BAT Malaysia has commended the government on announcing its measures to stop the tobacco black market in its 2021 Budget, according to a company press release.

Malaysia is currently the number 1 worldwide when it comes to illegal cigarettes which make up 65 per cent of the entire market. The Malaysian government’s move to announce new measures in fighting the black market in its Budget 2021 was welcomed by British American Tobacco Malaysia (BAT Malaysia). The company said that the action was both timely and necessary and sees the measures as the first step to disrupting the supply of illegal cigarettes in Malaysia, as stated in the official press release.
“We are thankful to the Finance Minister and the Malaysian Government for acknowledging the severity of the tobacco black market and taking a bold step towards addressing this issue,” said Jonathan Reed, Managing Director of BAT Malaysia.
“High taxes on legitimate cigarettes have created a huge demand for cheap, illegal cigarettes. The tobacco black market not only causes the loss of billions of ringgit in uncollected tax, it also funds crime, fuels corruption and drives the youth smoking rate,” he continued.
“Moving forward, measures to enhance enforcement must be accompanied by excise reforms to really make an impact on the tobacco black market. The price gap between legal and illegal products is currently far too wide, creating a situation that enforcement alone cannot address.
“Ultimately, we believe Malaysian consumers want to do the right thing. If given a viable opportunity to choose a legal alternative at a reasonable price, most would prefer not to put money in the hands of criminals,” concluded Reed.