Smuggled cigarettes sold at cheap prices continue to pose a major hurdle to Malaysia’s Generational Endgame (GEG) goal of creating a smoke-free generation by 2045, says the Malaysian Council for Tobacco Control (MCTC).
Its president, Prof Dr Murallitharan Munisamy, said raising tobacco excise duties remains one of the most effective tools to curb smoking rates, particularly among young people and lower-income groups who are more sensitive to price increases.
While acknowledging that higher taxes could push some smokers towards illicit products, he stressed that claims linking tax hikes directly to surges in smuggling are often exaggerated by the tobacco industry. Citing the World Bank report Confronting Illicit Tobacco Trade: A Global Review of Country Experiences, he said illegal trade is more closely associated with weak enforcement and governance gaps rather than taxation levels alone.
Murallitharan emphasised that any excise increase must be accompanied by tighter supply chain controls and more robust monitoring systems. He urged Malaysia to swiftly ratify the Protocol to Eliminate Illicit Trade in Tobacco Products under Article 15 of the World Health Organization Framework Convention on Tobacco Control (FCTC).
“Ratification will enhance licensing mechanisms, strengthen track-and-trace systems and improve cross-border cooperation,” he said in a statement.
He also called for better coordination among enforcement agencies, noting that tobacco regulation is currently divided among multiple bodies, including the National Kenaf and Tobacco Board, the Health Ministry, the Royal Malaysian Customs Department and the Solid Waste Management and Public Cleansing Corporation (SWCorp).
According to him, overlapping jurisdictions and limited resources have led to inefficiencies. MCTC has proposed centralising enforcement coordination at the local authority (PBT) level, with clear mandates and sufficient resources to streamline monitoring efforts.
An integrated framework, he said, would help reduce tax leakages, curb the sale of non-duty-paid products, improve retailer compliance and reinforce the effectiveness of higher tobacco prices.
Murallitharan reiterated that achieving the 2045 target requires sustained and progressive excise increases, immediate ratification of the illicit trade protocol and firm measures to shield public health policies from tobacco industry interference, in line with Article 5.3 of the FCTC. He also proposed mandatory guidelines for officials involved in policymaking to safeguard integrity.
The Generational Endgame strategy, incorporated into the Control of Smoking Products for Public Health Act 2024, prohibits the sale, purchase and possession of tobacco and vaping products to individuals born in 2007 and later.
