Black market curb critical to break Sarawak’s illicit tobacco addiction

KUCHING, 6 March 2026 – Nearly eight out of every ten cigarettes consumed in Sarawak are illegal , placing the state at the highest level of illegal cigarette prevalence in Malaysia and raising serious concerns over community well-being and youth exposure, said Pertubuhan Transformasi Dayak (TRADA).

According to the latest Illicit Cigarette Study (ICS) by NielsenIQ , illegal cigarettes account for approximately 78.8% of total consumption in Sarawak and 77.3% in Sabah, compared with 54.4% nationwide.

Joseph Anak Janting, President and Founder of TRADA, said the issue should not be viewed solely through an enforcement matter, but as a systemic consumer and market challenge.

“Sarawak’s mean household income currently stands at RM5,504. In rural areas, it is far lower. When illegal cigarettes are sold for as little as RM3 to RM8 per pack, it is not surprising that many adult smokers choose this cheaper option. Due to the cost pressures, these consumers often don’t have the luxury of considering safety standards. They are left with little choice but to disregard the fact that illegal cigarettes are not subjected to proper laboratory testing, or safety verification.”

Black market

“When illegal markets thrive, the consequences extend well beyond the safety of users. There is also the risk of increased exposure among youth and the rise in criminal activity.”

NielsenIQ Illicit Cigarette Study 2025

Joseph further added that enforcement in Sarawak has remained consistently strong. In Sibu, the Royal Malaysian Customs Department seized 8.33 million untaxed cigarette sticks and 190 litres of liquor in a single raid, with the total value including duties estimated at over RM6.3 million. Separate operations in Sarikei uncovered 6.77 million illegal cigarettes and nearly 90,000 litres of untaxed liquor, involving more than RM6 million in duties and taxes.The Malaysian Maritime Enforcement Agency also intercepted a vessel off Lawas carrying hundreds of cartons of white cigarettes and liquor believed to be untaxed.

These cases demonstrate that illegal supply networks operate across land, port and maritime routes. While TRADA acknowledges the ongoing enforcement efforts by customs, police and maritime authorities, the continued dominance of illegal products in the market suggests that distribution channels remain resilient despite significant enforcement successes.

“When illegal cigarettes remain significantly cheaper and easily accessible, enforcement alone becomes reactive. Supply networks adapt quickly and the illegal market persists.Clearly, we need new strategies that are more dynamic, that address the root of the issue, ensuring long-term solutions rather than just temporary fixes.”

TRADA therefore calls for a comprehensive approach that not only supports enforcement but also tackles the underlying factors driving consumer choices. This includes exploring ways to reduce the attractiveness of illegal products in the market.

“A healthy market is one where products are legal, regulated and fairly priced. Bringing down the illegal cigarette rate is critical to rebuilding trust, protecting communities and ensuring fair competition,” Joseph concluded.

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