When the Asean Free Trade Area (AFTA) took effect in 2010, domestic tobacco growers, particularly in major growing areas in Kelantan, Terengganu, Kedah and Perlis were affected when the Government decided to terminate subsidies on tobacco farming to comply with AFTA and the World Health Organisation regulations.
Additionally, they were less competitive compared with their lower-cost peers in Thailand, Indonesia, Vietnam and the Philippines.
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