From: The Star Online (Malaysia)
High taxes on cigarettes is the reason that has driven consumers to cheaper alternatives, said Small and Medium Industries Association of Malaysia president Teh Kee Sin.
“Muslim Wholesalers and Retailers Association president Amanul-lah Mohd Maideen called on the Customs Department and government officials to have stricter enforcement to weed out illegal cigarette makers.
According to the Health Ministry, there are over three million smokers in the country, of which 80% are adults.
In JOHOR BARU, following a successful Customs raid of illegal cigarettes recently, The Star team found that a factory on the Indonesian island of Batam is producing thousands of illegal cigarettes daily for sale in Malaysia.
Traders admitted that they preferred to sell smuggled cigarettes rather than the licensed ones due to higher profit margins and huge demand.
Mark, a trader in the city, said he sold 400 to 450 packets of smuggled cigarettes daily.
Another trader said his top three brands were Canyon, U2 and Virginia Star.
In SEGAMAT, a trader known only as Tan said most of the smuggled cigarettes were from Singapore.
“The smugglers ship the goods to a warehouse at the port and slowly bring in the items into Malaysia without being detected due to lack of Customs checks along the border,” he alleged.
In MUAR, a retailer named Ali said even “people driving huge cars” preferred to buy these cigarettes because for RM10 they could buy four packets.
On his personal preference, Ali said: “I only sell them. I do not smoke such cigarettes as I have been told they contained a lot of wood dust and low-grade tobacco.”
In GEORGE TOWN, cheap and unauthorised brands of cigarettes are sold at only selected shops and available only upon request.
“Agents are also hired to move around to sell these cigarettes,” said a source, adding that the illicit brands were a hit with foreign workers.
