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Economic Contribution

TOWARDS SUSTAINABLE ECONOMIC GROWTH

The Company currently operates 15 sales offices across Peninsular Malaysia, Sabah and Sarawak on top of our Singapore operations based in Zhongshan Park.

Carlsberg Singapore Pte. Ltd. also owns a 51% equity share in Singapore importer MayBev Pte. Ltd. (MayBev), which distributes Japanese premium alcohol brands especially Asahi Super Dry, the best-selling beer brand in Japan.

Our economic contribution is twofold. Our operations create value for the local workforce through employment opportunities while also contributing to the national economies of Malaysia and Singapore via direct and indirect taxes, excise duties, and support of the local food and beverage industry.

In Malaysia alone, the Confederation of Malaysian Brewers Berhad (CMBB) – of which Carlsberg Malaysia Group is a founding member – estimated in 2019 that the brewing industry in Malaysia supported 61,000 people in direct or indirect employment with taxes, salaries and profits contributed significantly to nation-building.

Like many industries reliant on consumer sentiment and demand, this contribution was heavily impacted with the advent of COVID-19 and the concurrent national lockdowns and social distancing measures introduced to curb the spread of the pandemic.

Although muted in an extraordinary 2020 pandemic year, the Company continued to contribute RM895.8 million in excise duties to the Malaysian and Singaporean governments for its combined operations, RM53.6 million in corporate taxes, RM9.7 million in Goods And Services Tax (GST) in Singapore and RM80.3 million in Sales and Service Tax (SST) for Malaysia.

This totals RM1.039 billion in combined direct and indirect tax payments to the government.

With on-trade F&B businesses like bars, nightclubs and restaurants compelled to shutter and stay closed during the MCO and Circuit Breaker months in Malaysia and Singapore in 2020, our place in the economic ecosystem is more important than ever before to help the remaining players in our industry survive.

Contraband remains a big challenge for licenced businesses and government revenue. Illegal trade of any kind has always detracted from much-needed economic activity, much less during a once-a-lifetime recession, while also preventing the collection of taxes to help an ailing economy recover.

Previous estimations by CMBB put illegal beer at up to 20% and 80% of total volume sold in Peninsular Malaysia and Sabah & Sarawak respectively.

 As such, the Group welcomes the reformation of the MATF (Multi-Agency Task Force), announced in the Malaysia’s Budget 2021, to combat contraband. We also applaud the Malaysian and Singapore governments for not raising excise duties on beer in 2020, where our combined markets rank second-highest in the world, behind only Norway globally. Malaysia’s gross domestic product (GDP) per capita remains one-seventh that of Norway and a sixth of Singapore.

Nonetheless, through our Malaysian and Singaporean operations, we remain vigorous contributors to SDG targets 8.1 and 8.2 by supporting economic prosperity, higher productivity and innovation by providing decent work and economic growth in the markets we operate in.

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