Affin Research: Illicit cigarette market likely to grow

PETALING JAYA: Incessant illicit trade and stringent regulatory risks could potentially cap the long-term growth of the Malaysian tobacco industry, says Affin Research.

According to the brokerage, which has maintained its “neutral” stance on the local tobacco sector, the illicit cigarette market will likely grow further as the legal cigarettes’ floor price continues to increase, thus pressuring the sales volume of players like British American Tobacco (M) Bhd (BAT), Philip Morris (M) Sdn Bhd and JT International Bhd (JTI).