Letter to Editor
THE Malaysian Singapore Coffeeshop Proprietors’ General Association (MSCSPGA) which represents over 20,000 coffeeshop operators in Malaysia is once again taken by surprise on the proposed display ban and plain packaging measures announced by Deputy Health Minister Lukanisman Awang Sauni at the recent Dewan Rakyat session.
With the passage of the bill, we understand that the government wants to roll out measures to regulate all products including e-cigarettes.
Nevertheless, rushing into such decisions is unwise. It seems like the government wants to implement everything at one go when the focus should be on e-cigarettes.
To this day, we have not been consulted regarding these proposed measures which will significantly affect the livelihood of retail businesses.
Based on a report commissioned by our association, an estimated RM620 mil be incurred as the first-time cost to comply with the display ban with a subsequent RM 277 mil annually to ensure continued compliance of the display ban.
Who will shoulder the burden of these proposed measures? The cost is substantial for retailers, particularly during a challenging period marked by a weakening ringgit, escalating cost of living and increased cost of doing business.
Currently, the sales of legal tobacco products in retail shops make up 30% of total revenue. In Malaysia, close to 60% of tobacco products in the market today are illegal.
Henceforth, the proposed measures will worsen the illicit trade in Malaysia. Moreover, a display ban will blur the public’s perception of the difference between legal and illicit tobacco products given the existing trend for illicit products to be sold ‘under the counter’ by non-compliant retailers.
On the other hand, it is going to be difficult to distinguish legal and illegal product with plain packaging which poses a challenge for retailers and enforcement agencies to ascertain the legitimacy of the products.
It is astonishing that the government intends to curtail the legal products rather than doubling down on the illicit trade on the ground.
We are supportive of Health Ministry’s (MOH) agenda in reducing the number of smokers in Malaysia. All we ask is to be consulted and for our views to be heard.
In line with Malaysia Madani core values to increase SMEs’ (small medium enterprises) resilience, we hope to be invited to share our opinions. Therefore, a comprehensive consultation, briefing and impact study should be held with retailers. – April 6, 2024
Wong Teu Hoon is president of the Malaysia Singapore Coffeeshop Proprietors’ General Association (MSCSPGA).
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image credit: Harian Metro
