British American Tobacco Malaysia - What is the impact on Malaysia?
Lost tax revenues
Malaysia is estimated to lose around RM5 billion in tax revenue each year due to the scale of the illegal tobacco trade.
Effects on public health
Illegal cigarettes undermine public health efforts to reduce tobacco consumption and prevent underage smoking.
Unlike legal cigarettes, which are manufactured and sold in compliance with hygiene, quality and regulatory requirements, illegal cigarettes disregard these controls, including limits on tar and nicotine.
Criminality
The illegal cigarette trade fuels criminal activity. Worth billions of dollars globally, it is increasingly linked to organised crime.
How can Malaysia address the illicit cigarette trade?
Government agencies and the private sector both have a role to play in tackling this issue.
Key priorities include:
- Reducing consumer demand through greater public awareness
- Strengthening deterrence through tougher penalties for repeat offenders
- Improving product authentication and supply-chain visibility through stronger track-and-trace measures
- Maintaining sustained enforcement pressure against illicit trade.