Beer industry continues to boost Malaysia’s economy via income generation

KUALA LUMPUR: The Confederation of Malaysian Brewers Bhd (CMBB) comprising Heineken Malaysia Bhd (Heineken Malaysia) and Carlsberg Brewery Malaysia Bhd (Carlsberg Malaysia) saw a moderate growth in the local beer industry, despite operating in a challenging environment including high taxes and the prevalence of illicit alcohol among others.

According to international strategic consultancy firm, Steward Redqueen, winner of the Best Emerging Markets ESG Advisory Team Global 2015 Award, CMBB has contributed significantly to the nation’s overall economic growth.

In 2016, the beer industry contributed RM3.7 billion to the Malaysian economy, or 0.3 per cent of the total GDP, with a direct input of RM2.1 billion in taxes and salaries while indirectly contributing RM1.6 billion through its supply chain, trade partners, and suppliers.

In summary, every litre of the CMBB beverage that is produced and sold in Malaysia generates RM13 to the local economy and RM10.50 in tax revenue for the government.

The beer industry has employed almost 61,000 Malaysians or 0.4% of the nation’s total workforce, which generated close to RM800 million direct and indirect salaries across its value chain.

The employment opportunities can be seen in the areas of Industry, Services, CMBB Breweries, Transportation, Trade, and Agriculture. 2,400 of these are Heineken Malaysia and Carlsberg Malaysia employees, while the remaining 58,200 jobs are indirect jobs at the suppliers and trade partners of the two brewers.

“Heineken Malaysia is a progressive and responsible corporate citizen, focused on the sustainability of its business from barley to bar. We are proud to contribute to the Malaysian economy in a significant way both directly through taxes paid and indirectly through jobs and value created both upstream and downstream.

“As a leading brewer, we continue to promote sustainable growth by developing our people, investing behind our brands and contributing to the local community and planet especially through our SPARK Foundation,” said Heineken Malaysia managing director Roland Bala.

In support of developing the local Malaysian manufacturing and services industry, Heineken Malaysia and Carlsberg Malaysia also source a variety of products such as business services, production process inputs, and packaging materials from local suppliers only.

The two brewers have also invested over RM160 million in various community-building initiatives through the years such as education initiatives, environmental protection and conservation, and responsible consumption.