ASEAN could lose $11 billion to illicit tobacco trade
A policy brief from the international organization CME warns that Southeast Asian governments could lose more than $11 billion by 2028 due to illicit tobacco trade, an average annual loss of $3.7 billion. Key country losses include: Malaysia: $770 million
A policy brief from CME warns that Southeast Asian governments could lose more than US$11 billion from the illicit tobacco trade by 2028, or an average of US$3.7 billion a year.
Key country losses include:
Malaysia: US$770 million a year, nearly equal to the expected savings from gasoline subsidies.
Philippines: US$440 million a year, more than its US$370 million disaster preparedness fund.
Thailand: US$560 million in annual sales, with illegal products accounting for 28% of the market.
Indonesia: US$5 billion in losses over three years, with illicit trade making up more than 10% of the market.
CME said these figures are conservative because of underreporting and weak enforcement. CEO Dr. Carmelo Falletto called for stronger cross-border cooperation, policy coordination, and greater transparency to recover lost revenue. Crime Stoppers International CEO Hayley Van Loon highlighted the link between illicit tobacco and organized crime, including drugs, human trafficking, and counterfeit goods.
