Yusoff Welcomes Budget Push Against Illicit Cigarette Trade

Retail Outlets Must Be the Focus Against Illicit Trade

KUALA LUMPUR, 19 October 2026 – Former Sarawak State Police Chief Datuk Dr Yusoff Nook has praised the Government for strengthening enforcement under Budget 2027. He said the extra resources come at the right time to tackle illicit trade, especially illicit cigarettes, which remain widely available at retail outlets nationwide.

Budget 2027 allocates RM1.1 billion to strengthen the operations of enforcement agencies, including PDRM, JKDM, KPDN, MACC and MyCC. Funding for the Malaysia Border Control and Protection Agency (AKPS) rose to RM490 million, from RM37 million this year.

“I served in enforcement for many years, and I can tell you operations depend on resources: officers on the ground, vehicles, intelligence and the ability to return to the same premises again and again. This allocation gives our agencies exactly that. The government must be credited for putting enforcement at the heart of Budget 2027,” said Datuk Dr Yusoff.

He said the allocation builds on the Prime Minister’s directive in October for a coordinated, nationwide crackdown on illegal foreign-run businesses. That directive brought together the police, Customs, KPDN, local councils and Immigration. He also welcomed the Customs Director-General’s statement that JKDM is stepping up action against foreign-operated business premises.

The Prime Minister has also said that enforcement agencies would tighten controls and would not hesitate to revoke the business licences of local owners found renting out their premises to foreign nationals. Datuk Dr Yusoff said this was an important step towards holding business owners accountable for allowing their premises to be used for illegal activities.

Illicit Cigarette

In Sarawak, police have similarly indicated that they may seek licence revocation through local authorities if investigations substantiate claims two convenience stores targeted in Kuching arson attacks in September were selling online gambling top-ups. Datuk Dr Yusoff said the case underscores the importance of enforcing business licensing rules and taking firm action when illegal activities are established.

Enforcement must also address the widespread availability of illicit cigarettes at retail outlets nationwide. “Illicit cigarettes are not hidden. They are sold openly at sundry shops, often by foreign workers, and buyers know exactly where to find them. Stronger enforcement at these outlets can make a visible difference,” said Datuk Dr Yusoff.

NielsenIQ’s Illicit Cigarettes Study (May 2026) found that 56.2% of cigarettes consumed in Malaysia are illicit. A Wawasanex survey of 603 Malaysians, also in May 2026, found that 99% of buyers said illicit cigarettes were easy or very easy to obtain, and 73% named migrant workers as the main sellers.

“With these resources in place, I hope to see more frequent inspections of outlets, follow-up checks on premises that have already been raided, and close coordination between Customs, KPDN, Police and local councils on business licences. Outlets that keep selling illicit cigarettes, including those fronted by foreign workers, should face firm action,” he said.

“Budget 2027 has given our enforcers the tools. Used well at retail level, they can make illicit cigarettes harder to find, and that is the result Malaysians want to see,” he added.

#businessnews