Expansion considered

British American Tobacco (BAT) is considering expanding its cigarette manufacturing in Malaysia, three years after shutting down its factory in Petaling Jaya, reports The Edge Markets.

BAT opened a new manufacturing facility in Johor Baru last October.

“We have very consciously done that because we want to retain that manufacturing licence,” BAT managing director Erik Stoel was quoted as saying.

“If we withdraw completely, there is a risk we could lose (the licence). Pending the evolution of the market, we could consider whether or not, on the longer term, it could be interesting to produce and manufacture [more] cigarettes in Malaysia again.”

BAT closed its factory in Petaling Jaya because of a surge in market share of illicit cigarettes following an increase in excise duties, among other reasons.

BAT’s profit fell 4.9 percent in 2018 and revenue slid 3.2 percent.