Menu
7.JPG

Economic Contribution

TOWARDS SUSTAINABLE ECONOMIC GROWTH

Incorporated in 1969, Carlsberg Malaysia Group celebrated its 50th anniversary of brewing excellence and contribution to the local economy in 2019.

The Group currently operates 17 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 contributing to the national economies of Malaysia and Singapore via direct and indirect taxes, excise duties, and support of the local F&B marketplace.

Through our Malaysian and Singaporean operations, we contribute 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.

In Malaysia alone, the Confederation of Malaysian Brewers Berhad (CMBB) estimates that the brewing industry in Malaysia alone supports 61,000 people in direct or indirect employment while taxes, salaries and profits are equal to 0.3% of gross domestic product.

Within the Malaysian context, the biggest challenge for the Group remains the prevalence of illicit beer which is estimated at more than 1 million hectolitres, posing a threat to national tax revenue, local consumers via the risk of contraband beer, and economic betterment to legitimate business. Illicit beer represents an estimated RM1.5 billion loss to the Malaysian government’s tax revenue by occupying around 20% and 80% of total beer sales volume in Peninsular Malaysia and East Malaysia respectively.

Malaysia and Singapore currently have the second-highest excise duty for beer in the world. Beer in Malaysia is taxed at RM175 per litre of alcohol by volume (ABV) while Singaporeans pay SGD60 per litre of alcohol for stout and cider.

Our Malaysia and Singapore operations have collectively contributed over a billion ringgit in taxes and duties in 2019.

It is important to note that while Malaysia’s excise duty rate for beer is the second-highest in the world together with Singapore and only after Norway, its Gross Domestic Product (GDP) per capita is seven times lower than Norway and six times lower than Singapore.

DID YOU KNOW?