Malaysia Must Stop Issuing New Tobacco Import Licences As Fake Tax Stamp Market Surges

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MALAYSIA is losing billions of ringgit every year to an illicit tobacco trade that is becoming more sophisticated and brazen.
The government cannot afford to let the situation spiral further by continuing to grant new import licences without tighter scrutiny.
The scale of the problem is staggering. According to Nielsen’s Illicit Cigarette Study (ICS) conducted in May 2024, more than half of all cigarettes sold in the country (54.5%) are illegal.
This translates to tax losses exceeding RM3 bil annually, money that could have been channelled into healthcare, education, and public infrastructure.
Source: Nielsen’s Illicit Cigarette Study (ICS)Beyond revenue leakage, the flourishing black market also undermines legitimate businesses that operate within the law, thus creating an uneven playing field and discouraging compliance.
One of the most alarming trends is the surge in counterfeit tax stamps. These stamps are designed to trick both consumers and enforcement officers into believing the products are legal.
The Nielsen study shows that the market share of cigarettes with fake stamps nearly doubled from 8.7% in 2023 to 15.6% in May 2024. If left unchecked, this practice threatens to normalise fraud in the tobacco trade and entrench criminal networks in Malaysia’s economy.

Source: Nielsen’s Illicit Cigarette Study (ICS)Stringent measure
At the forefront of this shadow trade are brands such as Bosston and Concept which are imported under the names Mahata Tobacco Marketing, Gillion Tobacco and Long One Trading.
Other companies tied to the illicit economy include PTC International, Milton Tobacco International, VTI Marketing, Asia Pacific Tobacco, JTS International Tobacco, Global 55 Resource and Legasi Jutawan Venture.
Source: Nielsen’s Illicit Cigarette Study (ICS)This raises a pressing question: how many of these companies are operating with legitimate licences and how many are exploiting regulatory loopholes to commit billion-ringgit crimes?
The Malaysian government must take decisive action. It should immediately freeze the issuance of new tobacco import licences, particularly to firms suspected of being involved in the circulation of counterfeit tax stamps.
Licences already held by questionable operators must be subject to full investigation and revoked if wrongdoing is confirmed.
At the same time, transparent criteria should be introduced to ensure that only compliant, 

Allowing unvetted or complicit importers to remain in the system will only perpetuate smuggling, organised crime and tax evasion.
Image credit: BernamaThis will put the credibility of Malaysia’s economic governance is at stake as foreign investors are watching how the country handles regulatory enforcement in high-risk industries.

Malaysia simply cannot continue bleeding billions to an emboldened black market. To protect public finances and consumer safety, the government must move swiftly: freeze new licences, revoke abused ones and ensure only legal, duty-paid products reach the market.
Anything less would signal weakness and further empower the criminal networks thriving on counterfeit tobacco. –  Focus Malaysia

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