Coffee shop owners want persistent enforcement, legal cigarette brand registry be made public

 

THE Malaysia Singapore Coffee Shop Proprietors’ General Association (MSCSPGA) has called for continued enforcement against the illegal cigarette trade alongside public release of the Health Ministry’s (MOH) registry of legally registered cigarette brands to better support retailers and consumers.

This follows a consumer perception survey by Wawasanex which found that 68.8% of Malaysians surveyed identified the sellers as a foreign national while 99% described illegal cigarettes as easy or very easy to obtain.

MSCSPGA said the findings reinforce concerns recently raised at Cabinet level by Prime Minister Datuk Seri Anwar Ibrahim who directed strict enforcement against any party found to have abused business licences and visas.

Such abuse has inadvertently enabled the illegal cigarette trade to operate openly at the retail level with foreign workers increasingly being used to sell illicit cigarettes.

“Our members operate legitimate businesses that serve communities across the country. The growing presence of illicit cigarette sales involving foreign workers not only harms legitimate retailers but also exposes illegal practices that allow the illicit trade to thrive,” lamented MSCSPGA’s president Wong Teu Hoon.

“These gaps must be addressed through stronger enforcement and accountability,”

Illegal cigarettes are estimated to sell for less than half the price of legal products with illicit trade costing the government an estimated RM5 bil in annual tax revenue.

‘Sustained, regular enforcement action’

As it is, retailers also face challenges in distinguishing between legal and illegal products which reinforces the need for clearer access to official information to support compliance.

“Coffee shop owners and small retailers are already dealing with rising rental, utilities, labour and raw material costs. Competing against illegal products sold openly at a fraction of the price is simply not sustainable,” asserted Wong

Wong Teu Hoon (seated, middle) with members of the Malaysia Singapore Coffee Shop Proprietors’ General Association (MSCSPGA) 

As the Wawasanex survey also found that 87% of respondents support stricter penalties for those involved in the illegal cigarette trade, Wong said enforcement must remain firm and extend beyond frontline sellers to those enabling the trade.

“Enforcement agencies have taken meaningful action at known hotspots and this must continue without interruption,” he stressed.

“Parties found to be abusing work permits and business licences to facilitate this trade should face the full range of penalties available, including revocation of permits and licences, and shop closures.”

To address the continued impact of illicit cigarette sales, MSCSPGA proposed two additional measures: (i) have sustained, regular enforcement action; and (ii) have public registry of legally registered cigarette brands.

“Enforcement shouldn’t be a one-off effort. Regular and sustained action is needed to ensure illegal cigarette sellers don’t continue operating openly and undermine legitimate retailers who follow the rules,” he mooted.

“The legal requirement already exists. Making the registry publicly available would give retailers and consumers a reliable way to verify legitimate products and make it harder for illicit cigarettes to enter the market.”

Added Wong: “Protecting legitimate businesses requires more than enforcement alone. We need consistent action against illegal operators and greater transparency to help retailers and consumers identify legal products.” –  Focus Malaysia