Heineken does not see big impact from SST
KUALA LUMPUR: The new prices of Heineken Malaysia Bhd’s products following the implementation of the sales and service tax (SST) are expected to be lower than the prices during the goods and services tax (GST) regime in 2015.
The price increase for Heineken’s products is due to take effect beginning Sept 17.
While Heineken is not able to absorb the SST, the businesses that retail its products have the option to absorb the 6% service charge. Speaking at the group’s first-half financial year results briefing yesterday, Heineken Malaysia finance director Szilard Voros expects consumer sentiment to be positive ahead. “We do not foresee that big of an impact from the SST, but this will open up the price gap of contraband beers.
“This is something we need to be careful about. We will need to see if consumer sentiment will change after the implementation of the SST or Budget 2019. However, we still believe it will be high, as compared to the previous periods,” said Voros. Heineken Malaysia has declared an interim dividend of 40 sen per share for FY18, payable on Oct 25 this year.