JusticeforBursa

Open letter to Government: To save Malaysia, first acknowledge and solve the chronic problem of contraband tobacco!

JusticeLeague
Publish date: Tue, 29 May 2018, 11:44 PM

One have to acknowledge that contraband tobacco cigarette is one of the very serious issues facing Malaysia. Despite efforts from border security, illicit cigarette trade in Malaysia continue to experience exponential growth at 61% of the total cigarette market share. It is a humiliation that legal cigarette market share is only 39%. This means that two in every three cigarette smoked in Malaysia is contraband.

The previous government has failed to acknowledge this problem by increasing excise by 40% in 2015. This has resulted in a giant leap in illicit cigarette market share to grow from 40% in 2015 to 61% in 2018.

It is humiliation to see that Malaysia tops illicit cigarette trade in the world. Perform a google search on illicit cigarette trade and read Wikipedia only to see Malaysia is a big discussion area for illicit cigarette trade.

From wikipedia on Ilicit cigarette trade:

"Illicit cigarettes continue to dominate in Malaysia, where 34.5% of all cigarettes (ITIC 2013), approximately 7.9 billion sticks, sold were illicit. Illicit trade remains prevalent in Malaysia due to its long coast lines, which allow for shipments to be sent from neighbouring nations, such as kreteks from Indonesia, into the East Malaysian states of Sabah and Sarawak (Rejab and Zain 2006). Smugglers have also become increasingly more efficient in unloading, storing, and distributing smuggled cigarettes quickly in local villages; whilst avoiding customs officers. In Lahad Datu (Sabah), locals have become part of the problem, as they frequently purchase illicit cigarettes from illegal immigrants from the Philippines and Indonesia — who openly peddle these goods in a thriving flea market full of smuggled illicit goods. Lax law enforcement further facilitates the prevalence of illicit trade and smuggled goods in this area, as the sale of these illicit goods are responsible for sustaining the livelihood of these illegal immigrants. The low salaries of responsible law enforcement units are highlighted as a contributing factor to the lack of smuggled cigarette seizures. Rejab and Zain (2006) posit cigarette smugglers are notified before raids are conducted by Insiders in law enforcement, providing ample time to conceal shipments of illicit cigarettes. With less than 2% of all shipment containers checked upon arrival at ports (due to high volumes of containers), and low penalties for illicit smuggling, this issue will remain prevalent in Malaysia (and other countries with poor border control) as illicit cigarette smuggling continues to be seen as a lucrative, relatively low risk activity."

https://en.wikipedia.org/wiki/Illicit_cigarette_trade#cite_note-33

Illicit and contraband tobacco is linked directly to organized crime. The higher the share of illicit trade in Malaysia, the more the funding to organized crime. Do we want to see our rebirth nation fall into the hands of criminals?

The war on tobacco smoking is no longer against "No smoking" or "Smoke free nation". Due to the many failures of the previous ruling government in combating illicit trade, Malaysia has became a top destination for illicit contraband trade.

Please set the war on contraband cigarettes a top priority for the government. PLEASE SAVE MALAYSIA

Discussions
Be the first to like this. Showing 4 of 4 comments

Pribumi

Not UMNO members benefit from illicit cig trade?

2018-05-30 03:57

shortinvestor77

PH will fail as well.

2018-05-30 08:33

All Toh

IT take time. Enforcement was not there in the past government, with all the corruption. Hopefully after all the corrupt officer are behind bar, then only we can make it happen. Anyway what we Malaysian can do now, is to help report all those selling contraband good. Maybe can only hope now that those making report will not be arrested.

2018-05-30 09:04

Pavillion

Too lucrative biz due to high tax. Not an easy task. Sometimes manufactures secretly help..to put pressure on gov't...to reduce tax.

2018-05-30 09:08

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