The Illicit Cigarettes Study, commissioned by the Confederation of Malaysian Tobacco Manufacturers and conducted by JTI Malaysia between June and August, showed that the highest spike in illegal cigarette sales was also recorded in Kuala Lumpur.
From March to May, illegal cigarette sales stood at 56.6%. This increased to 66% from June to August.
The study was conducted through the collection of 51,000 discarded cigarette packs which were analysed for tax evasion features.
JTI Malaysia managing director Cormac O’Rourke said illegal cigarettes accounted for 65% of total cigarettes consumed this year – roughly 12 billion sticks amounting to an estimated loss of RM5 billion.
He said Finance Minister Lim Guan Eng’s comments on tax increments enabling the sale of illegal cigarettes were a positive step.
However, he said the health ministry appeared to be suggesting an increase in minimum cigarette price from RM10 to RM15.
“This makes no sense,” he added. “It is an attack on legitimate retailers and consumers and does not serve the public health agenda.”
He recommended several measures including a moratorium on excise duties for tobacco products and the establishment of an independent body to lead a special task force to tackle the issue.
He also called for a ban on the transhipment of tobacco products throughout the country.
According to the study, 10% of smokers in the country use vape products.
Under current laws, all vape products containing nicotine are illegal.
The sale of nicotine products is regulated by the Poisons Act 1952.
O’Rourke said JTI had been unsuccessful in obtaining a licence for vape products.