Citing RM300m costs nationwide, sundry shops says govt should help pay if want tobacco display banned

KUALA LUMPUR, Oct 7 – The Federation of Sundry Goods Merchants Associations of Malaysia (FSGMAM) has today raised concerns over the recently gazetted ban against the display of tobacco and vape products in its stores.

FSGMAM said the display ban, set to take effect by April 1 next year, was introduced hastily and with no financial assistance from the government despite potentially costing RM300 million for a nationwide implementation.

“Each store will have to invest significant resources into making physical modifications to hide these products from customers, but the government has not offered financial assistance or a phased rollout. This is blindsiding small businesses.

“We are talking about substantial upfront costs to reconfigure our product shelves in stores, and we are already facing a difficult situation in the current economic climate,” its president Hong Chee Meng said in a statement here.

The group said retailers could be expected to fork out RM6,000 per store, with a total nationwide impact nearing RM300 million.

FSGMAM is also worried that the ban could fuel the illegal tobacco and vape market, saying since legal products are hidden from view, it would be easier for illegal goods to proliferate.

It said retailers are also grappling with uncertainty over how to enforce the ban, with many raising concerns about the potential need for additional staff and the disruption to customer service.

FSGMAM is urging the government to delay the ban's enforcement and work with retailers to create a clearer framework that balances public health concerns with the economic realities faced by small businesses.

“The Government cannot impose a policy without considering its broader economic impact especially to the smaller retailers.

“We urge the Ministry of Health to halt this policy’s implementation until a clear, supportive framework is in place,” Hong said.

The Control of Smoking Products for Public Health Act 2024, also known as Act 852, was gazetted back in February, but enforcement finally kicked off on October 1 this year.

Among others, it stipulates places where smoking and vaping are prohibited, and a ban on public display of tobacco products.

Recommended read:

Act 852 on smoking products is now in effect: Here’s what to know, whether you are a smoker/vaper or not

Where you cannot smoke in Malaysia since Oct 1, and where you can (at the airport): A detailed list