Malaysia: San Miguel Corp., the Philippines' largest food and beverage company's application for a permit to build a brewery and liquor plant in Johor is believed to facing stern resistance from rival beer makers. Mail Money was told that Malaysia's existing brewers are against the move to issue the licence to San Miguel on concerns that its entry here would push prices down, and malign capacity, The Malay Mail posted on July 13.

The two breweries operating here - Carlsberg Brewery Malaysia Bhd and Guinness Anchor Bhd - are believed to be operating at between 60 % and 70 % of their capacity. San Miguel had made a formal application for the permit some months ago, with a commitment to spend as much as US$100 million (US$1 = RM3.80) to exert its presence in Malaysia and Singapore.

San Miguel, the Philippines biggest listed company with a market capitalisation of about US$1.5 billion is 27 % owned by the Philippines Government, while Japan's number two beer maker Kirin Brewery Co Ltd has a 15 % stake.

The Manila-based brewer, which sells nine of every 10 bottles of beer in the Philippines, had acquired over the past couple of weeks the assets of Thai Amarit Brewery Co and set up a new company PT San Miguel Indonesia Foods & Beverages, as part of its seven-country, US$700 million expansion plan.

In Malaysia, San Miguel plans to purchase a 20ha site in Johor to establish a beer and hard liquor facility. If it gets the licence, San Miguel will become only the third brewer operating directly from Malaysia.

In 2003 Malaysia output 1.25 million hl of beer versus 1.4 million hl in 2002.

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