KUALA LUMPUR (Oct 7): The retail display ban on tobacco, set to be implemented by April 1 next year, could cost retailers up to RM300 million in compliance, according to the sundry association.
The new tobacco and vape regulation, as announced by the Ministry of Health (MOH), falls under the Control of Smoking Products for Public Health (Control of Sale) Regulations 2024, which were gazetted and came into effect on Oct 1.
The Federation of Sundry Goods Merchants Associations of Malaysia (FSGMAM) described the new measure as "rushed and drastic", expressing dissatisfaction with the government's lack of consultation with retailers and the short time frame for compliance.
“Each store will have to invest significant resources to modify their premises in order to conceal these products from customers. Yet, the government has not provided financial assistance or a phased rollout. This is blindsiding small businesses,” said FSGMAM president Hong Chee Meng in a statement on Monday.
According to Hong, estimates suggest each retailer could incur up to RM6,000 in costs to comply with the display ban, which could lead to a total of nearly RM300 million in implementation costs nationwide. This poses a significant financial burden, especially on small, family-run businesses.
The policy could also complicate business operations, as retailers are unclear on how to implement the ban and worry they may need additional staff to manage concealed products, potentially disrupting customer service, Hong added.
The association also raised concerns that the display ban might encourage the sale of illegal cigarettes and vape products, as legitimate items would be hidden from view.
Hong is calling on the MOH to delay the retail display ban until proper guidelines and financial support mechanisms are introduced.
"The FSGMAM urges the government to work closely with retailers to develop a balanced and pragmatic approach that achieves public health goals without negatively impacting the retail sector," he noted.