The incidence of illicit cigarettes in Malaysia decreased by 1 percentage point year-on-year to 55.0%, marking the lowest level since the peak of 63.8% in 2020.

“JTI Malaysia extends its gratitude to the Government, particularly the Ministry of Finance, the Royal Malaysian Police (RMP), and the Royal Malaysian Customs Department (RMCD), for their policies and stringent enforcement against illicit operators,” stated Juliana Mohd Yahaya, General Manager of JTI Malaysia. The sustained efforts by Malaysian Law Enforcement Agencies, coupled with the ongoing tax moratorium by the Ministry of Finance, have significantly contributed to the reduction in illicit cigarette incidence. “We must maintain this momentum and look forward to closer collaboration with relevant agencies through the Multi-Agency Task Force, led by the Ministry of Finance, to further reduce the incidence of illicit cigarettes,” added Juliana.

However, despite the commendable efforts of enforcement agencies, the NielsenIQ Illicit Cigarettes Study 2024 revealed a surge in counterfeit tax stamps, now comprising 13.8% of the market, up from 8.7% in 2023. JTI Malaysia continues to advocate for the Government to transition from paper-based tax stamps to digital tax codes, aligning with the Government’s digitalisation drive.

While a 5.2 percentage point decline in illicit white cigarettes (from 39.5% in 2023 to 34.3% in 2024) was observed, the legal industry volume remained flat as consumers shifted to vaping products. E-liquids containing nicotine have been exempted from the Poisons Act 1952 since 1 April 2023, but regulations under the Control of Smoking Products for Public Health Act 2024 will be implemented in stages, starting with the mandatory registration of tobacco products by 1 April 2025. “The Government’s move towards regulatory parity for vaping products is a step in the right direction,” Juliana concluded.

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