MALAYSIA
The government could potentially lose as much as RM6 billion (US$1.43 billion) in taxes from cigarettes and vaping products due to poor enforcement against smugglers, Japan Tobacco International Berhad (JTI Malaysia) recently announced.
JTI Malaysia managing director, Cormac O’Rourke, disclosed that currently one in seven Malaysian smokers uses illegal cigarettes and vaping products and added that the numbers rex rise exponentially if left unchecked.
O’Rourke said unlicensed vape shops and the trade in illegal cigarettes were growing due to corruption and lack of enforcement of laws regulating the use of nicotine, such as the Poison Act 1952. “The reality is that Malaysia is in the grips of corruption and many institutions are failing and this is leading to a huge problem with illegal cigarettes and illegal alcohol,” he said during a media briefing on “Illegal Cigarette Trade and Vaping: A National Epidemic”.
JTI Malaysia also released the results of its 2019 Wave 1 Illicit Cigarette Study (ICS), conducted between March and May, that showed illegal cigarettes now accounted for 60% of the market, up 2% from last year.
O’Rourke said the Poisons Act should be updated to match current conditions. He then suggested a three-pronged approach that included an independent task force on the matter, a moratorium on tobacco duty increases for three years and a ban on cigarette transshipments in Malaysia.