The Confederation of Malaysian Tobacco Manufacturers (CMTM) said the latest Illicit Cigarettes Study conducted by NielsenIQ shows illicit cigarette incidence in Malaysia remains high at 54.4% in 2025, a marginal 0.6%-point decline from 2024. CMTM credited enforcement agencies, including the Royal Malaysian Customs Department and the Royal Malaysian Police (PDRM), for intensified border controls and supply chain disruption efforts.
However, the association flagged rising concern over cigarettes bearing fake tax stamps (FTS), with national incidence increasing by 1.7 percentage points year-on-year and wider penetration reported in Johor, Penang, Melaka, Terengganu and Kelantan. The group urged stronger action to remove such products from the market and reaffirmed its commitment to working with authorities to protect regulatory integrity as illicit trade tactics evolve.