The National Tobacco Board (LTN) was established on 8 October 1973 as a Federal Statutory Body pursuant to the National Tobacco Board (Incorporation) Act 1973 [Act 111]. Act 111 seeks to establish the National Tobacco Board to properly repair and carry out the tobacco production industry, and to provide for the Board and industry.
Due to the impact of trade competition on the tobacco industry following the implementation of the ASEAN Free Trade Area (AFTA) in 2010 and Government policies promoting the reduction of tobacco use and compliance with the World Health Organization (WHO) Tobacco Control Framework (FCTC), the Government has identified a new growth source to be developed which has the potential to generate income to growers ie kenaf crops.
In this regard, the National Tobacco and Tobacco Board Act 2009 [Act 692] was enacted on 1 April 2010 to provide better allocation for the kenaf industry and the tobacco industry. Implementation of Act 692 has repealed the National Tobacco Board (Incorporation) Act 1973 [Act 111] concurrently with the dissolution of LTN which was replaced by the National Kenaf and Tobacco Board (LKTN). Act 692 seeks to provide better allocation for the kenaf and tobacco industries, dissolve the National Tobacco Board and provide rules for matters incidental thereto.