ILLICIT cigarette incidence in Malaysia remains high at 54.4%, relecting only a slight decrease of 0.6 percentage points compared to 2024, said the Confederation of Malaysian Tobacco Manufacturers (CMTM).
Citing the latest Illicit Cigarettes Study (ICS) conducted by NielsenIQ, CMTM further revealed modest improvements in parts of East Malaysia, with Sabah recorded an illicit cigarette incidence of 77.3% in 2025, down from 78.4% in 2024, while Sarawak stood at 78.8%, improving from 80.9% a year earlier.
However, despite these reductions of 1.1 and 2.1 percentage points respectively, incidence levels in both states remain elevated.
“The industry recognises the commitment and professionalism shown by enforcement agencies in disrupting illicit cigarette supply chains,” said a CMTM spokesperson.
CMTM reaffirmed its commitment to continue collaborating with Putrajaya and enforcement authorities to further reduce illicit cigarette incidence, including through information-sharing and constructive engagement on measures that strengthen compliance and market integrity.
The association also welcomed the government’s decision last year to revoke the licences of rogue tobacco importers and agents, describing it as an important step in reinforcing regulatory discipline and deterring non-compliant players.
However, CMTM cautioned that the latest ICS findings point to a growing concern over cigarettes bearing fake tax stamps (FTS), which remain widely available in the market.
Of particular concern, the study shows that fake tax stamp (FTS) incidence increased nationally by 1.7 percentage points compared to 2024, with notable increases recorded in Johor, Penang, Melaka, Terengganu and Kelantan, indicating wider penetration of FTS products across retail channels.
“Products bearing fake tax stamps are deliberately designed to mislead retailers and consumers into believing they are genuine and tax-paid,” the spokesperson continued.
“This undermines confidence in the tax stamp system and weakens the effectiveness of enforcement.”
CMTM further stressed that fake tax stamp products represent a more deceptive and damaging form of illicit trade, blurring the line between legal and illegal products, confusing retailers and eroding consumer trust in regulated markets.
The association said in this regard, the government must take firm and decisive action against all fake tax stamp players, including the removal of such products from the market, to prevent further deception and protect the integrity of the legal tobacco trade. ‒ Feb 26, 2026
Main image: Bernama
