Malaysia starts tobacco fight

Malaysia starts tobacco fight

KUALA LUMPUR (Reuter): Malaysia's tobacco industry is losing hundreds of millions of ringgit annually from the smuggling of contraband cigarettes, the national Bernama news agency reported.

Primary Industries Minister Lim Keng Yaik called for effective measures against the smuggling of contraband cigarettes, especially kretek (clove-flavored cigarettes from Indonesia) which made up 17 percent of the local cigarettes market.

Lim, speaking after the opening of Philip Morris's tobacco processing and manufacturing facility, said the sale of cigarettes in Malaysia had steadily declined over the years.

Last year, more than 17.5 billion sticks were sold compared to more than 18 billion sticks in 1986.

Lim said Malaysia would continue to use the resources of relevant enforcement agencies to curb smuggling and sale of contraband cigarettes but hoped that the local cigarette industry would play its part by keeping prices of cigarettes stable.

Philip Morris's 182 million ringgit tobacco processing facility is its first in Asia and is equipped with advanced technology and control systems in tobacco processing and blending.

The bulk of the processed tobacco will be exported to countries in Asia while a small amount will be used domestically, Bernama reported.