THE Malaysia Singapore Coffee Shop Proprietors’ General Association (MSCSPGA) has urged the government to take a stronger and more practical action to tackle counterfeit cigarette trade, warning that rising costs and widening price gaps are placing legitimate retailers under increasing pressure.
The association’s reaction follows the recent release of the Illicit Cigarette Study (ICS) 2025 which shows that the national prevalence of illicit cigarettes remains high at 54.4% – only a 0.4% drop from January 2025 when the rate was at 54.8%.
This means that more than half of all cigarettes consumed in Malaysia continue to come from illegal sources.
At one hand, MSCSPGA acknowledged and appreciated the continued efforts by enforcement agencies, particularly the Royal Malaysian Customs Department and other authorities, for their sustained operations to disrupt smuggling routes, seize contraband and curb illegal supply.
“We’ve seen more seizures at retail outlets selling illicit cigarettes,” observed the Association’s president Wong Teu Hoon.
“Enforcement agencies have shown professionalism and determination, often operating under difficult conditions. These efforts are important and deserve recognition.”
However, Wong stressed the need to view the issue from today’s cost-of-living situation whereby coffee shop operators and small retailers are already facing higher operating costs, including rental, utilities, labour and raw materials.
“Legal cigarette prices have gone up and customers are already feeling the pressure from higher living costs. At the same time, illegal cigarettes are being sold for as low as RM5 which is more than half the price of legal products,” he stressed.
“This makes it very hard for us as retailers who follow the law and sell at the proper market price.”
As such, MSCSPGA regarded such practice as unfair to businesses that comply with regulations and pay taxes as they must compete with illegal products that avoid duties and sell at much lower prices.
“It’s very frustrating for us as we’re trying our best to follow the rules yet the demand for illegal cigarettes is still high given their much cheaper pricing. The government may need to look at other practical ways to address this issue,” lamented Wong.
“Enforcement is necessary but solutions should also take into account retail realities and consumer behaviour. We need an approach that supports honest businesses.”
Established in 1947, MSCSPGA currently has over 44 affiliates and 20,000 members throughout Malaysia and Singapore. The primary role of the association is to protect the rights and businesses of its members. – March 3, 2026
Main image credit: Batam News Asia
