Cigarette display ban may cost us RM620mil, says coffee shop body

Cigarette display ban may cost us RM620mil, says coffee shop body

Association president Wong Teu Hoon says the proposed new regulations on plain packaging could prove to be a boon for the illicit tobacco trade instead.

Malaysia Singapore Coffee Shop Proprietors’ General Association president Wong Teu Hoon said the plain packaging for cigarettes will blur the public’s perception on the difference between legal and illicit tobacco products.
PETALING JAYA:
The ban on displaying cigarettes and enforcing a plain packaging rule could initially cost retailers up to RM620 million, the Malaysia Singapore Coffee Shop Proprietors’ General Association said.

It said an additional RM277 million a year would also need to be spent on complying with the rules.

In a statement, association president Wong Teu Hoon raised concerns about the substantial burden on retailers, especially amid current economic challenges.

Wong Teu Hoon.

“The cost is substantial for retailers, particularly during this challenging period, marked by a weakening ringgit, escalating cost of living and the increased cost of doing business,” he said.

“Who will shoulder the burden of these proposed measures?” he asked, claiming that the association was not consulted about the initiatives.

Wong expressed support for the health ministry’s attempts to reduce smoking but said it was important to consult with stakeholders and consider their viewpoints.

He said close to 60% of tobacco products sold in Malaysia are illicit, so the display ban and plain packaging measures will worsen the trade in contraband.

“It will blur the public’s perception on the difference between legal and illicit tobacco products, given the existing trend for illicit products to be sold ‘under the counter’ by non-compliant retailers.

“It is going to be difficult to distinguish between legal and illegal products with this plain packaging. This will pose a challenge to retailers and enforcement agencies as to how to ascertain the legitimacy of the products,” Wong said.

On March 14, deputy health minister Lukanisman Awang Sauni announced in the Dewan Rakyat the government’s proposal to enforce plain cigarette packaging, along with regulations for vape packaging.

Plain packaging is aimed at standardising the appearance of cigarette packs. The brand names will be in a plain font and the colours will be standardised, with no unique design features.

Health minister Dzulkefly Ahmad informed the Dewan Rakyat on Monday that draft regulations under the Control of Smoking Products for Public Health Act 2024 will be presented to the Cabinet for approval.

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