MAMBA urges tougher crackdown as survey links illegal cigarette trade to foreign sellers

 

THE Malaysian Micro Business Association (MAMBA) has called on authorities to intensify enforcement against the illicit cigarette trade following survey findings suggesting foreign nationals play a significant role in the distribution of illegal tobacco products.

According to the survey, 68.8% of illegal cigarette buyers identified foreign nationals as sellers, while 75% of respondents said illicit cigarettes were easy to obtain, highlighting the widespread availability of such products in local communities.

MAMBA president Tan Peng Beng said the findings reflected concerns long raised by micro-business owners operating in neighbourhood retail areas.

“These findings reflect what our members have been telling us for years. Foreign nationals are actively involved in the illegal cigarette trade in many of the same areas where legitimate businesses operate. The survey now provides data that supports what traders have been observing on the ground,” he said.

Tan said the continued presence of illicit tobacco products was placing compliant businesses at a competitive disadvantage.

“Our members comply with regulations, pay taxes and operate legally. Yet they are forced to compete against sellers offering illegal products at significantly lower prices. This creates an uneven playing field and undermines legitimate businesses,” he said.

He also warned foreign nationals involved in the trade that illegal cigarette sales carry serious legal and immigration consequences.

“Selling illicit cigarettes is a criminal offence. Those convicted may face fines, detention, cancellation of work permits and deportation. Individuals who come to Malaysia to build a livelihood should not jeopardise their future by becoming involved in illegal activities,” he stressed.

Tan pointed to a recent enforcement operation in Selayang Baru as evidence that authorities are actively targeting the trade.

Earlier this month, officers from PGA Battalion 19 arrested an Indonesian national during a raid on premises in Kampung Indah, where 389 cartons of illicit cigarettes worth an estimated RM95,000 were seized. The premises was believed to have been used as a storage and distribution centre.

“When three out of four consumers say illegal cigarettes are easy to obtain, it suggests the trade remains highly visible. Continued enforcement is essential to disrupt these networks and deter others from entering the market,” he said.

Tan said the impact of illicit cigarette sales extended beyond individual businesses, affecting the wider economy and government revenue.

“Every customer who purchases illegal cigarettes instead of buying from a legitimate retailer represents lost income for a law-abiding business owner. Across thousands of businesses, those losses become significant,” he remarked.

Malaysia is estimated to have lost approximately RM11.5 bil in government revenue over the past two years due to illicit tobacco activities and continues to record the highest illicit cigarette market share among ASEAN-6 countries.

The survey also found that 87% of respondents supported tougher penalties against individuals involved in the illegal cigarette trade.

Tan said the findings demonstrated strong public support for continued enforcement efforts.

“MAMBA supports the work of enforcement agencies and calls for sustained action at all levels of the supply chain, including retailers, distributors and those who facilitate illegal sales,” he said.

He added that stronger enforcement would help protect legitimate businesses, safeguard government revenue and discourage further expansion of the illicit tobacco market. –  Focus Malaysia