Concept Of Smoking In Malaysia

Introduction
From the article we may know that British American Tobacco Malaysia(BAT Malaysia) is playing an important role in this article. BAT Malaysia is the clear market leader and ranks amongst the top 25 companies on Bursa Malaysia Securities Berhad in terms of market capitalisation. British American Tobacco Malaysia manufactures and markets high quality tobacco products designed to meet diverse consumer preferences. Their portfolio includes well-established international names such as Dunhill, Kent, Pall Mall, Benson & Hedges and so on. From this article, it tells us that there is an increase on price of cigarettes in Malaysia. According to British American Tobacco Malaysia (BAT Malaysia) (The Star Online, 2013) has announced that there is a 3% increase in price of all its cigarette brands starting from Monday which is 3rd of June 2013. BAT managing director Datuk William Toh says that due to inflationary pressures, labour and input costs, it leads to the rising in operating costs over time and a minor increase in price of cigarettes. The habit of smoking cigarettes is considered to be normal for the generation nowadays. Many people are enjoyed on smoking cigarettes. According to Global Adult Tobacco Survey (2011), the overall percentage of smokers in Malaysia is about 22.9% of the populations. The amount of smokers increasing year by year even though smoking is bad to the health.

Law of demand says that the higher the price of a product, the smaller the quantity demanded for the product. When the price of the product increases, the demand of the product will decrease. There is a negative relationship between the price of product and quantity