KUALA LUMPUR, July 21 — Tien Wah Press Holdings Bhd, the packaging printer for the tobacco industry, is set to close its printing business here following the Malaysian shutdown of one major customers, British American Tobacco (BAT).
In a filing with Bursa Malaysia yesterday, Tien Wah said that there is “no need” for a printing base in Malaysia after BAT’s decision to shift its operations to other countries.
Tien Wah added that it would transfer its production volumes to neighbouring Vietnam and Indonesia to improve its position in servicing BAT, which has been stopping Malaysian operations in stages since March 2016.
BAT is expected to finish phasing out its operation out of Malaysia in the second half of this year, laying off 230 workers in the process. It has cited a challenging business environment as the reason for it moving out.
Tien Wah said that its cessation is expected to make 237 employees redundant, with a cessation cost of RM 12.19 million.
