Illegal tobacco trade

Malaysia’s tobacco black market reaches critical levels

The tobacco black market remains a significant national concern, with illegal cigarettes still widely available despite ongoing enforcement efforts.

Tobacco black market refers to the supply, distribution and sale of smuggled cigarettes, also known as contraband cigarettes, which are smuggled into the country from neighbouring countries without the payment of duties and taxes, without hygiene checks, and in non-compliance with the Control of Smoking Products for Public Health Act 2024 (Act 852). The tobacco black market continues to thrive due to the large price gap with legal cigarettes, where illicit cigarettes are priced from as low as RM3 – RM5 per pack.

As of end-2025, according to NielsenIQ’s Illicit Cigarette Study (ICS), the tobacco black market accounts for 54.40% of the cigarette trade in Malaysia.

Malaysia enforcement in action

Malaysia’s intensified enforcement initiatives, supported by strong government commitment, have delivered tangible progress in tackling the tobacco black market. BAT Malaysia remains committed to working closely with the Government and law enforcement agencies to help build a fair, transparent and level playing field for legitimate businesses. We will continue to support the Government in strengthening the fight against the tobacco black market.

Monitoring the tobacco black market

The Illicit Cigarette Survey (ICS), conducted by independent research company NielsenIQ and commissioned by the Confederation of Malaysian Tobacco Manufacturers (CMTM), is a credible and established reporting tool that conducts in-depth qualitative market research on illicit cigarette incidences across Malaysia. It reports on illegal cigarette incidences, top illegal cigarette brands and how the data is collected.

ICS is conducted six times a year using a robust empty pack survey methodology across all states in Malaysia. The report provides a broad and consistent view of the illicit cigarette landscape, helping policymakers and enforcement agencies understand the scale, movement and composition of the black market.

British American Tobacco Malaysia - Illegal tobacco trade