In a statement, JTI Malaysia managing director Cormac O’Rourke welcomed the strengthening of the Multi-Agency Task Force with the participation of the Malaysian Anti-Corruption Commission (MACC) and the National Financial Crime Centre.

“We believe this task force is the right vehicle to combatting the black economy,” he said, referring to the announcement made during the tabling of the federal budget today.

He added that they were particularly happy with the announcement that cigarette transhipment will be limited to certain ports, as they cite transhipment as a loophole that has been exploited for many years.

“These are necessary measures to address a key smuggling channel for contraband cigarettes which has resulted in massive losses to the country over the years,” he said.

O’Rourke added that the government’s decision to not increase excise tax for cigarettes will ensure that consumers aren’t compelled to purchase illegal tobacco and vaping products due to the current economic constraints.

“We also hope the government will fast track the implementation of the new anti-illicit tobacco measures.

“Any recovery of lost tax revenues by Putrajaya will also help the government financially,” he said.