Malaysia To Allow Smaller Cigarette Packs Up To 2010

KUALA LUMPUR (Dow Jones)--Tobacco companies in Malaysia will be allowed to sell packs with less than 20 cigarettes each till 2010, Health Minister Chua Soi Lek said Tuesday.
The ruling reverses an earlier government decision to ban from next year on small packs in a bid to curb smoking.
However, cigarette makers will have to increase the size of their smallest cigarette packs to a minimum 14 sticks, Chua said at a press conference. Some companies sell cigarettes will packs of seven to 10 sticks.
British American Tobacco (Malaysia) Bhd. (4162.KU) and JT International (2615.KU) will gain from the government decision, analysts say.
Cigarette sales this year could drop as much as 10% as the government continues to raise taxes on tobacco and raises spending on anti-smoking measures, analysts estimate.
The sale of smaller cigarette packs appeals to the lower-income group who find the price of a 20-stick pack prohibitive. A 20-stick pack of premium cigarettes now costs MYR6.50 each, up 18% in less than a year.
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