By KINIBIZ
Hikes in cigarette prices are usually met with grudging acceptance by smokers at large, an unavoidable sin tax for the greater social good. But the abrupt and massive increase of excise duties on cigarettes this week has stirred an unusually strong debate, even among non-smokers.
Apart from the astonishing quantum of increase (up to 40%, the highest in many years), another element factors into the equation – the burgeoning popularity of vaping, a form of electronic cigarettes that is often said to be a cheaper option for heavy smokers.
In the past month, rumours of a clampdown on the sale of vape have gained momentum. Yesterday, it was reported that hundreds of vape stores nationwide were raided by the Health Ministry. Critics say that vape is as bad, if not worse, than smoking cigarettes. The vape industry should be regulated, if not banned outright.
On the other hand, fans of vaping say that it is a good way to gradually wean themselves off tobacco and helps them kick the habit. It is a relatively innocuous recreation, for those who enjoy a puff or two (or more), to get their kicks sans nicotine.
Will a clampdown on vape, coupled with rocketing prices of cigarettes, lead to fewer smokers and a healthier nation? Ironically, it may backfire spectacularly.
Sales of illicit cigarettes, and cheaper low-grade brands, have boomed in recent years due to the constant rise in prices. The big tobacco companies themselves readily admit that this is a major problem. Lax enforcement has created a thriving black market. The latest round of hikes and possible restrictions on vaping could drive more smokers to under-the-radar purchases.
This doesn’t mean you shouldn’t have a good weekend and enjoy the Deepavali holidays next week! To start with, here’s a selection of our best news, analyses and commentaries this past week for your reading pleasure:
There’s fire over smokes: Smokers and cigarette manufacturers are up in arms over as sudden 40% increase in excise duties leads to an unprecedented hike in cigarette prices. Will this drastic move force more smokers to switch to alternatives such as vaping and buying illicit cigarettes? Our resident cat thinks the hike could be counter productive and here’s why.
Malaysia, built by foreign sweat: In the 11th Malaysia Plan, the government has committed to capping the number of foreign workers by 2020 at 15% of the workforce. The construction sector is the perfect place to start reducing the nation’s dependency on foreign labour and the way ahead is clear, but will the government make the right moves to get us there? Read a KINIBIZ exclusive 4-part series here.
RM2 bil bids disparity for 1MDB asset puzzles: Tenaga Nasional Bhd is said to have submitted a RM8 billion bid for ailing 1MDB’ power assets. In contrast, two foreign entities from Qatar and China have submitted a joint bid of just under RM10 billion. Why the huge disparity? Read more about the eyebrow-raising bids here.
How to make electricity cheaper in Malaysia: Could liberalisation of the power sector lead to cheaper electricity prices for Malaysian consumers? Our resident cat certainly thinks so, and here’s why.
A dilemma for Sona’s shareholders: It is nervous times for shareholders of Sona Petroleum Bhd as the clock ticks away to secure a qualifying asset. Will shareholders approve a proposed US$50 million oilfield purchase in Australia ? Or should they allow the company to be liquidated and come away with some profit? Our resident cat weighs the options here.
Malaysia secures big TPPA carve-outs under government procurement: Malaysian negotiators have secured a significantly higher threshold for participation in government procurement under the Trans-Pacific Partnership (TPP) Agreement. Find out more about the historic deal here.
Aeon’s RM100,000 wedding financing draws flak online: How much do you need for to get hitched? Aeon’s ‘Plan Your Dream Wedding’ is offering up to RM100,000 loans for your special day, but almost instantly drew ire from netizens. Read about the backlash here.
Sisters serve crispy delights: A popular street snack makes the leap from pasar malam to plush shopping malls. KINIBIZ meets the founders of the Sisters Crispy Popiah franchise to talk about turnips, peanuts, rolling, slicing and their recipe for success. Read the 2-part enterprise story here.
Like these stories? Get more for just 87 sen a day. At a promotional price of RM318 per year, you can have full access to KINIBIZ online for your daily dose of business updates plus a free copy of our fortnightly KINIBIZ magazine. Click here.
Because whether you prefer online or print, morning coffee tastes so much better when you have the sharpest reads in town to sip to – for a sweet deal at that.
— by Khairul Khalid, Asst News Editor
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