Concerns over Rising Illegal Cigarette Sales in Malaysia

Feb.27.2025

JTI Malaysia study shows 70-80% of Malaysian cigarette market still illegal, despite decreasing trend since 2020.

According to a report by Freemalaysiatoday on February 26th, a study by Japan Tobacco International Malaysia (JTI Malaysia) has shown that despite a steady decline in illegal cigarette trading in Malaysia since 2020, illegal cigarette sales still account for 70% to 80% of the market.

The General Manager of JT International Malaysia, Juliana Yahaya, stated that due to geographic factors, understaffed enforcement agencies, and the relatively low price of illegal cigarettes, combating illegal cigarette trade has become increasingly challenging.

East Malaysia shares multiple border entrances with neighboring countries, making it more difficult to control illegal transactions.

According to Juliana, in West Malaysia, the sales volume of cigarettes is high due to the large population, with illegal cigarettes accounting for only half of the total market share. However, the overall proportion of illegal cigarettes peaked at 63.8% in 2020, but has since decreased to 55% in 2024.

Juliana has expressed concern over the government's new regulations on the e-cigarette industry, including the ban on selling e-cigarettes at booths and shopping centers that will take effect on April 1. She believes that the ban may lead to a surge in demand for illegal e-cigarettes and fuel the growth of illicit trafficking.

She pointed out that e-cigarette consumption has increased overall in the past few years.

When strict regulations are introduced, smaller producers may find it difficult to comply, and illegal e-cigarettes may become a burgeoning area, especially with bans on nicotine content and cigarette-like consumption taxes.

References:

[1] 80% of cigarettes sold in East Malaysia illicit, says tobacco firm

Also Read:

[1] Regulating E-cigarette Sales: The Importance of Control and Support

[2] Malaysia Health Ministry Prepares to Reconsider Full E-Cigarette Ban

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