Heineken does not see big im­pact from SST

The Star Malaysia - StarBiz - - News -

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.

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