In a bid to curb smoking and protect public health, Malaysia has rolled out a new regulation under the Control of Smoking Products for Public Health Act 2024, banning the open display of cigarettes and other smoking products at retail counters. Effective from April 1, 2025, the rule has prompted a mixed response from retailers and coffee shop owners across the country, many of whom are grappling with compliance while worrying about the impact on their already slim profit margins.
A Shift to Covered Cabinets
The Health Ministry’s directive, which affects around 51,000 retailers nationwide, mandates that smoking products be stored in enclosed cabinets or covered to prevent open display. This measure, part of Regulation 6 under the Act, aims to reduce the visibility of cigarettes, particularly to younger customers, as part of a broader public health strategy. The ministry has emphasized that proper enclosed cabinets are the preferred method over temporary solutions like cloth or canvas coverings, with phased enforcement planned through October 1, 2025. 
Retailers have responded with varying degrees of readiness. Hong Chee Meng, president of the Federation of Sundry Goods Merchants Associations of Malaysia, confirmed that many grocery store members have already complied by either removing cigarettes from shelves or covering display cabinets. However, he urged enforcement officers to focus on education rather than immediate fines during inspections. “After all, we are licensed sellers” he said, highlighting the need for guidance over punitive measures in the early stages of implementation.
Profit Margins and Customer Perceptions
For many small businesses, cigarettes are a low-margin product, often yielding just a 7% profit per pack, according to Hong. The new display ban has sparked concerns that customers might mistakenly assume legal stores no longer sell smoking products, potentially driving sales underground. “Not displaying cigarettes might give customers the impression that we no longer sell them” Hong noted, warning that this could push smokers toward the illegal market for contraband cigarettes—a problem he believes the government should prioritize over stringent enforcement on licensed retailers.
Individual shop owners echo these concerns. Tan Teck Hock, president of the Klang Coast Provision and Sundry Goods Retailers, mentioned that he had removed all cigarettes from display but faced confusion from customers who assumed he had stopped selling them. “I had to explain to them” he said, pointing to a lack of clear communication about how to implement the new rules. Similarly, kopitiam owner Arjun Sharma, 45, reported storing cigarettes in a cabinet and only retrieving them upon request, yet many customers still believed he no longer stocked them.
Supplier Support and Regional Variations
Compliance challenges are compounded by a lack of immediate support from tobacco suppliers, particularly for smaller businesses reliant on provided display counters. In Penang, checks revealed that many coffee shop owners are awaiting guidance from their suppliers. A 55-year-old owner, identified only as Chen, explained that her counter and cabinet were supplied by the cigarette company. “Up to the end of March, we received no word about what to do from our suppliers” she said, reflecting a broader uncertainty among retailers in the region.
Meanwhile, sundry shop owner Bryan Chuah, 24, expressed hope that suppliers would assist with necessary modifications, such as replacing glass panels on display cabinets to meet the new standards. “We have been briefed by the Health Department and suppliers of the rules, but there are no solid guidelines” he said, suggesting that both authorities and suppliers have room to refine their approach as businesses adapt.
Public Health Goals Versus Economic Realities
The Health Ministry’s initiative aligns with global trends aimed at reducing smoking rates through visibility restrictions, a strategy already implemented in countries like Australia and the United Kingdom. By limiting exposure to cigarette branding at points of sale, the policy seeks to deter impulse purchases and normalize a cultural shift away from smoking, especially among impressionable demographics. The ministry has committed to working with retailers through October to ensure compliance, signaling a collaborative rather than confrontational approach—at least for now.
Yet, the economic implications for small retailers cannot be ignored. Malaysia’s retail sector, particularly sundry shops and coffee houses, often operates on razor-thin margins, with cigarettes serving as a steady, if modest, revenue stream. The potential shift to contraband sales, as highlighted by industry leaders like Hong, poses a dual threat: not only could it undermine public health goals by fueling an unregulated market, but it could also erode the livelihoods of licensed sellers already struggling to adapt.
Broader Implications for Malaysia’s Smoking Landscape
Beyond immediate compliance issues, the display ban raises questions about the future of tobacco regulation in Malaysia. The country has a significant smoking population, with the National Health and Morbidity Survey 2019 estimating that around 21.3% of adults smoke. While initiatives like the display ban aim to chip away at these numbers, they must be paired with robust measures to tackle the illicit cigarette trade, which reportedly accounts for a substantial portion of the market. Industry estimates suggest that contraband products, often smuggled across borders, make up as much as 60% of cigarettes consumed in Malaysia, a figure that could grow if legal access becomes less visible.
The government’s focus on contraband, as urged by retailer associations, may also require international cooperation, given the cross-border nature of smuggling networks. Neighboring countries like Thailand and Indonesia face similar challenges, and regional efforts could prove more effective than domestic crackdowns alone. For now, though, retailers are left navigating a regulatory landscape that feels incomplete, with calls for clearer guidelines and supplier support growing louder.
Balancing Health and Business Needs
As Malaysia’s cigarette display ban unfolds, the tension between public health objectives and economic realities remains palpable. Retailers are caught in a delicate balancing act—complying with new rules while striving to maintain customer trust and profitability. The Health Ministry’s phased enforcement offers a window for adjustment, but without targeted support for small businesses and a parallel focus on curbing illegal sales, the policy risks unintended consequences.
For shop owners like Chen and Sharma, the coming months will test their resilience as they await further clarity. Meanwhile, customers may need time to adjust to a retail environment where cigarettes are out of sight, if not out of mind. As the nation watches this policy take shape, one question looms large: can Malaysia strike a balance that protects public health without leaving its small businesses behind?
