Smoking ban, a crisis in the making, say stakeholders as black market, tax leakages to rise
Confederation of Malaysian Tobacco Manufacturers urge health ministry to carry out a science-based approach to lessen the impact of smoking.
Tobacco manufacturers say black market currently commands close to 60 percent of the total market in Malaysia and over the last five years, Putrajaya has lost to the tune of RM25 billion in tax leakages to the tobacco black market.
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SHAH ALAM - Tobacco manufacturers are up in arms over the health ministry's intent to table laws to ban the sale of tobacco and other related products to anyone born after 2005 in the country, stating the move will backfire.
The Confederation of Malaysian Tobacco Manufacturers (CMTM) consisting of British American Tobacco (Malaysia) Bhd, JTI Malaysia and Philip Morris (Malaysia) Sdn Bhd said the proposal is similar to that of New Zealand.
"But it is untested, unproven and without any scientific evidence.
"Such a move may prove counter-productive and further fuel the black market which will see syndicates benefiting the most as illicit activities fund criminal activities," it said in a statement.
This comes after the health ministry's technical advisor Dr Helmy Haja Mydin said the new Tobacco and Smoking Control Bill in the next Parliament sitting mid this year to replace the old.
Some of the measures included are a ban on the display of cigarettes at outlets and a ban on tobacco products including vape and e-cigarettes to those born after 2005.
Tobacco manufacturers further said black market currently commands close to 60 percent of the total market in Malaysia and over the last five years, Putrajaya has lost to the tune of RM25 billion in tax leakages to the tobacco black market.
"A generational smoking ban would only worsen this situation as a complete prohibition leads to rise in the tobacco black market," it added.
Citing Bhutan as an example, it said a ban did not work as reports have shown that the country has a thriving tobacco black market despite the ban.
"The Malaysian government has made some positive headways in managing the tobacco black market crisis, following the multiple measures announced two years ago during the Budget 2021 such as transhipment restriction," it said.
Introducing the generational ban will undermine these measures in tackling the tobacco black market and erodes any efforts Putrajaya has made against the black market," it added.
Instead of an outright ban, CMTM Malaysia had urged the health ministry to pursue a science-based approach to lessen the impact of smoking and establish a specific regulatory framework for reduced-risk products.
"Given that the health ministry is preparing to table a new law to regulate tobacco and reduced-risk products in the upcoming Parliament session, it is important that the ministry considers proportionate regulation for all products.
"We also call on the ministry to include industry players in the overall consultation process in developing the laws to ensure views from all stakeholders are taken into consideration," it added.
