Illegal cigarettes made up 54.4% of Malaysia’s total consumption in 2025, with fake tax stamp products becoming an increasingly deceptive threat to market integrity.
PETALING JAYA: Illegal cigarettes continued to dominate the Malaysian market, accounting for 54.4% of total consumption in 2025 according to the latest Illicit Cigarettes Study by NielsenIQ.
The Confederation of Malaysian Tobacco Manufacturers noted this figure represented only a slight improvement of 0.6 percentage points from the previous year, underscoring the persistent scale of the illicit trade, The Malaysian Reserve reported.
Incidence rates in East Malaysia showed minor improvements but remained alarmingly high, with Sabah recording 77.3% and Sarawak at 78.8% in 2025.
CMTM acknowledged the coordinated efforts of enforcement agencies like the Royal Malaysian Customs Department and police in strengthening border controls and targeting supply chains.
“The industry recognises the commitment and professionalism shown by enforcement agencies in disrupting illicit cigarette supply chains,” the association said.
Despite these measures, cigarettes with fake tax stamps became more widely available, with national incidence rising by 1.7 percentage points compared to 2024.
Notable increases in FTS products were recorded in Johor, Penang, Melaka, Terengganu, and Kelantan during the period.
“Products bearing fake tax stamps are deliberately designed to mislead retailers and consumers into believing they are genuine and tax-paid,” CMTM warned.
The association highlighted that these deceptive products blur the line between legal and illegal goods, confusing retailers and eroding consumer trust in regulated markets.
CMTM reaffirmed its commitment to collaborate with the government and enforcement authorities to curb illicit activity through information-sharing and engagement.
It also welcomed last year’s government decision to revoke licences of rogue tobacco importers and agents as a crucial step in reinforcing regulatory discipline.
The association stressed that policy and enforcement strategies must continuously adapt as illicit trade tactics evolve, responding to the risks highlighted in the latest study findings.