KUALA LUMPUR, Malaysia’s brewing industry has urged the government to keep excise duty rates on beer unchanged, warning that any increase could fuel illicit trade, cut into tax revenues, and threaten jobs across the sector.
The Confederation of Malaysian Brewers Bhd (CMBB), representing Carlsberg Brewery Malaysia Bhd and Heineken Malaysia Bhd, released findings of an independent study showing the industry contributed an average of RM7.1 billion to the economy in 2022–2023, equal to 0.4% of Malaysia’s GDP.
The brewing industry has called on the government to maintain the current excise duty rates on beer, saying the freeze can help curb illicit trade in beer, prevent revenue leakages as well as provide employment.
The study, conducted by the Southeast Asia Public Policy Institute and the University of Nottingham Malaysia, also found that the sector generates RM3.3 billion in annual tax revenue — around 1.5% of the government’s total tax collection — while supporting more than 52,000 jobs across brewing, logistics, retail, and hospitality.
CMBB noted that Malaysia already ranks among the countries with the highest beer tax rates globally. Raising duties further, it said, would widen the price gap between legal and illicit products, undermining both government revenue and industry stability.
In a joint statement, Carlsberg Malaysia managing director Stefano Clini and Heineken Malaysia managing director Martijn van Keulen highlighted the sector’s role in driving employment and industrial growth. They also commended the Multi-Agency Task Force, led by the Finance Ministry together with Customs and the police, for ramping up enforcement against smuggling and illegal beer sales.
“We look forward to further collaboration with the government to safeguard the brewers’ economic contribution, strengthen enforcement, and support Malaysia’s long-term policy goals,” they said.
The brewers also reaffirmed their commitment to Malaysia’s broader development and sustainability priorities, including the 13th Malaysia Plan, the New Industrial Master Plan 2030, and the Circular Economy Blueprint, pledging to work with stakeholders to advance sustainable growth and industrial competitiveness.
