
Source:"Food and Agriculture Organisation of the United Nations"[web page](2000)
http://apps.fao.org/lim500/nph-wrap.pl?Production.Crops.Primary&Domain=SUA&servlet=1
7
Table 2.12 - Tobacco Production 1990 - 1999
Year
Production Quota (MT)
Actual Output (MT)
1990
9,717
10,517
Actual/Quota (Percent +/-)
+ 8.2
1991
10,473
9,849
- 6.0
1992
11,348
11,509
+ 1.4
1993
11,403
9,942
-12.8
1994
9,764
6,172
-36.8
1995
12,399
10,467
-15.6
1996
12,561
11,988
- 4.6
1997
13,300
11,444
-14.0
1998
14,160
11,361
-19.8
1999
14,400
7,817
-45.7
Source: FAS Attache Report 2000
Graph 2.1-Malaysia: Tobacco Growing Data
Area Harvested (Ha)
Yield (Hg/Ha)
18,000
Production (Mt)
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
97
95
93
91
89
87
85
83
81
79
77
99
19
19
19
19
19
19
19
19
19
19
19
19
75
19
73
19
71
19
69
19
67
19
65
19
63
19
19
61
0
Source:"Food and Agriculture Organisation of the United Nations"[web page](2000)
http://apps.fao.org/lim500/nph-wrap.pl?Production.Crops.Primary&Domain=SUA&servlet=1
Table 2.13 - Tobacco Growing in Malaysia
1990
1992
1997
1998
1999
Area used to grow 14,000 ha
11,905 ha
10,790 ha
14,200 ha
14,200 ha
tobacco
Production of dry 10.154 m kg 11.245m kg
11.241m kg
11.2m kg
14.5m kg
tobacco leaf
Production of
99,700
110,000
Green Tobacco
--------tonnes
tonnes
----Leaf
Revenue from
RM146m
RM150m
RM200m
tobacco
--------Source: 'RM200m in revenue from tobacco this year', The Star, Feb 4 th 1999; 'RM150m worth of tobacco
produced despite bad weather', Business Times (Malaysia), February 2 nd 1999, pg 2; Economic Report
1998/99, Ministry of Finance, pg 84.
8
Government support for tobacco production: The National Tobacco Board in the Ministry
of Primary Industries provides assistance to tobacco farmers and promotes domestic
growth. The Board promotes tobacco growing by giving subsidies to farmers, including
credit for fertilizers and pesticides to tobacco farmers. There have been some halfhearted
attempts to replace tobacco with other cash crops such as roselle and groundnuts but the
commercial gain is not as lucrative as tobacco and this has not proved successful.21 The
Malaysia Tobacco Board was established in 1973. Primary Industries Secretary General
Datuk Haron Siraj said that the Board was instrumental in developing the tobacco industry
in Malaysia.22
In 1998, the Primary Industries Ministry set up a steering committee to restructure the local
tobacco industry, making it more competitive. The move was made in light of tariff
reductions expected to come in as a result of the ASEAN Free Trade Area (AFTA).23
Whilst the tobacco industry is constantly reminding Malaysians of how many "families"24
work for the tobacco industry, restructuring in preparation for the AFTA tariff reduction
scheme will see thousands of curers, tobacco farmers and station workers out of work.25
Regional Differences in Tobacco Farming: Kelantan is the main tobacco growing state in
Malaysia with 18,126 registered tobacco farmers in 1994.26 Kelantan produced 9 million
kgs of tobacco in 1998.27 Terengganu is also a major tobacco farming state with 6487
registered tobacco farmers in 1994.28 It produced 3.2 million kgs of tobacco in 1998.29
Perlis and Kedah have seen an increase in the number of farmers through the 1980s and
1990s. In 1994, Perlis had 3,326 and Kedah had 3,211 registered tobacco farmers.30 In
1998 Kedah produced 1.1 million kgs of tobacco compared to Perlis's 1 million kgs.31
Table 2.14: Tobacco Production Quota by State (million kg)
State
1980
1991
1992
1993
1994
Total %
Total %
Total %
Total %
Total %
Kelantan
6.42
67.0
6.47
61.8
6.84
60.3
6.49
56.9
5.48
56.2
Terengganu
2.10
21.9
2.53
24.2
2.64
23.3
2.63
23.0
2.32
23.7
Perlis
0.36
3.7
0.46
4.4
0.70
6.2
0.89
7.8
0.73
7.5
Kedah
0.20
2.1
0.57
5.4
0.73
6.4
0.84
7.4
0.74
7.6
Source: 'Statistics on Commodities', Ministry of Primary Industries Malaysia, July 1995.
21
Zulkifli Ahmad, Rogayah Jaafar, Razlan Musa, 'Cigarette smoking among Malaysian youth: problems and prospects',
Proceedings of the Malaysian Society of Health 21st Scientific Symposium, Kuala Lumpur 6-7th December, 1997.
22 Leong, N., 'Panel to restructure local tobacco industry', The Star (Malaysia), November 4 th 1998, pg5.
23 'Tobacco sector to be revamped', Business Day (Malaysia), November 4 th 1998, pg 14.
24 'RM3.7m worth of fertilisers for flood-hit tobacco farmers', Business Times (Malaysia), April 3 rd 1999, pg 2.
25 Leong, N., '20,000 farmers to gain from delay in liberalising tobacco industry', The Star (Malaysia), August 19 th 1999,
pg 6.
26 'Statistics on Commodities', Ministry of Primary Industries, Malaysia, July 1995
27 'Rmzoom in revenue from tobacco this year', The Star (Malaysia), February, 4 th, 1999
28 'Statistics on Commodities', op. cit.
29 'Rmzoom in revenue from tobacco this year', op cit.
30 'Statistics on Commodities', op cit.
31 'Rmzoom in revenue from tobacco this year', op cit.
9
In 1990, 14,000 hectares were harvested for tobacco, down from 16,456 in 1985. In 1992,
10,550 tonnes of un-manufactured tobacco was produced (0.2% of the world total).32 In
1997, tobacco production reached 11,965 metric tonnes, down from 12,485 metric tonnes
the previous year due to adverse weather conditions. The production of raw tobacco
nevertheless remained significantly higher than in 1994 and 1995.
A rise in the demand for tobacco from cigarette manufacturers and the completion of a new
leaf processing plant run by Philip Morris boosted output levels. In 1997, Malaysia
produced 11.241 million kilograms of tobacco, giving a revenue of RM 146 million. In
1997, 95% of the tobacco grown in Malaysia was flue-cured. In 1999, 14.5 million kgs of
dry tobacco leaf was produced in Malaysia which was an increase from the year before
when farmers were only able to produce 11.3 million kg.33 1.3% of arable land is used for
growing tobacco.
Box 1: US Tobacco Trade with Malaysia
Despite facing weaker demand from the Malaysian cigarette manufacturers, tobacco was again
America's second largest agricultural export item to Malaysia in 1998, behind soybeans. The decline in
imports of flue-cured and burley tobacco was partly due to a drop in local cigarette demand and partly
due to a bigger carry-in stock level. The outlook for cigarette exports in 1999 is promising with the
relocation of British American Tobacco's Singapore manufacturing operations to Malaysia and Philip
Morris' commencement of cigarette manufacturing since the beginning of 1999. Anticipated shortfall in
local tobacco output and increase in demand from cigarette companies augur well for leaf imports.
Total imports (flue-cured and burley) from the U.S. are estimated to approach 10,840 tons - about half
of the Malaysian tobacco import market. However, domestic demand for cigarettes is expected to
remain weak in 1999. Malaysia's total flue-cured tobacco production dropped to 11,361 tons in 1998,
20 percent short of the set target. Adverse weather conditions affected yield per hectare but leaf quality
improved slightly. The total value of the 1998 crop was estimated at RM148 million. The domestic
target for 1999 has been set at 14,400 tons but with the recent abnormally heavy downpours, the
industry expects output to reach 10,000 tons. Domestic burley production dropped to 444 tons in 1998
due to prolonged dry weather conditions in the state of Sabah. For 1999, farmers are increasing area
devoted to burley cultivation and expect domestic burley output to increase to 540 MT. Since RJ
Reynold has been sold to the Japanese, Philip Morris is the only American tobacco company operating
in Malaysia. Domestic cigarette output dropped two percent to 26.2 billion sticks in 1998. The decrease
reflects a drop in domestic demand. The decline would have been steeper had it not been for the
increase in leaf usage for manufacturing cigarette for the export market. The 1999 outlook for cigarette
manufacturing is promising with the anticipation of a further increase in cigarette exports. However,
the industry expects a further 10 percent drop in domestic consumption in 1999. Effective September 7,
1998, local manufacturers increased the cigarette price by RM0.20 per packet of 20.”
Source: US Dept of Agriculture Foreign Agriculture Service
2.2 Tobacco Manufacturing
Malaysia is a major cigarette-manufacturing hub for multinational tobacco companies
working in the region. Recent changes have left the newly created British American
Tobacco (Malaysia) dominating 70% of the domestic cigarette market.
Production: Between 1990 and 1995 the market gained 11.7% in value terms despite a
7.9% contraction in sales. Cigarette production reached an all time high of 27.4 billion
sticks in 1997, an increase of 19.1% from 1996.
32
Country Profiles on Tobacco or Health 2000, Malaysia, World Health Organisation, 2000, pg 41
'RM200m in revenue from tobacco this year', The Star, Feb 4th 1999; 'RM150m worth of tobacco produced despite bad
weather', Business Times (Malaysia), February 2nd 1999, pg 2; Economic Report 1998/99, Ministry of Finance, pg 84.
33
10
Table 2.15 - Cigarette Production (million pieces)
1992
1993
1994
1995
1996
1997
Production
18,040
19,244
19,468
21,827
23,000
27,400
Source: USDA / World Tobacco file [web page](2000) http://www.marketfile.co.uk/Tobacco/htmlcigs/Asia
Table 2.16 - Cigarette Sales
Year
Current Value
% growth
Volume
% growth
(RM million)
year on year
(million pieces)
year on year
1990
1,317.8
-4.3
18,688
-1.4
1991
1,355.7
2.9
18,405
-1.5
1992
1,381.3
1.9
18,210
-1.1
1993
1,319.9
-4.4
16,792
-7.8
1994
1,426.0
8.0
17,284
2.9
1995
1,472.5
3.3
17,211
-0.4
1996
17,595
2.2
Source: Statistics on Commodities, Ministry of Primary Industries Malaysia, July 1995 / World Tobacco File
[web page](2000) http://www.marketfile.co
Table 2.17 - Production, Imports & Exports
Revised
Old
Market Year Begin
Filter Production
24090
1998
New
01/1998
24090
Preliminary
Old
28980
1999
New
01/1999
28110
Non-Filter Production
TOTAL Production
2100
26190
2100
26190
2520
31500
2457
30567
Imports
TOTAL SUPPLY
978
27168
978
27168
1000
32500
903
31470
Exports
Domestic Consumption
7868
19300
7868
19300
14000
18500
12467
19003
TOTAL DISTRIBUTION
Source: FAS Attache Report 2000
27168
27168
32500
31470
Table 2.18 - Production and Sale of Cigarettes
Year Production (billion sticks) Sales (Billion Sticks)
Sales Value Ex-factory (RM '000)
1970 9.22
8.99
248,894
1975 13.25
12.83
442,387
1980 16.52
15.95
578,021
1988 17.47
17.41
1,251,653
1989 18.06
18.22
1,315,574
1990 18.43
19.53
1,270,133
1991 18.16
18.84
1,310,831
1992 18.04
18.43
1,355,603
1993 17.34
17.58
1,396,307
1994 17.46
16.89
1,645,631
Source: 'Statistics on Commodities', Ministry of Primary Industries Malaysia, July 1995.
11
Table 2.19 - Annual Sale of Local and Imported Cigarettes (Billions Sticks)
Year
Cigarette Sales
Local
Imported
Total
1981
14.40
1.55
15.95
1989
17.84
0.39
18.23
1990
18.63
0.90
19.53
1991
17.98
0.86
18.84
1992
18.01
0.42
18.43
1993
17.17
0.41
17.58
1994
16.89
n/a
16.89
Source: 'Statistics on Commodities', Ministry of Primary Industries Malaysia, July 1995.
Production Facilities: Most manufacturing occurs in the poorer eastern coast of Peninsula
Malaysia. Rothmans has a production facility in Petaling Jaya (Selangor); the Malaysian
Tobacco Co has a cigarette factory in Kuala Lumpur; RJ Reynolds manufactures cigarettes
in Shah Alam (Selangor); Sampoera JI produces cigarettes in Petaling Jaya (Selangor); and
Tai Chong Tobacco Manufacturers and Co. has a cigarette plant in Chemor (Perak).
Companies: Up until 1999, the Malaysian Tobacco manufacturing industry was dominated
by the subsidiaries and affiliates of 3 tobacco multinationals: Rothmans International,
British American Tobacco (through the Malaysian Tobacco Company) and RJ Reynolds
International. However the global merger of BAT with Rothmans triggered a local merger
between MTC and Rothmans to form British American Tobacco (Malaysia), which now
controls 70% of the Malaysian market. In addition, Philip Morris has been gaining ground
with the growing popularity of Marlboro. Philip Morris controlled just over 10% of the
market in 1998. RJ Reynolds (Malaysia), which is now owned by Japan Tobacco
International, stated that Malaysia was one of JTI's most profitable markets in 1999. JTI
(Malaysia) posted an operating profit of MYR134 million, up from MYR101.6 million in
1998.34
Table 2.20 - Leading Companies' Percentage Market Share, by Company
Company / Year
1994
1995
1996
1997
1998
Rothmans*
51.0
48.7
48.5
56.0
56.9
RJ Reynolds
17.9
18.0
18.2
17.2
17.4
Malaysian Tobacco Company*
25.0
24.1
22.5
15.1
13.9
Philip Morris
10.5
10.4
Japan Tobacco
1.1
1.4
Others
6.1
9.2
10.8
0.1
Source: MarketFile and Tobacco Reporter, September 1999, pg 28.
* Rothmans of Pall Mall (Malaysia) Bhd and Malaysian Tobacco Company Bhd (a subsidiary of British
American Tobacco) merged in 1999 to form British American Tobacco (Malaysia)
BAT (Malaysia)
The global merger between British American Tobacco and Rothmans International in June
1999 created a global tobacco giant, which controls about 16% of the world cigarette
market. The merger immediately triggered discussion regarding a local merger between
the local subsidiaries of the parent companies.
34
Turner,C.,"Milk and honey - Following some tough years, the Malaysian tobacco industries prospects are looking up",
Tobacco Reporter, Bonus Issue, Summer 2000, pg 25
12
In November 1999, Rothmans of Pall Mall paid RM769.5 million for Malaysian Tobacco
Company Bhd (MTC)’s operating businesses, creating an enlarged company that was
renamed British American Tobacco (Malaysia), in December. BAT (Malaysia) controls
70% of the domestic Malaysian market with leading brand Dunhill accounting for 40% of
the market.35
BAT (Malaysia) made an after-tax profit of RM226.6 million in 1999 and earned RM689.2
million in the first quarter of 2000 ending March 31; Pre-tax profit grew 16% to
RM177.6million. 36
Box 2: Malaysian Tobacco Company Bhd (MTC)
British American Tobacco has been operating in Malaysia since the mid-1920s. The Malaysian
Tobacco Company Bhd (MTC) has been operating since 1956 but its origins date back to 1911. 37
Parent company BAT has a 54.70% interest in MTC via Chelwood Trading and Investment. It was
reported in 1998 that MTC exported about half of its production and was increasingly looking to export
more in the Asian region.38 In late 1994, MTC signed a three-year contract with the Kunming Tobacco
Company of China to manufacture and export cigarettes to China. Exports were around 100 to 120
million sticks per month. MTC also exported for Singaporean and Hong Kong companies. 39 MTC
focuses on brands Benson & Hedges and Kent and has paid less attention to its other brands John
Player Special, Lucky Strike, Kingsway, Gold Flake and Players Gold Leaf and 555. BAT was listed
first in a list of the top KLSE-listed companies in terms of net return on equity (%) for 1998 (M)
200.964.40 In 1998 MTC produced 2.8 billion sticks for the domestic market and 3 billion for the
export market, the relocation of BAT’s Hong Kong operations would see this export figure rise to 6
billion per year for export.41 In April 1998, BAT announced that it would relocate its Hong Kong
manufacturing facility to Malaysia. In 1999, British American Tobacco moved its Hong Kong
operations to Malaysia, with most of its production to fall to BAT’s Malaysian Tobacco Company.
Manufacturing for export already made up half of MTCs total volume and it was set to increase by
50%. The move was part of BAT’s plans to consolidate its manufacturing base in Malaysia. BAT is
the largest international tobacco company in Asia. 42 Two new high capacity pieces of machinery were
brought from Hong Kong to Malaysia and are situated in the MTC manufacturing plant in Sungai
Besi.43
Table 2.21 - Malaysian Tobacco Company Bhd Profits
1992
1993
1994
1995
1996
1997
Turnover
540.4
493.4
503.6
537.3
537.72 525.8
(RM million)
Pre-Tax
59.4
65.4
53.0
62.7
37.4
16.1
profit(RM
million)
Source: MTC aims to strengthen key brands’, Business Times (Malaysia), November 14th 1997, pg6.,
‘Malaysian Tobacco group pre-tax slips 56.9pc’, Business Times (Malaysia), February 25 th 1998, p5.,
‘MTC’s core brands do well’, Business Times (Malaysia), March 26 th 1998, pg6.
Eu Jin, Foo ‘British American Tobacco to focus on Dunhill brand’, Business Times (Malaysia), April 19 th 2000, pg6.
'BAT Malaysia first quarter Y2000 financial result', New Straits Times, April 21, 2000, pg 26.
37 *MTC was originally established in 1911 as Straits Tobacco Company, it then became known as Malayan Tobacco
Company Bhd which changed its name to the Malaysian Tobacco Company in March 1977.
38 Sidhu, B., ‘MTC aims to export more to Asia’, The Star, January 31st 1998.
39 ‘MTC aims to strengthen key brands’, Business Times (Malaysia), November 14 th 1997, pg6.
40 'Top 5 KLSE-listed companies in terms of net return on equity (%) for 1998', The Sun (SunBiz), February 14, 2000, p.2
41 Adnan H., ‘Decision to relocate BAT operations to Malaysia shows confidence in country: MTC’, The Star, April 28 th
1998.
42 ‘British American Tobacco to Relocate HK ops moves to M’sia’, The Sun (Malaysia), April 24 th 1998, pg5.
43 ‘MTC expects to increase after relocation’, New Straits Times, April 28th 1998.
35
36
13
Box 3: Rothmans of Pall Mall (M) BHD
Rothmans of Pall Mall began operations in 1962 in Singapore where it set up a pilot plant. For
background see ‘Operations began at pilot plant in 1962’, Business Times (Malaysia), 12 th June 1998.
From 1992 to 1997 Rothmans’ sales grew at an average rate of 2% per annum. In 1997 it used
approximately 70% local tobacco.44 In 1996 Rothmans was the market leader accounting for 48.5% of
sales. Dunhill, the country’s leading brand accounted for 35.8% of volume sales that year. Rothmans
of Pall Mall has embarked on an expansion programme which will increase its production capacity to
16 billion cigarettes per year from 12 billion cigarettes per year by investing RM34.5 million. 45
"In 1997, the company sold a total of 12 billion cigarettes. In terms of market size, it had dropped four
per cent to about 1.7 billion sticks per month. Rothmans continued to command the market with a 55
per cent share. The company's brandnames include Dunhill, Perilly's, Peter Stuyvesant and Rothmans
of Pall Mall. The company has spent RM34.5 million [USD1=RM3.8] during the last financial year on
the latest technology for its plant and equipment as well as state-of-the-art warehousing facility. Its
warehousing facility would be able to store between 15 billion and 16 billion sticks of cigarettes per
year compared to about 13 billion previously." 46
In 1997, Rothmans spent RM31 million on new technology to increase productivity of plant. 47
In 1998, Rothmans undertook a factory reconstruction programme at a cost of RM60 million to
increase the factory’s output to 1 billion cigarettes per month. 48
Table 2.22 - Rothmans of Pall Mall Annual Profits
1993
1994
1995
1996
1997
1998
Turnover
1,123.71
1,329.25 1,444.45
1,596.65 1,763.71 1,960
(RM million)
Pre-Tax
347.70
402.23
433.23
509.76
559.64
653.53
profit(RM
million)
Source: ‘Rothmans to reap benefits of modernisation measures’, Business Times (Malaysia), July 7 th 1997,
Pg6., Johari,S., ‘Rothmans ready to take on challenges’, Business Times (Malaysia), June 12 th 1998.
RJ Reynolds Bhd
March 9th 1999, Japan Tobacco International (JTI) entered into an agreement with RJR
Nabisco and RJ Reynolds Tobacco Co to acquire all the International tobacco business
belonging to the RJ Reynolds group of companies. This major sale by the RJR group
meant that it was withdrawing entirely from the International tobacco business.49
RJ Reynolds completed a RM150 million manufacturing expansion programme in 1998
which increased the production capacity of its factory in Shah Alam from 5 billion
cigarettes per year to 12 billion cigarettes. RJR plans to export approx 40% of production
to the regional market. The company began exporting in 1997 and has been designated the
Asia-Pacific sourcing centre, exporting to Thailand, Hong Kong and Japan.
The closure of the Hong Kong sourcing centre in late 1997 makes the Malaysian centre the
regional manufacturing hub for parent company RJ Reynolds Tobacco International
Holdings affiliates in the Asia-Pacific Region.50
‘Rothmans sales growth at 2pc’, Business Times (Malaysia), Jul9 1997, pg5.
Daud, D., ‘Rothmans to increase production’, The Star, July 8th 1998.
46 Kasmiah Mustapha, 'Rothmans revises growth projection downwards', New Straits Times, July 8, 1998
47 ‘Rothmans to reap benefits of modernisation measures’, Business Times (Malaysia), July 7 th 1997, pg6.
48 ‘Looking ahead: Rothmans installs state-of-the-art facilities in anticipation of a ‘better year’’, Corporate World,
February 1998, pg12
49 How, H,B.,"Japan Tobacco to pay US$162.8 mil for 60% stake in RJ Reynolds", The Star (Malaysia), May 13 th 1999,
pg1.
50 'RJ Reynolds to export 40pc of output to region', Business Times (Malaysia), May 23 rd 1998, pg5, and Menon, N.,
‘RJR to push exports, increase local market share’, The Sun, May 23 rd 1998, pg18.
44
45
14
It will be supplying cigarettes to countries throughout this region. Cigarettes produced for
the local market contain 70% local tobacco leaf51 RJ Reynolds’ company chairman Datuk
Mohamad Nadzmi Mohamad Salleh said that, “… the new plant will provide RJR with
longterm capability to develop its export business, especially when the South-East Asian
economies recover.”52
Table 2.23 - RJ Reynolds Bhd
1993
1994
1995
1996
1997
1998
Turnover
406.5
494.9
569.9
604.2
649.2
641.5
(RM million)
Pre-Tax Profit
76.3
90.3
133.7
141.8
133.9
101.6
(RM million)
Source: Foo Eu Jin, ‘RJR expects 1998 to be satisfactory year’, Business Times, June 26 th 1998, pg 6., ‘RJR
chairman: Sales to depend on recovery’, The Star (Malaysia), May 22 nd 1999, pg9.
Philip Morris
In November 1998, Philip Morris signed a six-year contract with Malaysian Westport
Distripark to provide 170,000sq ft of storage space in Malaysia’s free commercial zone.
The new facility will be used to distribute tobacco products in the region.53
Philip Morris representative, Ricardo Cergneux states “We have decided to establish our
South-East Asian operations in Malaysia…”54
2.3 Imports and Exports
Imports: Import costs of tobacco and cigarettes in 1990 amounted to US$47.2 million
(0.1% of all import costs). The United States is the main source of tobacco and cigarettes
imported into Malaysia, accounting for 73% of raw tobacco imports and 40% of cigarette
imports in 1994. The number of cigarettes imported from the US has declined during the
1990s as compared to the 1980s however the import of raw tobacco has remained
consistent at approximately 3 million kgs.
Imports of cigarettes from Hong Kong and Singapore had been strong but saw sudden
drops in 1994, a consequence of industry restructuring which saw closures of plants in
those countries. Imports of cigarettes from Japan have been steadily growing. In 1997,
according to the United States Department of Agriculture (USDA), cigarette imports
amounted to RM97.5million, a 113% increase from 1996. Imports almost doubled during
1997, with around 1,252 million pieces, compared with just 640 million pieces in 1996.
The US, Hong Kong, the UK, the Philippines and Indonesia remain the five largest
suppliers to Malaysia. In general, high tarifs tend to restrict the quantity of cigarettes
imported. Imports from the US and UK are usually destined for sale in duty-free shops.
In 1997, 20,475 tonnes of raw tobacco was imported into Malaysia, most came from the
US but tobacco was also imported from China, Brazil, Turkey and Argentina. Imports of
raw tobacco from Thailand have increased significantly during the 1990s from zero in 1988
RJ Reynolds to export 40pc of output to region’, Business Times (Malaysia), May 23 rd 1998, pg5, and Menon, N., ‘RJR
to push exports, increase local market share’, The Sun May 23 rd 1998, pg18.
52 ‘RJR developing export business in big way’, The Star, May 23 rd 1998.
53 ‘KPB unit and Philip Morris sign warehousing pact’, The Star (Malaysia), November 27 th 1998
54 ibid.
51
15
to 4.6 million kg in 1994. It is becoming a major supplier of tobacco to Malaysia. In 1994,
over 4% of raw tobacco imported into Malaysia came from Thailand.55
In June 1998, it was reported that tobacco companies could only import a maximum of
30% of their required raw tobacco leaves.56
Table 2.24 - Imports of Cigarettes (Volume in Kg/Value in RM CIF)
Year
Import of Cigarettes
Volume
Value
1980
2,890,942
46,909,309
1989
904,382
46,486494
1990
990,323
48,586,553
1991
2,215,301
93,654,517
1992
2,867,311
104,547,001
1993
1,962,617
81,019,637
1994
1,095,350
51,480,487
Source:"Statistics on Commodities", Ministry of Primary Industries, Malaysia. July 1995, p 139
Exports: Malaysia earned about US$651,000 in 1990, from cigarette and tobacco exports.
In 1998, MTC exported 40% of its total production of some 5 billion sticks, mostly to
Asian countries. A large part of MTC’s export business is represented by contract
manufacturing for British American Tobacco which has a 54.7% stake in MTC.57
Cigarette exports surged from 3,707 in 1996 to 7,731 million pieces in 1997, with many of
the exports going to Thailand, Hong Kong, and Singapore. Malaysia has also been
targeting the Chinese, Korean and Vietnamese markets. In 1995, MTC signed an
agreement with the Kunming Tobacco Company to supply between 100 million and 200
million sticks a month to the Chinese company.58
Export of tobacco products increased by 70% to RM379 million during the first seven
months of 1998 (January to July 1997: 17.9%) due to increased demand for tobacco
products from East Asia, particularly Hong Kong and Singapore.59
The manufacturers are allowed to import duty free tobacco for manufacturing cigarettes
meant for export. This is aimed to boost manufacturing of finished product. In 1998, 8
billion sticks of cigarettes were exported. The volume might inflate in the near future as
manufacturers are keen to make Malaysia a hub of cigarette manufacturing for export to
ASEAN countries and Asia.60
Table 2.25 - Malaysia: Imports/Exports of Cigarettes (million sticks)
1992
1993
1994
1995
Imports
2,867
1,962
1095
2033
Imports as a % of
16.0%
10.2%
5.9%
9.9%
consumption
Exports
2,965
1,904
2008
3297
Exports as a % of
16.4%
9.9%
10.3%
15.1%
1996
640
3.2%
1997
700
6.0%
1998
n/a
___
3707
16.1%
5915
28.2%
6035
___
55
'Statistics on Commodities', Ministry of Primary Industries Malaysia, July 1995.
‘Rothmans ready to take on challenges’, Business Times (Malaysia), June 12th 1998
57 Parameswaran, P. ‘MTC: Cigarette sales still robust’, Business Times (Malaysia), March 27 th 1998, p6.
58 'MTC aims to strengthen key brands', Business Times (Malaysia), Friday, 14 November, 1997, pg 6.
59 Economic Report 1998/99, Ministry of Finance, pg 84
60 Ministry of Primary Industries Malaysia [web page](2000) http://www.kpu.gov.my/english/icis/tobaco/tcigar.htm
56
16
production
Source: USDA / World Tobacco, Tobacco Journal International and Confederation of Malaysian Tobacco
Manufacturers
2.4 Smuggling
Tobacco smuggling is estimated to cost US$200 million in tax losses each year. It is
estimated to account for 10% to 18% of the total domestic market, mainly involving kretek
cigarettes from Indonesia which sell at half the price of ‘white’ cigarettes.61
Tobacco Market File reported that, “In 1993, illegal sales of kreteks accounted for 17% of
the tobacco market volume” and that, “In 1994 the level of smuggling declined slightly,
although it rose to an estimated 18% in 1995”. 62 Many of these smuggled cigarettes are
‘kretek’ or ‘clove’ cigarettes coming from Indonesia.
Rothmans Chairman Tan Sri Abu Talib Othman said that smuggled cigarettes accounted
for 15 to 20% of the market. He also disclosed that ‘kretek’ or clove cigarettes were the
main cigarettes smuggled into Malaysia.63
In an interview in August 1999, MTC’s Managing Director Russell Cameron was quoted
as saying, “In excess of 20% of all products smoked in Malaysia are duty not paid –
smuggling – largely ‘kretek’ (clove cigaretes from Indonesia).” He went on to say that the
Malaysian government lost around RM800 million to RM1.2billion in tax revenue each
year, due to smuggling.64
3.
Marketing strategies
“We spend a lot of money in advertising”
- Nigel Buck, Managing Director of Rothmans (1998)65
Spending on tobacco advertising in Malaysia is extremely high. In 1997, the tobacco
industry spent US$89 million (over RM400 million) on advertising in Malaysia alone.66
Rothmans is the largest spender; it is estimated that Rothmans spent RM127 million on
advertising in Malaysia alone, in 1996.67 Malaysian Tobacco Companies are number one
advertisers on electronic media and are the largest advertising and sponsorship spenders
occupying about 25% of total advertising expenditure for 1995.68 Financial analysts say
that advertising remains a major cost component for tobacco companies in Malaysia.
Professor Dzul at Poisons Centre Malaysia, estimates that 43% of the revenue of television
stations comes from tobacco advertising.
Table 2.26 - Top Advertisers in Malaysia (US$ thousands)
1991
1992
61
"World Tobacco File"[web page](2000) http://www.marketfile.com
ibid.
63 ‘Rothmans plans to achieve 5pc sales growth’, Business Times (Malaysia), July 8 th 1998, pg66.
64 ‘Rothmans, MTC to grow merged business’, The Star, August 10 th 1999.
65 ‘Looking ahead: Rothmans installs state-of-the-art facilities in anticipation of a ‘better year’’, Corporate World,
February 1998, pg12
66 Assunta, M., 'Malaysia" A case Study in Brand Stretching', Global Aggression: The Case for World Standards and
Bold US action Challenging Philip Morris and RJR Reynolds, INFACT 1998 Peoples Annual Report.
67 Govind S., ‘Where there’s smoke…’, Corporate World, February 1998, p9.
68 Tobacco Companies' Ads to Remain, Business Times, Aug 27, 1996.
62
17
Rothmans Int
23,368
31,003
BAT Industries
13,440
12,975
RJR Nabisco
9,891
9,172
Source: Asia-Pacific Tobacco Control News, Bulletin No 18, March 1995
MTC Chairman Datuk Mohd Ghaus Badioze Zaman said that the company had installed
1000 merchandising units for Benson and Hedges in 1997.69
MTC spent RM9million on advertising between July 1997 and June 1998, said MTC's
Consumer and Regulatory Affairs Director, Sharifah Rozita Sulaiman.
The advertising budget of cigarette importers and distributors amounted to RM53.4 million
while rival RJ Reynold spent RM14.5 million between July 1997 and June 1998.70
Mary Assunta, Consumer Association of Penang, believes that Malaysia is the testing
ground for new advertising strategies for cigarettes. Tobacco industries contend that they
need to advertise to stay competitive.
Table 2.27 - Top Marketers in Selected Countries
Country
Company
Rank*
Ad Spending **
Hong Kong
Indonesia
Malaysia
Malaysia
Malaysia
Pakistan
Philippines
Philip Morris
9
$12.9 Million
Philip Morris
10
$6.3 Million
Rothmans
1
$36.2 Million
BAT
2
$19.7 Million
RJR
4
$9.5 Million
BAT
2
$1.6 Million
Fortune Tobacco
8
$17.9 Million
(RJR Licensee)
Bulgaria
Philip Morris
3
$1.2 Million
Bulgaria
Rothmans
5
$1 Million
Bulgaria
BAT
7
$941,000
Czech Republic
Philip Morris
9
$3.3 Million
Romania
Philip Morris
4
$2.1 Million
Romania
RJR
9
$1.2 Million
Slovak Republic
Philip Morris
3
$1.8 Million
Mexico
Cigarrera La Moderna
8
$29.9 Million
(BAT Subsidary
Bahrain
Philip Morris
4
$310,000
Kuwait
Philip Morris
1
$4 Million
Kuwait
Rothmans
6
$1.2 Million
Lebanon
BAT
3
$4.5 Million
Lebanon
Philip Morris
10
$2.3 Million
Oman
Philip Morris
6
$513,000
Qatar
Philip Morris
3
$417,000
Saudi Arabia
Philip Morris
3
$3.5 Million
UAE
Philip Morris
4
$1.7 Million
** Spending amounts are for Asian, European and Latin American countries are from 1996, and for Middle
Eastern Countries, from 1995.
*Companies are ranked by advertising expenditure in each country
Sources: Advertising Age; 10 November, 1997 and 11 November, 1996.
69
70
‘MTC’s core brands do well’, Business Times (Malaysia), March 26th 1998, pg6.
Lim, W., 'Deal set to give MTC a bigger mart share', Business Times, February 2, 1999
18
3.1 Electronic Media
In 1996, the Ministry of Information announced that the government-owned Radio
Television Malaysia (RTM) earned RM150.7 million (US$33 million) from tobacco
advertisements, amounting to 43% of the total revenue collected from advertisements.71
Mary Assunta, stated that tobacco companies sponsor movies on television as well as live
telecasts of sporting competitions, music shows and other broadcasts.
3.2 Newspapers and Magazines
A survey of tobacco advertising in Malaysian daily newspapers found that Benson and
Hedges was the most commonly advertised brand, followed by Peter Stuyvesant and
Salem. Advertisements appeared in the English language press more often than the Malay
language press.72
3.3 Brand Stretching
Malaysia banned direct tobacco advertising in 1993 with the promulgation of the 'Control
of Tobacco Products Regulations'. The regulations prohibit direct advertising of tobacco
products in the local media, however it does not prohibit tobacco companies from using
cigarette brand names to advertise other products and services. This gaping loophole has
made Malaysia's advertising ban completely ineffective.
Tobacco companies have set up many 100% owned subsidiaries that use the same brand
names and images as the cigarettes they produce. Examples of these types of ventures
include the Benson and Hedges Bistro, Salem Holidays, Salem Power Station music stores,
Salem Attitude clothing, Winfield Casuals clothing, Camel Adventure Gear, Rothman's
International Executive Travel.
The tobacco companies' profits from these subsidiaries are negligible but the companies
spend millions promoting them.
This type of advertising is called 'brand-stretching' and the tobacco industry insists that it is
legitimate. They refer to it as 'trademark diversification advertising'. In 1992, RJ Reynolds
was exposed for advertising a non-existent travel business called 'Salem High Country'.
The 'travel business' was advertised on television daily but did not in fact exist at all.73
3.4 Other promotional tactics
Music and Movies: Despite numerous statements from the tobacco industry claiming that
they do not target young people, campaigns in Malaysia are highly youth-focused. RJ
Reynold's 'Salem' brand is promoted by sponsoring live pop concerts under the banner
'Salem Cool Planet' with international artists such as Alanis Morissette, Hootie and the
Blowfish and Paula Abdul, as well as Chinese entertainers like Daniel Chan and Fay
Wong. They also sponsor televised music concerts, sponsor a music show on television
called 'Cool Planet Chart', run end-of-year disco parties and run the 'Salem Power Station'
71
George, J., Conference Report for the 'Malaysian Conference on Tobacco-Related Issues' 1996, p.12.
United for Tobacco Free Malaysia [web page](2000) http://prn.usm.my/tobacco/adfebruary.html
73 Assunta, M., 'Malaysia" A case Study in Brand Stretching', Global Aggression: The Case for World Standards and
Bold US action Challenging Philip Morris and RJR Reynolds, INFACT 1998 Peoples Annual Report.
72
19
music store. For New Year 2000, RJR held the 'Salem Cool Millenium Party'. RJR also
runs various contests for free tickets to concerts that they are not involved in, and give out
free movie tickets under the 'Salem Cool Planet' banner.74
Sport: In 1996, Peter Stuyvescent Travel was the official sponsor of the Olympic Games in
Atlanta. Tobacco companies sponsor many sporting events in Malaysia including soccer,
Formula One Racing and golf. Soccer in Malaysia is dominated by Rothmans’ Dunhill
brand, which is used to sponsor games and telecasts, including a live telecast of the World
Cup in 1998 and telecasts of English League soccer matches. Rothmans also sponsors the
Malaysian Professional Football League. Philip Morris has a long history of sponsoring
motor racing in Malaysia. Malaysia's King, Prime Minister and Deputy Prime Minister,
have all endorsed Marlboro's sponsorship of motor racing in the country. The sponsorship
includes hosting racing events, telecasting races, and sponsoring the Marlboro Total
Malaysian Club Prix. When the Formula One came to Malaysia, the Prime Minister of the
country waved the flag to start the event.75
In the year 2000, BAT spent RM3.14 million (US$825,500) sponsoring the Benson &
Hedges Malaysian Open, which was telecast live and via delayed telecasts throughout the
four-day event. The Malaysian Open, which is co-sanctioned by the Asian PGA and
European Tours, was also beamed live across Asia via cable TV. British American
Tobacco (BAT) marketing director, Datuk Phan Boon Siong said, "The Benson & Hedges
Malaysian Open will be put on the world stage via our live broadcasts."76
Public Relations and Corporate Philanthropy: The tobacco industry also spends money
trying to "patch-up" their reputation, small donations are advertised extensively in the
media. A recent example in Malaysia was Rothmans' provision of one-year scholarships to
5 children of Rothmans employees. This small donation gained considerable attention
despite the fact that the students would be subsequently bonded for between two and three
years with the company.77
In Malaysia, the industry is particularly interested in keeping tobacco farmers on side. In
1998, Rothmans, RJ Reynolds and the National Tobacco Board donated six water pumps to
tobacco farmers at Kampung Gaung in Hulu Terengganu.78 They have also provided
assistance to farmers during droughts. These small donations are carefully selected and
widely publicised.
The Tobacco Industry (particularly Philip Morris) has been involved in trying to run socalled 'anti-smoking' campaigns for young people. The Ministries of Education in
Thailand (See Thailand:Box 4) and in Malaysia have both been approached by the tobacco
industry to jointly run anti-smoking programmes. In Malaysia, the campaign was called
'Right Decisions Right Now' and it was run in around 1,500 secondary schools in May and
August of 1997. These types of programmes claim to 'empower' young people to make
their own decisions, but they omit comprehensive health information with which to make
an informed decision.
74
ibid
Assunta, M., 'Malaysia" A case Study in Brand Stretching', Global Aggression: The Case for World Standards and
Bold US action Challenging Philip Morris and RJR Reynolds, INFACT 1998 Peoples Annual Report.
76 'Golf: Live coverage for Malaysian Open', New Straits Times, Feb. 3, 2000
77 'Local students get Rothmans scholarships totaling RM30,000', New Straits Times, Saturday, November 14, 1998
78 Azura Abas, 'Mardi making efforts to increase tobacco output', March 23, 1998
75
20
The tobacco industry in many countries such as Malaysia, routinely issue press releases
restating how much money they have 'earned' for the country, how many people work in
the industry and how much the industry pays the government in taxes. Malaysian business
papers as well as standard papers regularly report the information from these press releases.
4. Tobacco Control Policies
Malaysia enacted the 'Control of Tobacco Products' Regulations in 1993, under the Food
Act of 1983. The regulations were officially implemented on 15th May 1994. Although
they have been amended a number of times, these regulations remain the primary
legislative mechanism used to control tobacco in Malaysia.
Moreover, industry interference has meant that only the least effective tobacco control
measures are in place in Malaysia. In 1997, MTC Chairman Datuk Mohamad Ghaus
Badioze Zaman said, “as a member of the Confederation of Malaysian Tobacco
Manufacturers, the company saw a need to explore opportunities to work with the
authorities to ensure balance in designing new regulations that govern the industry and its
ability to maintain smokers’ rights.”79
Smokefree Settings: Regulation 10 of the 'Control of Tobacco Products' Regulations
prohibits smoking in amusement centers or theatres when such places are open to the
public, as well as in hospitals, clinics, public lifts and public vehicles. The regulation also
made mandatory the provision that at least 50% of seating in air-conditioned restaurants
must be smokefree.
In October 1996, the Cabinet endorsed the extension of this regulation to include banks and
financial institutions; sporting complexes, including stadiums; shopping complexes, airconditioned shops, including restaurants or any eating places; government offices;
transport terminals for bus, taxi, ferry and train; schools, including kindergartens, nurseries,
institutions of higher learning (excluding hostels and open spaces); petrol stations; public
halls while in use by the public; airports excluding some designated areas); and service
counters of Tenaga Nasional Berhad, Telekom and Pos Malaysia. There are now 18 public
places where smoking is banned or controlled.
Malaysian Airlines banned smoking on all flights except those going to and coming from
Japan, in January 1996 and in 2000 banned all flights.
Advertising: The ‘Control of Tobacco Product Regulation’ Act was passed in May 1994.
The main provision of the act was the prohibition of all direct cigarette advertising, but
indirect advertising using brand names was still permitted.80 This means that cigarette
brand names and logos can be used for the promotion of non-cigarette items. The Minister
for Information has argued that this type of advertising does not contravene the law.
Subsequently, indirect advertising became extremely widespread in Malaysia.
‘MTC aims to strengthen key brands’, Business Times (Malaysia), November 14th 1997, pg6.
Roemer R. Legislative action to combat the a World Tobacco Epidemic 2nd edn Geneva: World Health Organisation,
1993.
79
80
21
Since 1996, the government has been looking into widening the ban however the
government was attempting to do this through discussions with the Confederation of
Tobacco Manufacturers. World Tobacco Marketfile stated, “The Malaysian Government is
unlikely to extend the country’s ban to include indirect advertising due to economic
considerations”. 81
Malaysia's incomplete advertising ban illustrates the need for a comprehensive ban on
advertising, if it is to be effective at all. Business analysts believe that the short-term
monetary importance of the Tobacco Industry's sponsorship of major sporting events in
Malaysia, make it unlikely that a comprehensive advertising ban will be brought about in
the near future.82
Warnings: Cigarette packs bear a single fixed health warning on the side of the pack which
reads 'Warning by the Government of Malaysia: Smoking is dangerous to your health'. 83
The warnings must be printed in capital letters, be at least 3mm in height and appear in the
same colour and background as the packet. Cigarette packs must also have tar and nicotine
levels printed on the pack. The Malaysian health warning is extremely small and does not
reduce the ‘attractiveness’ of the pack.
Harm reduction: Malaysia has controls on the tar and nicotine content of cigarettes sold in
Malaysia, which must be less than 20mgs of tar and 1.5mgs of nicotine.
Youth Access: The buying and selling of cigarettes to persons under 18 years of age is
prohibited and cigarette vending machines are banned. However, studies have shown that
the ban is not an effective mechanism for reducing youth access to cigarettes. A study in
Kota Bharu, in the Malaysian state of Kelantan, found that 97.4% of youth attempts to
purchase cigarettes, were successful.84
Taxation
In June 1998, it was reported that the import duty on tobacco leaves was RM50 per kg.
Sales tax on cigarettes in 1998 was quoted at being 15%.85
In 1992, the taxation on cigarettes was increased by 100% and import and excise duty was
doubled in 1993 to US$11.44 per kg.86 In 1998 the import duties on cigarettes, cheroots,
cigars and cigarillos was increased to RM180 per kg, from RM162 per kg for cigarettes
and RM138 for cheroots, cigars and cigarillos. The excise duty on cigarettes was
simultaneously increased from RM28.6 per kg to RM40 per kg.87
81
"World Tobacco File"[web page](2000) http://www.marketfile.com
Govind S., ‘Where there’s smoke…’, Corporate World, February 1998, p9.
83 Zulkifli Ahmad, Rogayah Jaafar, Razlan Musa, 'Smoking among Secondary Students in Kelantan', Proceedings of the
Kelantan Health Conference, 1998.
84 Zulkifli A, Rogayah J. 'Cigarette sales to minors in Kelantan'. Med J Mal 1998;53(2):1-3.
85 ‘Rothmans ready to take on challenges’, Business Times (Malaysia), June 12th 1998
86 Tobacco Marketfile [web page](2000) http://www.co.uk/Tobacco/htmlcigs/Asia%2…/malaoe.htm & Zulkifli Ahmad,
Rogayah Jaafar, Razlan Musa, "Smoking among Secondary Students in Kelantan", Proceedings of the Kelantan Health
Conference, 1998.
87 Rosemawathi, Dr, (2000) Pers Comm. Disease Control Division of the Ministry of Health & [web
page](2000)http://prn.usm.my/tobacco.html
82
22
Cigarette prices were increased by RM0.20 per pack in August 1997. Prior to this change,
cigarette prices had last been increased in May 1995 by RM0.10 per pack. The average
price of a pack of cigarettes ranges from RM2.40 to RM4.00. On October 30th 2000,
cigarette prices were raised by 30 sen partially due to a recent sales tax increase of 67%.
Cigarette companies pay 25% tax currently.88
Table 2.28 - Rate of Duty on Tobacco and Tobacco Products 1996
Import
Export
Raw Tobacco; tobacco refuse. Tobacco not stemmed/stripped
Flue cured, kg
5% and RM50 Nil
Other, kg
5% and RM50 Nil
Raw tobacco; tobacco refuse. Tobacco partly or wholly stemmed/stripped
Flue cured, kg
5% and RM50 Nil
Other, kg
5% and RM50 Nil
Tobacco refuse
5% and RM50 Nil
Cigars, cheroots, cigarillos and cigarettes containing tobacco
Cigars, cheroots, cigarillos, kg
RM138
Nil
Bidis, kg
5% and
Nil
RM19.50
Other
RM162
Nil
Cigars, cheroots, cigarillos and cigarettes containing tobacco substitutes
Cigars, cheroots, cigarillos, kg
RM138
Nil
Cigarettes, kg
RM162
Nil
Other manufactured tobacco and manufactured tobacco substitutes
Homogenised, reconstructed tobacco, tobacco extracts and essences
Smoking tobacco packed for retail sale, airtight
5% and RM60 Nil
container, kg
Smoking tobacco packed for retail sale, other, kg
5% and RM60 Nil
Snuff, kg
5% and RM60 Nil
Source: National Tobacco Board, Malaysia, 1996
Sales Tax
Nil
Nil
Nil
Nil
Nil
15%
15%
15%
10%
10%
10%
10%
10%
Effectiveness of Tax: Taxes on cigarettes have been one of the more effective measures to
control tobacco use. According to a statement by the Malaysian Tobacco Company Bhd
(MTC), the Malaysian cigarette market declined by 7.4% for the first six months in 1999,
following price increases in the last quarter of 1998.89 A similar story was found after the
tax was increased by 100% in 1993, when the value of the market contracted by 4.4% and
even sharper falls were felt in volume sales.90
In 1998 a Rothmans executive was quoted as saying, “Any increase in the cost for
consumers will make it more difficult for them to buy cigarettes.”91
88
Raj,Adelaine Paul. "BAT expects initial drop in cigarette demand" Business Times, Malaysia, November 28,2000,
pg.13.
89 'Malaysia cigarette market down ', The New Straits Times Aug. 3, 1999, p.20
90 "World Tobacco File"[web page](2000) http://www.marketfile.com
91 ‘Looking ahead: Rothmans installs state-of-the-art facilities in anticipation of a ‘better year’’, Corporate World,
February 1998, pg12
23
Government Revenue from Tobacco: The Malaysian Government earns a large amount of
money from Malaysia’s involvement with the tobacco industry. World Tobacco
Marketfile states that the Malaysian government collects in excess of RM810 million from
import and excise duties, corporate sales tax and surtax from cigarette manufacturers
annually. The Ministry of Health estimates that the government received approximately
RM1.28 billion in taxes from tobacco in 1997.
Table 2.29 - Revenue from Tobacco the Industry (RM Million)
1981 1990 1991 1992 1993 1994
Import Duties (Tobacco, Cheroots and Cigarettes) 238.6 213.6 206.9 235.9 181.3 211.7
Excise Duties (Local cigarettes)
67.0
158.6 221.7 257.2 464.1 455.2
Total
305.6 372.2 428.6 493.1 645.4 666.9
Source: MTC, RJR, Rothmans, LTN referred to in 'Statistics on Commodities', Ministry of Primary Industries
Malaysia, July 1995.
Islam: As done previously in many Muslim countries throughout the world, Malaysia
National Fatwa Committee for Islamic Affairs ruled that smoking was 'Haram' (strictly
forbidden) on March 23 1995,92 . The Fatwa had not, however, been given strong attention
in the past, and Mary Assunta of the Consumers Association of Penang said that the Fatwa
has been “unofficially set aside”.93 Activists in Malaysia are now seeking to re-invigorate
the Fatwa and garner support from Imams in the country.
Box 4: Why has smoking been declared Haram?
There are many reasons why smoking was judged to be 'Haram'; amongst them that smoking harms
your body. Islam prohibits any action that causes harm to oneself or to other people. Allah said, "Do
not cast yourselves, with your own hands, into destruction." Islam requires its adherents to control
their desires.
Smoking also harms your mind and weakens your will power (Allah wants the believer to be strong
and capable of controlling the reigns of his desires)
... it Harms The Environment (Regarding passive smoking, "Anyone who believes in Allah and the
Last Day should not hurt his neighbor")
... it is wasteful ("A smoker wastes his wealth on that which harms and has no benefit; he will be asked
about his wealth and how he spent it, as has been cited in the hadith earlier. His wealth belongs to
Allah, so how would he dare to waste it in disobedience to Him?")
Source: Assanta, M, CAP, (2000) Pers Comm.
Summary of Action and Events
Year
Event
1971
Prevalence study on public health doctors
1972
Prevalence study on medical students.
1972
Formation of Joint Committee of MOH and MMA on Smoking and Health - Action on
Smoking or Health Committee (ASH).
1972
Sheikh Abdullah Pay Revision Report abolished free cigarettes to military personnel on
operations.
1973
Smoking banned in cinemas (Banning of Smoking Rules 1972)
1975
MOH and MOD ban smoking in all their hospitals, clinics and health centres.
1977
Amendment to the Trades Description Act 1972. Government health warning: 'Smoking is
dangerous to health' on cigarette packets and advertisements mandatory. Exemptions are
international magazines not printed locally.
92
'Poison Control: Fatwa on smoking should be followed for the good of all', The New Sunday Times Press (Malaysia)
Berhad, March 26th 2000.
93 Assunta, M., CAP, (2000), Pers Comm.
24
1979
1980
1981
1981
1981
1982
1982
1982
1982 March
1983
September
1984
1984
October
1985 March
1985
October
1985
October
1985
1986
November
1987
February
By 1987
1987
1987
November
1988 July
1988
November
1988
1988
1988
1991
1992
November
Tobacco ads not allowed to feature humans, then restricted in number, and then not
allowed before 9 pm. Health warning originally silent, but then voiced-over.
World Health Theme 'Smoking or Health' celebrated.
MOH prepares code of practice for cigarette advertising and sales promotion.
Smoking banned in air-conditioned train coaches and in buses.
Reversal of MAS converting horizontal to vertical ban. Non-smoking seats increased to
55-70%
Directive by Chief Secretary of Cabinet prohibiting government servants smoking at work
in government offices and vehicles except in toilets and canteen.
Standard methods formulated by MOH and tobacco companies to monitor and introduce
progressive reduction of tar levels.
Budget: 30% tobacco tax increase.
Cigarette advertisements banned on radio and television, and in government publications.
Other restrictions were placed on advertising in the press, cinemas and outdoor posters.
First National Workshop on Tobacco or Health organised by ASH Committee of MMA,
National Cancer Society, Heart Association and Consumer Association (FOMCA) attended
by >100 participants.
Circumvention of television ban by brand names on non-tobacco products such as clothes,
travel and gold items. Protests unsuccessful.
MMA launch Superman campaign with budget of US$5,000.
Code of Advertisement enforced. Further Guidelines for all types of cigarette
advertisement issued by Censor Board of Ministry of Home Affairs.
Conference on Smoking and Health, Kuala Lumpur UICC, ASH-MMA, FOMCA, Cancer
Society and MOH.
* First criticism by tobacco industry.
International Union Against Cancer/International Organization of Consumers Unions
Workshop 'Smoking Control Strategies', Penang
Ministry of Home Affairs issued 'Guidelines for all types of cigarette advertisements,'
which included restriction on content, restriction on certain promotions such as contests,
and a compulsory health warning.
Inaugural Malaysian No-Smoking Day Campaign.
5-Day Plan to Quit Smoking Classes.
Annual national non-smoking day/week. 5-day quit plan
US$25 million spent on tobacco advertising.
Malaysian No-Smoking Week Campaign.
Memorandum and campaign to ban smoking on aircraft.
Malaysian No-Smoking Week Campaign.
Ipoh Municipality extended smoking bans to any public hall where performances are
shown, & fine doubled to $400
Budget: 5% increase in tobacco tax.
US$32 million spent on tobacco advertising.
Tax increases
100% increase in tobacco tax (prices up 10-30%)
25
1994 May
Control of Tobacco Products Regulation 1993 (Implemented 15 May 1994)
3. Advertising:
Prohibition of direct advertising of cigarettes.
(previously just electronic media)
Brand names still allowed.
Direct tobacco advertising in imported print media allowed.
4. Ban on free samples of cigarettes
5. Ban on sponsorship
6. Labelling
Single, fixed health warning
Levels of tar and nicotine to be labelled.
Tar and nicotine must not exceed 20 mgs and 1.5 mgs respectively.
8. Minors
Ban on sales to <18 years.
9. Vending machines
Vending machines for tobacco products banned.
10. No-smoking areas. Smoking prohibited in:
*
amusement centres
*
theatres
*
hospitals and clinics
*
public lifts
*
air conditioned restaurants^
*
public transport
*
any specified building as the Minister thinks fit
^Flexibility is given to air-con restaurants, where these places are
allowed to provide smoking areas not exceeding 50% of the floor space, provided they
have adequate air ventilation and extraction systems.
Penalty
An offender is liable to a compound not exceeding Malaysian ringgit
RM 1,000 or a fine not exceeding RM 5,000 or to imprisonment for a term not exceeding 2
years.
1994 May
The Malaysian government will give cigarette manufacturers up till the end of 1994 to
comply with the new Control of Tobacco Product Regulations 1993, which come into force
on 15 May.
Malaysian Government banned rock concerts sponsored by RJ Reynolds, based on police
information that the concerts promoted smoking, consumption of alcohol and free mixing.
World No Tobacco Day celebrated.
The Cabinet directed the Health Ministry to act on small restaurants which fail to provide a
proper system of ventilation for their smoking section. Owners who fail to do so will have
to declare their premises no-smoking restaurants.
Smuggling of tobacco and cigarettes into Malaysia amounted to a loss in revenue to the
industry of about RM170 million annually.
Smoking ban on Malaysian Airlines except for Japan.
National Fatwa Council ruled smoking was 'forbidden'
A total of 1124 summons was registered on smokers in the state of Negeri Sembilan under
the Control of Tobacco Product Regulation, 1993. The offenders were caught smoking in
public places designated as no smoking areas under the regulation. The total compound
collected from the offenders was RM 94,635
A total of 9348 students were caught smoking in schools which is a designated smoking
area as specified under the Control of Tobacco Product Regulation, 1993.
Cabinet extended smoking prohibited areas to include 11 more places - Banks and financial
institutions; sport complexes including stadiums (whether closed or open); shopping
complexes; air-conditioned shops(including restaurants or any eating places); government
offices; transport terminals, Airports (except some designated areas), schools (including
kindergartens, nursery, etc), Institutions of higher learning (excluding hostels and open
spaces); service counters of Telekom & Pos Malaysia; public halls (while in use by the
public)
Ban on possession, chewing and smoking tobacco - under 18
Top Advertisers
1994 May
1994 May
1995 March
1995
1996 Jan
1996
199
7
1997
1997 April
1997 April
1997
26
1998
1999
2000
Dunhill accessories
US$m = 3.8 Ringgit m = 16.6
B&H Bistro
US$m = 3.5 Ringgit m = 15.1
Kent Horizon tour S/B US$m = 1.9 Ringgit m = 8.1
The import of dried tobacco leaves has increased from 5 million kg in 1997 to 7 million kg
in 1998 due to the effect of El Nino
701 smokers were penalized under the Control of Tobacco Product Regulations, 1993 in
the state of Sarawak. Out of the 701 offenders, 48 were under 18 years old.
67% increase in sales tax on cigarettes, from 15% to 25% now. Raising cigarette prices by
30 Sen.
Source: Judith Mackay "Summary of Action and Events, UICC Visit; National Health and Morbidity Survey, (1986),
(1996); National Poisons Centre[web page](2000) http://www.prn.usm.my
27