© Nikkei Markets
KUALA LUMPUR (Jan 23) — Malaysia’s Fraser & Neave Holdings will invest 30 million ringgit ($7.3 million) to expand production capacity as part of its capital expenditure program for this fiscal year that started Oct. 1, even as the beverage maker seeks to absorb higher cost due to a proposed sugar tax, its chief executive said Wednesday.
“More than 90% of the existing products will be affected by the sugar tax,” Lim Yew Hoe said at a news conference. “Raising product prices will be our last resort.”
The company is exploring alternatives to sugar after Malaysia announced move to tax sugary drinks from April, Lim said.
The company may offer its products in smaller pack size or reformulate some of its products to reduce the sugar content, he added.
– By Gan Pei Ling
– Edited By Abhrajit Gangopadhyay