The Malaysian Singapore Coffeeshop Proprietors’ General Association representing over 20,000 coffeeshop operators in Malaysia, said it was surprised by the proposed measures to ban display of plain packaging of cigarettes announced by
Deputy Health Minister, Lukanisman Awang Sauni in the recent Parlimen session.
The association said “With the passage of the bill, we understand Government wants to roll out measures to regulate all products including e-cigarettes. Nevertheless, rushing into such decisions is unwise. It seems like the Government wants to implement everything at one go when the focus should be on e-cigarettes. To this day, we have not been consulted regarding these proposed measures, which will significantly affect the livelihood of retail businesses.” said Wong Teu
Hoon, The President of Malaysia Singapore Coffeeshop Proprietors’ General Association.
Based on a report commissioned by MSCSPGA, approximately up to MYR 620 million incurred and an estimated RM 277 million annually thereafter to ensure continued compliance for display ban. The cost is substantial for retailers it noted particularly during a challenging period marked by a weakening ringgit, escalating cost of living, and increased cost of doing business.
Wong Teu said currently, the sales of legal tobacco products in retail shops make up 30% of total revenue. In Malaysia, close to 60% of tobacco products in the market today are illegal. The proposed measures will worsen the illicit trade in Malaysia he said. Notably, display ban will blur the public’s perception of the difference between legal and illicit tobacco products given the existing trend for illicit products to be sold ‘under the counter’ by non-compliant retailers. On the other hand, it is going to be difficult to distinguish legal and illegal product with plain packaging and posing a challenge for retailers and enforcement agencies to ascertain the legitimacy of the products.
The association said it is astonished that the Government intends to curtail the legal products rather than doubling down on the illicit trade on the ground.
“We are supportive of MOH’s agenda in reducing the number of smokers in Malaysia. All we ask is to be consulted and for our views to be heard. In line with Malaysia Madani core values to increase SMEs’ resilience, we hope to be invited to share our opinions. Therefore, comprehensive consultation, briefing, and impact study should be held with retailers.”
