JTI Malaysia general manager Juliana Yahaya said that geographical factors, a lack of manpower in enforcement agencies, and the relatively low price points of illicit smokes made it harder to combat the trade of illicit cigarettes in Sabah and Sarawak.

“Illicit trade is much harder to control in East Malaysia than in Peninsular Malaysia because of its multiple border entry points connecting neighbouring countries,” she said at a press conference.

Juliana said West Malaysia still had a higher volume of cigarette sales due to its larger population, but that illicit smokes only made up around 50% of cigarettes in the peninsula.

As a whole, she said the incidence of illicit cigarettes declined to 55% in 2024 after peaking at 63.8% in 2020.

“The decline is attributed to several factors, including the 2021 cigarette transshipment ban, the formation of a multi-agency task force to combat illicit trade, and the ongoing tax moratorium on cigarette sales,” she said.

JTI Malaysia called for stronger action to combat illicit cigarettes, including the enhanced scanning of goods at ports and stricter enforcement of the law.

Illicit vape concerns

Juliana also expressed concern over the government’s new regulations on the vape industry, including an incoming ban on the sale of vapes at stalls and shopping malls.

She said the ban, effective April 1, might lead to a surge in demand for illicit vapes and fuel the growth of the illegal trade.

She said there had been a rise in overall vape consumption over the past few years.

“When stricter regulations, such as nicotine content bans and excise taxes like those on cigarettes, are introduced, smaller producers may struggle to comply.

“There is a high possibility that you will see illicit vape come up as a segment,” she said, adding that the government would suffer tax revenue losses as a result.