Source: VapingPost. Nedal Salem, the general manager of BAT Malaysia, has stated that the black market currently holds about 60% of the entire market. "Smugglers are also using ships to transport black market goods. Therefore, we urge the government to continue to strengthen law enforcement and maintain policy stability, particularly in coastal areas. This includes narrowing the price gap between legal tobacco products and black market tobacco products," he said in a statement released alongside the group's 61st annual meeting. In 2020, Cormac O'Rourke, managing director of Japan Tobacco International Malaysia, stated that Malaysia must consider losses from illegal use of e-cigarettes, estimated to be around RM2 billion annually, in addition to the annual loss of RM5 billion in revenue. He suggested prohibiting the transportation of cigarettes and designating a single point of entry to better support law enforcement efforts. He also suggested the government should continue to suspend the increase of consumption tax to prevent further losses.
It is well-known that major tobacco companies have been involved in highly organized smuggling activities for many years. However, some people believe that their illegal trading is actually intended to prevent the government from implementing reforms that would benefit citizens. In the above statement, O'Rourke is using the issue of illegal trade as a reason for authorities to postpone implementing tobacco taxes. Experts have pointed out that if the tobacco industry truly cares about the black market, it would support the tendering process of the Secure And Recognize Smokers (SARS) program to establish a comprehensive tracking and tracing plan. This plan would provide a very practical solution to combat illegal trade, to be controlled by the government and able to prosecute any participants in parallel trade. The system has been identified by the World Health Organization (WHO) as one of the most effective tools for getting rid of the black market, but the tobacco industry has actively opposed it.
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