Malaysia’s incidence of illicit cigarettes last year was lowest since 2020

The incidence of illicit cigarettes in Malaysia decreased to 55.6% in 2023, the lowest since 2020. Strict enforcement actions by authorities led to this decline, but illicit market share remains high, causing an annual tax loss of RM5 billion. JTI Malaysia suggests predictable taxation to deter consumers from illegal cigarettes. Fake tax stamps incidence tripled since 2016, reaching 8.7% of the market in 2023. While legal cigarette industry volume stagnated, there was a shift to vaping products, making Malaysia the 12th largest e-vape market. However, vaping products lack regulation, allowing unsafe marketing and ingredients.