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Focus Malaysia
3 days ago
- Health
- Focus Malaysia
Budget 2026: Cigarette and tobacco tax hikes overdue, display ban enforcement needed
THE Galen Centre for Health and Social Policy has called for an increase in excise duties on cigarettes and other tobacco products. According to its CEO Azrul Mohd Khalib, the enforcement of the open display ban of cigarettes, vape and e-cigarettes embedded under the Control of Smoking Products for Public Health Act 2024 also needs to be carried out. 'The upcoming Budget 2026 should include an increase in excise duties on cigarettes and other tobacco products,' he remarked. 'Increasing the excise tax rate on cigarettes to at least RM0.77 per stick, equivalent to 61% excise tax of the retail price, would generate an additional tax revenue of RM771.8 mil. 'Astonishingly and contrary to global trends, these taxes have remained unchanged since 2015.' According to Azrul, Malaysia spends an estimated RM16 bil annually treating smoking-related illnesses such as cardiovascular disease and lung cancer. 'For every RM1 collected from tobacco excise duties, RM4 is spent on treating smoking related diseases. We do not yet know how much will be spent on treating vape related diseases,' he said. 'The current rate is currently at 42.8%. Increasing the duties to meet World Health Organisation recommendations at 75%, would raise at least RM1 bill more in revenue, potentially bringing it to more than RM5 billion collected from tobacco excise duties. Why are we hesitating? If not now, when?' Azrul stressed that the nation must also be firm on the threat posed by nicotine vape and e-cigarettes, now rapidly replacing cigarette smoking among young people and teenagers. The National Health and Morbidity Survey (NHMS) Adolescent Health Survey 2022 revealed that there has been a decline in the reported rate of smoking among teenagers and adolescents. However, the same report indicated a significant increase in the prevalence of e-cigarette and vape use among this group of people. The rates of adolescents vaping between the ages of 11-18 in Malaysia now exceeds those reported in several countries, including the United States. Despite a ban on open retail display of cigarettes, vape and e-cigarettes embedded in the regulations for the Control of Smoking Products for Public Health Act 2024, it has yet to be enforced. 'It was supposed to be in effect from April 1. Unfortunately, the government delayed its enforcement to October. The effect of this delay can be seen in the continued open retail sales of these products as if the regulations don't exist,' Azrul warned. 'Smokers themselves supported the imposition of the regulation. Evidence from studies have shown that widespread presence of cigarette displays at the point of sale increases the likelihood that youth will start smoking, and stimulate impulse purchasing among existing smokers. 'Experience from countries such as Singapore, Saudi Arabia and Australia with the display ban in place have shown that it works to reduce smoking initiation which is common during adolescents.' ‒ Aug 11, 2025 Main image: 2Firsts
Yahoo
28-02-2025
- Business
- Yahoo
What Does DRB-HICOM Berhad's (KLSE:DRBHCOM) Share Price Indicate?
DRB-HICOM Berhad (KLSE:DRBHCOM), is not the largest company out there, but it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM1.12 at one point, and dropping to the lows of RM0.77. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether DRB-HICOM Berhad's current trading price of RM0.80 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at DRB-HICOM Berhad's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for DRB-HICOM Berhad The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 16.17x is currently trading slightly below its industry peers' ratio of 18.82x, which means if you buy DRB-HICOM Berhad today, you'd be paying a decent price for it. And if you believe DRB-HICOM Berhad should be trading in this range, then there isn't much room for the share price to grow beyond the levels of other industry peers over the long-term. Furthermore, DRB-HICOM Berhad's share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward. Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for DRB-HICOM Berhad. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has already priced in DRBHCOM's positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at DRBHCOM? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio? Are you a potential investor? If you've been keeping an eye on DRBHCOM, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for DRBHCOM, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. While conducting our analysis, we found that DRB-HICOM Berhad has 1 warning sign and it would be unwise to ignore this. If you are no longer interested in DRB-HICOM Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
