Sundry shops face burnout with RM300mil needed to implement display ban on tobacco products

KUALA LUMPUR: It could cost nearly RM300mil to implement a display ban on all tobacco and vape products in retail outlets, say sundry shop owners.

The display ban on these products which is required under the Control of Smoking Products for Public Health Act 2024, will take effect by April 1 next year.

"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," said Federation of Sundry Goods Merchants Associations of Malaysia president Hong Chee Meng, adding that "this is blindsiding small businesses."

He said there would be substantial upfront costs to reconfigure their product shelves in stores, adding that sundry shops are already facing a difficult situation in the current economic climate.

"Estimates indicate that each retailer could incur up to RM6,000 in costs to comply with the display ban, putting an enormous financial strain on small, family-run businesses. This could amount to nearly RM300mil in implementation costs nationwide by April 1, 2025," he said in a statement on Monday (Oct 7)

The government’s decision to ban the display of tobacco and products is too rushed and drastic, claimed Hong.

"Tens of thousands of small retailers are expected to comply with this requirement by April 1. There is no consideration given to small retailers who would face challenges," he claimed.

While the Control of Smoking Products for Public Health Act 2024 (Act 852) went into effect on Oct 1, the Health Ministry announced that some measures under the legislation were to be enforced immediately while others were in phases.

The display ban on products will be implemented the latest by April 1 next year.

Hong said the association is also deeply concerned that the display ban will encourage the rise of illegal cigarettes and vape products as legitimate products will be hidden from view.

He said beyond the financial burden, the lack of clear instructions has left retailers unsure about how to operationalise this ban.

"Many have raised concerns about the need for additional staff to manage concealed products and the potential disruption to customer service.

“Retailers deserve to know how to comply, and we deserve time and support to implement these changes," he said, adding that the group is calling for a delay in the enforcement.