Malaysia: Industry Communicates on Illicit Trade

In Malaysia, British American Tobacco (BAT) has launched a communication operation on the theme of illicit trade[1]These practices are contrary to the country's international commitments in terms of public health.

The tobacco giant launched a bus in early October aimed at drawing public attention to the black market. According to British American Tobacco, the economic losses amount to 300 billion ringgit, and correspond to a tax loss of 1.08 billion euros (5.3 billion ringgit). However, the figures given here should be taken with a grain of salt, given the industry's recurring strategy of superficially amplifying the phenomenon.[2].

Illicit trade and the tobacco industry: historical links

Yet the tobacco industry itself has been repeatedly shown to be involved in the illicit cigarette trade, and has even been condemned for these practices. In particular, British American Tobacco itself has been singled out for organizing and facilitating the illicit tobacco trade throughout Africa, including in conflict zones.[3]. The tobacco industry, however, regularly exploits the phenomenon of smuggling, particularly to denounce tax levels. One of the main arguments is to assert that tax increases economically support criminal networks. These allegations and practices are not recent: in the 1990s, the tobacco industry successfully exploited a sudden increase in illicit trade to obtain a reduction in taxation on its products. It was later shown that this smuggling had been organized by the industry itself.[4].

Industry communication contrary to the country's commitments

This communication operation, considered to be indirect advertising for tobacco, is contrary to Malaysia's commitments. Indeed, the country, a Party to the World Health Organization Framework Convention on Tobacco Control (FCTC), is required to prohibit all forms of advertising, direct or indirect, for tobacco. British American Tobacco, finally presenting illicit trade as a " hindrance to economic growth ", opposes the guiding principles of this treaty, which recalls that the interests of this industry and those of public health are irreconcilable and recommends not to approach the industry as a lever for economic development. Indeed, the cost of the tobacco sector is far higher than the revenue it generates and tobacco represents a key factor in impoverishment and precariousness.

Keywords: Illicit trade, Malaysia, BAT ©Generation Without Tobacco

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[1] BAT Malaysia launches 'Stop the Black Market' bus, The Edge markets, 03/10/2020 (accessed 12/10/2020) [2] Evans-Reeves K, Hatchard J, Rowell A, et al Illicit tobacco trade is 'booming': UK newspaper coverage of data funded by transnational tobacco companies Tobacco Control Published Online First: 16 April 2020. doi: 10.1136/tobaccocontrol-2018-054902 http://dx.doi.org/10.1136/tobaccocontrol-2018-054902 [3] Illicit Trade: The Tobacco Industry's Three-Cushion Game, National Committee Against Smoking, 08/10/2020, consulted on 12/10/2020 [4] Gilmore AB, Gallagher AWA, Rowell A Tobacco industry's elaborate attempts to control a global track and trace system and fundamentally undermine the Illicit Trade Protocol Tobacco Control 2019;28:127-140. http://dx.doi.org/10.1136/tobaccocontrol-2017-054191 National Committee Against Smoking |