KUALA LUMPUR: Smokers can now heave a collective sigh (or puff) of relief as Malaysia’s two largest cigarette companies have decided to revise the prices of their cigarettes to the one before the RM1 hike was announced two weeks ago.
The surprise move by the companies, British American Tobacco (Malaysia) Bhd (BAT), and JT International Bhd (JTI), came after rival Philip Morris (Malaysia) Sdn Bhd had bucked the trend by maintaining its prices last week.
Speculation is rife within the industry that the latest price revision by BAT and JTI may have been due to the "Philip Morris" factor.
An industry observer said the move could have been made after observing consumer trends following the RM1 price hike.
“Many smokers could have switched to brands under Philip Morris because of the previous price hike,” said the observer.
However, BAT managing director Stefano Clini maintained that the move was to ensure that the company remained competitive.
"Our last price increase (announced on September 8) was to alleviate mounting inflationary cost pressure amplified by progressive loss of legal domestic volumes over the years to illegal trade, decline in contract manufacturing volume and an overall very competitive trade and distribution channels.
“In order to remain competitive, we have decided to revert to our prices before September 8," he said in a statement yesterday.