Price Drop Alone Won’t Stub Out Illicit Ciggies, Price Hike Won’t Completely Kill The Habit

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Raising cigarette prices alone is not the answer to reduce smoking rates in Malaysia, according to Head of External Affairs at Japan Tobacco International (JTI) Malaysia Muhamad Selamat Tan.

Muhamad Selamat stressed that enforcement and regulatory balance remain critical under the Control of Smoking Products for Public Health Act 2024.

He said pricing policies must be viewed as part of the industry’s ecosystem rather than a standalone mechanism to curb tobacco consumption.

“Measures relating to cigarette pricing should be considered within a comprehensive and balanced regulatory framework,” he said, pointing out that the effectiveness of Act 852 hinges not only on policy design but also on the government’s ability to enforce compliance and clamp down on illicit trade.

He was responding to TRP’s question regarding the appropriate price for regulated cigarettes in Malaysia as it’s widely known that the majority cigarettes consumed in Malaysia are illicit cigarettes that are smuggled into the country.

TRP also spoke to a few smokers who shared how much they spent for their cigarettes on a monthly basis.

READ MORE: Choked Between Smoke – Malaysian Smokers Split Between Legal & Illicit Ciggies

According to Muhamad Selamat, illicit cigarettes continue to command a significant share of the local market, largely due to their affordability compared to legal products.

“In such an environment, price-driven policies risk being undermined if enforcement gaps persist.

“Consumers may simply shift to cheaper illicit alternatives rather than quit smoking altogether,” he added.

He argued that the immediate priority should be a coordinated, multi-agency enforcement strategy targeting illegal supply chains.

This, he added, should be backed by clear reduction targets, defined timelines, and transparent performance indicators to ensure accountability.

Muhamad Selamat also called for a stable tax environment, suggesting that frequent or aggressive tax hikes could inadvertently destabilise the legal market while benefiting illicit operators.

“A period of tax stability would allow the legitimate market to recalibrate, while enforcement efforts are intensified to address illegal trade.

“Any pricing policy must take into account prevailing conditions, particularly the scale of illicit trade and the accessibility of illegal products,” he said.

He reiterated that a tax moratorium could serve as a temporary measure to stabilise the market, giving authorities space to strengthen enforcement mechanisms and improve regulatory compliance.

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Price Drop Alone Won’t Stub Out Illicit Ciggies, Price Hike Won’t Completely Kill The Habit
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