Sundry Shops Demand Government Support for Tobacco Display Ban Costs

The Federation of Sundry Goods Merchants Associations of Malaysia (FSGMAM) has raised a significant concern regarding the recently introduced ban on the public display of tobacco and vape products in stores. With the enforcement set to commence by April 1 next year, the federation highlights the pressing issue of financial burden, stating that the ban could potentially cost retailers a total of RM300 million nationwide.

“Our stores must undergo extensive physical modifications to conceal these products from customers, yet no financial assistance or phased rollout has been provided by the government. This approach is blindsiding small businesses,” said Hong Chee Meng, president of FSGMAM, in a recent statement.

The federation outlines that each store might incur an upfront cost of approximately RM6,000 to reconfigure their product shelves to comply with the new regulations. In the current challenging economic climate, this adds to the financial strain already faced by many small businesses across the country.

Hong Chee Meng further expressed concerns that the ban could inadvertently boost the illegal tobacco and vape market. With legal products hidden from view, as per the regulation mandates, the ease of illegal products infiltrating the market could increase, posing further challenges for retailers.

“Retailers are uncertain about how to enforce this ban efficiently, especially considering the potential need for additional staff and possible disruption to customer service,” Hong added.

FSGMAM is appealing for the government to reconsider the timing of the ban’s enforcement and seek collaboration with retailers to develop a framework that prioritizes public health while taking into account the economic impacts on small businesses. “The government cannot impose such a policy without evaluating its broader economic effects, especially on smaller retailers. We urge the Ministry of Health to halt this policy’s implementation until a clear and supportive framework is established,” Hong emphasized.

The regulation falls under the Control of Smoking Products for Public Health Act 2024, popularly known as Act 852, which was initially gazetted in February and began enforcement on October 1 this year. This act not only dictates the ban on tobacco displays but also outlines specific locations where smoking and vaping are prohibited.

As the debate around public health and economic sustainability continues, stakeholders from various sectors hope for a balanced resolution that safeguards both community health and the vitality of local businesses.