Malaysia - slight decrease in illicit cigarettes; JTI Malaysia q1 2010 market share increases..

May 17, 2010 - Trading of illicit (illegal, contraband, smuggled) cigarettes in Malaysia saw a drop from an all-time high of 38.7 per cent (June-August 2009) to 37.1 per cent (October-December 2009), according to a survey. The survey was conducted by Taylor Nelson Sofres RI, an independent international research agency commissioned by the Confederation of Malaysian Tobacco Manufacturers (CMTM).

It is conducted three times a year and the survey methodology is based on the collection of litter packs throughout the country and the verification of mandated security features is provided by Lembah Sari Sdn Bhd, the government appointed vendor, CMTM said in a statement Friday.

CMTM chief executive Shaik Abbas Ibrahim attributed the decline in the illicit cigarettes trade to the integrated enforcement efforts by the various law enforcement agencies. The agencies include Royal Malaysian Customs, Malaysian Maritime Enforcement Agency, Marine Operations Force, Health Ministry and Domestic Trade, Cooperatives and Consumerism Ministry.

Combined with the moderate tax increase in the 2010 Budget, CMTM believes these efforts have helped in the fight against illicit cigarettes.

Shaik Abbas said the industry was still concerned with the 37.1 per cent incidence, which was an extraordinarily high figure, where one out of three cigarette packs in the country was illicit.

Japan Tobacco (JT) International Berhad (JTI Malaysia) is the second largest tobacco manufacturer in Malaysia. In the 1st quarter of 2010 the company continued to improve its performance, growing its market share to 19.6 per cent from 18.5 per cent in the corresponding quarter of last year. JT International expects the challenging operating environment to continue for the remainder of the year with the key challenge being the ban on the sale of cigarette packs containing less than 20 sticks, come June 1 2010. (Malaysia - Health Ministry's proposal to ban the sale of 14-stick cigarette packs beginning June 1, 2010..) Illicit cigarettes continued to present a major challenge to the legal tobacco industry.

References: Increased Enforcement And Moderate Tax Reduce Illicit Cigarettes, Bernama.com, 5/14/2010; JT International's Pre-tax Profit Up At RM50.7 Million In Quarter 1, Bernama.com, 5/13/2010.

Malaysia - some related news briefs:
Malaysia - Health Ministry's proposal to ban the sale of 14-stick cigarette packs beginning June 1, 2010..;
Malaysia - increase in number of women smoking..;
Malaysia - new strategy to penalize retailers who sell contraband cigarettes..;
Malaysia - youth and student smokers may not receive aid from government..;
Malaysia - two tobacco control regulations starting January 1, 2010..
Malaysia - about 368,000 teenager smokers in the country, 50-60 added per day..;
Malaysia - sale of cigarettes in packets of less than 20 prohibited as of June 1, 2010..;
Malaysia - stepping up efforts to curb the trade in illicit cigarettes..;
Malaysia - BAT plans to dispose of a parcel of industrial land..;
Malaysia - ban on cigarette sponsorship for sports will not be withdrawn..;
Malaysia - cigarette-shaped sweets packaged like cigarettes;
Malaysia - Penang consumer group ban cheap cigarettes and increase price on premium..;
Malaysia - Kelantin State Government may not promote staff who smoke..;
Malaysia - excise duty increased on tobacco - another increase could be coming this month..;
Malaysia - smoking limits your quality of life..;
Malaysia - smoking civil servants in Penang to receive free nicotine treatment..;
Malaysia - illicit cigarettes, BAT wants government to slow excise duty increases..;
Peninsular Malaysia - one of three cigarette packs is either contraband or fake..;
Komtar, Penang, Malaysia smoking ban strictly enforced..;
Malaysia student forced to smoke 40 cigarettes in two hours..
Malaysia - PSD and Cuepacs are at odds over the no-smoking rule at government de­­partments and agencies..;
Malaysia: Are tobacco control measures working? - WHO thinks so...;
Malaysia - slowdown in cigarette consumption..;
Malaysia - January 1, 2009 pictorial cigarette warnings..;
Malaysia to hike cigarette prices..;
Malaysia - 25% of all cigarettes sales are illegal...Peninsular Malaysia - one of three cigarette packs is either contraband or fake..;
Komtar, Penang, Malaysia smoking ban strictly enforced..;
Malaysia student forced to smoke 40 cigarettes in two hours..
Malaysia - PSD and Cuepacs are at odds over the no-smoking rule at government de­­partments and agencies..;
Malaysia: Are tobacco control measures working? - WHO thinks so...;
Malaysia - slowdown in cigarette consumption..;
Malaysia - January 1, 2009 pictorial cigarette warnings..;
Malaysia to hike cigarette prices..;
Malaysia - 25% of all cigarettes sales are illegal...

- Malaysia is a member of Southeast Asia Tobacco Control Alliance (SEATCA)..