british american tobacco malaysia - What is the impact on Malaysia?

The illegal trade in cigarettes has a considerable effect on the people and economy opf Malaysia.

Lost tax revenues

The Illicit Cigarette Study 2016 conducted by Nielsen Malaysia revealed that the illegal cigarette trade has overtaken half the cigarette market reaching 57.1% in December 2016 with annual volume of 10 billion sticks, for which taxes/duties are evaded.

As a result, the Government is estimated to lose approximately RM4 billion in excise revenue annually.

Effects on public health

Illegal cigarettes undermine public health initiatives to curb tobacco consumption and underage smoking because it makes tobacco very accessible at extremely low prices. Unlike legal cigarettes which are manufactured and sold in compliance with strict regulated requirements such as depicting graphic health warnings, abiding by the minimum cigarette price at retail and complying with maximum tar and nicotine levels, illegal cigarettes blatantly disregard such regulations.


Illegal cigarettes trade encourages criminality, social ills and possible funding of terrorism activities, as widely reported by the international media*. It is worth billions of dollars worldwide and it's increasingly dominated by organized crime. It is a scourge that has to be addressed through continuous and increased enforcement and harsher penalties on offenders.

The illicit trade in tobacco is not a victimless crime. These films show more about the consequences of illicit trade and how regulatory measures such as plain packaging could see the problem increase worldwide.


Page last updated: 20/09/2017 11:32:38 GMT
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British American Tobacco (Malaysia) Berhad (4372-M)