Industry reacts to Malaysian duty-free tobacco ban proposal - UPDATE

Gavin Lipsith

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Industry campaigners suggest the threat could be "very serious" while Dimensi Eksklusif tells RavenFox.com the proposal could be "a long way down the line"

The Malaysian health ministry will aim to implement a ban on duty-free tobacco sales, according to reports on the Malaysia Star's website. The article quoted health ministry disease control division deputy director Dr Abdul Rasid Kasri as saying that the move was part of the government's attempts to eliminate sources of cheap tobacco in the country, and would apply to international airports and duty-free zones in the country, including Langkawi, Bukit Kayu Hitam and Tioman.

Rasid said his division would soon submit his recommendations to the government to abolish all sales of tax-free and duty-free tobacco products, which are about 40% cheaper than those sold domestically. He said the ministry would work with the Customs department to clarify details and that, although he would not compromise on the goal, the timeframe is flexible.

European Travel Retail Council secretary general Keith Spinks told RavenFox.com that the move was not surprising as the West Pacific region had always been a danger area, and that during the World Health Organization's process on its Framework Convention on Tobacco Control the region had been one of the strongest supporters of a ban. He reported that initial intelligence suggested the threat was "very serious".

He said: "Our understanding from local contacts is that, given the way the government operates in Malaysia, such a statement would not be made without tacit consensus, or even total support, from the government."

Dimensi Eksklusif sells cigars and other duty-free products at Kuala Lumpur International airport, and managing director Zainul Azman told RavenFox.com that the news had probably been leaked to the Star by a health ministry official and that it could be ?a long way down the line?. He reported that the article said measures were suggested primarily to curb youth smoking, but added that a blanket ban would be unfair on airport operators. He suggested that problems at the country's border stores and outlets in free zones such as Langkawi island, which are less tightly regulated than airport stores, had fuelled calls for a ban.