The Malaysian Women’s Action for Tobacco Control and Health (MyWATCH) strongly supports the Consumers’ Association of Penang (CAP) in calling for a substantial increase in cigarette taxes in Budget 2027. The time for token increases has passed.
Malaysia signed the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) on September 23, 2003, ratified it on September 16, 2005, and became legally bound as a Party when the Convention entered into force for Malaysia on December 15, 2005.
More than two decades later, we must ask a simple question: are we truly honouring the commitment Malaysia made to protect its people from tobacco and nicotine addiction?
The WHO FCTC is not merely a document that Malaysia signed for international recognition. It represents a commitment to implement evidence-based measures to reduce tobacco consumption, nicotine addiction and exposure to tobacco smoke.
This responsibility rests across government. Tobacco control cannot be regarded as the responsibility of the Ministry of Health (MOH) alone. The Ministry of Finance (MOF), together with other ministries and agencies, has an equally important role.
Tobacco Tax Is Both Health Policy And Sound Economic Policy
At a time when Malaysia faces fiscal pressures and increasing health care expenditure, it is difficult to understand why tobacco taxation is not being used much more aggressively.
The evidence is well established. Substantial tobacco tax increases can achieve several objectives simultaneously:
- Reduce tobacco consumption.
- Discourage children and young people from starting to smoke.
- Encourage existing smokers to quit or reduce consumption.
- Reduce future expenditure on tobacco-related diseases.
- Improve productivity by reducing tobacco-related illness and premature mortality.
- Generate additional government revenue that can support health care and disease prevention.
Young people and lower-income populations are particularly responsive to increases in tobacco prices. Tobacco taxation is therefore not simply a revenue measure. It is one of the most powerful public health interventions available to government.
Malaysia-specific research has similarly demonstrated that increasing cigarette excise tax can reduce consumption and tobacco-related deaths while increasing government revenue.
Why, then, should Malaysia settle for marginal increases?
The two-sen-per-stick increase announced in Budget 2026, after years without a meaningful increase, was far too small to produce the transformative public health impact Malaysia needs.
MyWATCH therefore calls for a substantial, multi-fold increase in tobacco excise taxation, structured so that tobacco products become progressively less affordable, particularly to children and young people.
Malaysia should work towards the WHO benchmark whereby taxes account for at least 75 per cent of the retail price of tobacco products, accompanied by regular adjustments that prevent tobacco from becoming more affordable as incomes and inflation rise.
The argument that substantially increasing tobacco taxes will inevitably fuel illicit trade should not be used as an excuse for inaction.
Illicit trade requires strong enforcement, track-and-trace mechanisms and effective customs action. Weak enforcement should be corrected; it should not dictate public health policy.
Protect Policy From Industry Influence
Malaysia must also remain faithful to the spirit and obligations of the WHO FCTC in protecting public health policy from the commercial and other vested interests of the tobacco industry.
Public health decisions should be based on independent scientific evidence and the welfare of Malaysians, and not on arguments advanced by industries whose commercial survival depends upon continued consumption of addictive products.
It would be deeply troubling if, after committing internationally to tobacco control, Malaysia were to weaken or delay effective measures because of industry pressure.
Our children cannot be collateral damage in protecting commercial interests.
The High Court Has Given Malaysia An Opportunity For Course Correction
The recent High Court decision concerning liquid and gel nicotine should also be regarded as an opportunity for the government to reset Malaysia’s nicotine policy.
On May 15, 2026, the High Court ruled that the 2023 removal of liquid and gel nicotine from the Poisons List was unlawful and irrational, and had been undertaken without proper or adequate consultation with the Poisons Board.
The government subsequently withdrew its appeal against that judge ment on August 18, 2026.
Importantly, the written judgement also referred to Malaysia’s obligations under the WHO FCTC, including the responsibility to prevent and reduce nicotine addiction and protect public health.
MyWATCH therefore reiterates our call for the government to take the logical next step: prohibit the commercial sale of recreational nicotine vaping products in Malaysia.
Nicotine is not an ordinary consumer product. It is highly addictive, and protecting children and adolescents from nicotine dependence must take precedence over commercial interests and tax revenue.
The present uncertainty over the legal status of liquid nicotine following the High Court judgement should not be allowed to persist. MOH and MOF must provide clear policy direction.
Bring Back The Generational End Game (GEG)
Malaysia should also revisit the Generational End Game (GEG). The original vision was courageous: rather than merely managing another generation of smokers and nicotine users, Malaysia would progressively create generations protected from tobacco and nicotine addiction.
Removing the GEG from the eventual legislation should not mean abandoning its underlying public health objective forever.
MyWATCH calls on the government to reintroduce the GEG through an appropriate, legally robust framework, informed by lessons from the earlier legislative process and supported by strong enforcement, cessation services, public education and protection against industry interference.
Budget 2027 Is An Opportunity To Demonstrate Leadership
Budget 2027 gives the government an opportunity to demonstrate that its commitment to public health is more than rhetoric.
MyWATCH therefore calls upon the government of Malaysia, particularly MOF and MOH, to do the following:
- Substantially and repeatedly increase tobacco taxation.
- Move towards the WHO benchmark of taxes representing at least 75 per cent of retail tobacco prices.
- Ensure tax increases outpace inflation and income growth.
- Strengthen enforcement against illicit tobacco.
- Prohibit recreational nicotine vaping products following the High Court ruling.
- Reintroduce the GEG through an appropriate legal framework.
- Rigorously protect tobacco and nicotine policy from industry interference.
Revenue raised from higher tobacco taxes should also be strategically channelled towards strengthening health care, tobacco cessation, health promotion, disease prevention, and programmes protecting children and young people.
Malaysia made its commitment more than two decades ago. We signed the WHO FCTC in 2003. We ratified it in 2005. We became a Party that same year. Those commitments must mean something.
At a time of economic constraint, raising tobacco taxes is one of the rare measures capable of delivering better health, lower future health care costs and greater government revenue at the same time.
Our economists should recognise it. Our policymakers should act upon it. And our government should have the courage to place the health of Malaysians above the commercial interests of industries that profit from addiction.
Our children and future generations must come first.
This press release was issued by MyWatch president Rozlizawati Md Ali.
- This is the personal opinion of the writer or publication and does not necessarily represent the views of CodeBlue.
