KUALA LUMPUR: The Malaysia-Singapore Coffee Shop Proprietors’ General Association (MSCSPGA) urges the government to take stronger, more practical action to tackle the illicit cigarette trade, warning that rising costs and widening price gaps are placing legitimate retailers under increasing pressure.
The association’s comments follow the recent release of the Illicit Cigarette Study (ICS) 2025, which shows that the national prevalence of illicit cigarettes remains high at 54.4%—only a 0.4% drop from January 2025, when the rate was 54.8%.
This means that more than half of all cigarettes consumed in Malaysia continue to come from illegal sources.
MSCSPGA acknowledged and appreciated the continued efforts by enforcement agencies, particularly the Royal Malaysian Customs Department and other authorities, in sustaining operations to disrupt smuggling routes, seize contraband, and curb illegal supplies.
“We have seen more seizures at retail outlets selling illicit cigarettes. Enforcement agencies have shown professionalism and determination, often operating under difficult conditions. These efforts are important and deserve recognition,” said MSCSPGA president Wong Teu Hoon.
However, Wong said the problem must also be seen in today’s cost-of-living situation, where coffeeshop operators and small retailers are already facing higher operating costs, including rent, utilities, labour, and raw materials.
“Legal cigarette prices have gone up, and customers are already feeling the pressure from higher living costs. Meanwhile, illegal cigarettes are sold for RM5, over half the price of legal ones. This makes it very hard for us as retailers who follow the law and sell at the proper market price,” he said.
The association said that such behaviour is unfair to businesses that comply with regulations and pay taxes because they must compete with illegal products that avoid duties and sell at much lower prices.
“We are trying our best to follow the rules, so it is very frustrating for us, but demand for illegal cigarettes is still high; they are cheaper. The government may need to look at other practical ways to address this issue,” Wong added.
“Enforcement is necessary, but solutions should also take into account retail realities and consumer behaviour. We need an approach that supports honest businesses,” Wong concluded.
