E-Malt.com News article: Malaysia: Malaysian brewers join forces to set up confederation

Malaysia's two beer and stout breweries have joined forces to set up the Confederation of Malaysian Brewers Bhd, an industry group that will become the voice of breweries in the challenges faced by the industry, Bernama news agency posted on July 5.

Besides undertaking joint collaborative initiatives, the Confederation will also promote and look into the needs of the Malaysian brewery industry.

Tan Sri Ajit Singh has been appointed as its Executive Director while the Governing Council members would comprise representatives from the breweries, Carlsberg Brewery Malaysia Bhd and Guinness Anchor Bhd, the founding members of the confederation.

Ajit joined the Malaysian Foreign Service in 1963, serving in various positions in the Ministry of Foreign Affairs and at Malaysian Missions abroad including Canberra, Addis Ababa and New York, the confederation said in a statement.

Ajit had also been Malaysia's Ambassador in Vietnam, Austria, Brazil and Germany.

Among the challenges the brewery industry expects to face are political, social and environmental related matters and these challenges are expected to escalate over time with recent developments such as security ink, higher excise duty, legislation and flat growth, it added.

"It is therefore essential that the industry comes together to tackle and overcome these challenges. A common platform over matters of common interest will also make it easier to conduct dialogues with the Government," said Ajit.

The industry, whose principal activity is the production of beer and stout for domestic and foreign markets, in total, pays close to RM1 billion in total excise duty and sales tax, said the confederation.

On top of this, the industry pays approximately RM75 million yearly in revenue taxes while the export of the industry's products overseas contributes to Malaysia's export earnings, it said.

To-date, the industry employs over 1,000 full-time employees and this escalates to approximately 500,000 people through indirect employment, where the industry provides businesses through distributors, packaging materials suppliers, transporters, retail outlets, media and advertising, it said.


06 July, 2005