Tuesday, August 01, 2006

For whatever its worth (8)

Malaysia: A thriving haven for the beer industry

Yes indeed its true. Malaysia stands proud as an Islamic State that produces the best beer and stout in the region.

Both the largest licensed breweries are public listed companies forking in millions of ringgit in profits year after year. Despite confronted with three consecutive years of excise duty increases i.e 10%, 27% and 23.3% respectively, resulting in substantially higher beer and stout prices, and lower consumption these companies still managed to chalk profits, bless the Islamic Hadhari government of Pak Lah!

Guinness Anchor Berhad (GAB) for instance recorded a 9.5% increase in pre-tax profit to RM121mil for the nine months ended March 31, 2006, compared with RM110.5mil in the same period last year.

GABs MD when questioned of the companies future prospect in Malaysia replied:
We are positive about the future, especially with the company's strong market support and loyal following.

This goes to show that the governments act of constantly increasing the excise duty of these products do not deter the manufacturers, and in fact they continue to prosper and bring about profits to themselves as well as the government who coincidentally also heads the Organization of the Islamic Conference or OIC.

Perhaps other Islamic countries should emulate Malaysias success story as far as beer industry is concerned. Im sure Malaysia would be willing to assist in transfer of technology and marketing know how to ensure other Islamic countries prosper as well. That’s the least Malaysia could do as head of the OIC.


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