British American Tobacco Malaysia - Illegal tobacco trade

The tobacco black market is by far the legal cigarette industry's biggest challenge. It is the largest player in the total cigarette market in Malaysia. Tobacco black market comprises of largely smuggled cigarettes that come in a variety of brand names which are not belonging to legitimate cigarette companies in Malaysia.

The tobacco black market in Malaysia is fueled by large increases in tobacco taxation, which often results in legal cigarettes being made unaffordable to consumers who then switch to cheap illegal brands which are widely available in the market.

Trade in black market tobacco causes various unintended consequences, for example, it:

•  Reduces the excise collection by the Government.
•  Reduces the potential benefit of welfare and development for the people.
•  Fuels black economy and poses security threat to the nation.
•  Undermines the health agenda of the country with respect to smoking.
•  Undermines shareholders returns/value and jobs in legal tobacco industry.

Whilst the prime responsibility for combating tobacco black market lies with the Government, the legal tobacco industry (Confederation of Malaysian Tobacco Manufacturers - CMTM, of which British American Tobacco Malaysia is a member) has a significant role to play in supporting the Government’s efforts to combat such trade and to protect our brands, trademarks, and business from the black economy.

Tracking and understanding of tobacco black market is necessary in establishing effective strategies to stop the black market. The CMTM commissions Nielsen IQ to conduct Illicit Cigarette Studies (ICS) six times a year via robust empty pack survey methodology covering all states in Malaysia.

2024

 Illicit Cigarettes Study (ICS) In Malaysia, July 2024 Report (1,723 kb) 

 Illicit Cigarettes Study (ICS) In Malaysia, May 2024 Report (1,827 kb) 

 Illicit Cigarettes Study (ICS) In Malaysia, Mar 2024 Report (1,791 kb) 

 Illicit Cigarettes Study (ICS) In Malaysia, Jan 2024 Report (1,834 kb) 

2023

 Illicit Cigarettes Study (ICS) In Malaysia, 2023 Report (808 kb) 

2022

 Illicit Cigarettes Study (ICS) In Malaysia, 2022 Report (721 kb) 

2021

 Illicit Cigarettes Study (ICS) In Malaysia, 2021 Report (726 kb)