ILLICIT
Illicit beer comprises contraband, counterfeit and unregulated beer often coming from questionable origins.
Total Market Volume (3 Million Hectolitres)
= Legal Market Volume (2 Million Hectolitres)
= Estimated Illicit Market
*Source : The Socio-Economic Impact of CMBB in Malaysia by Steward Redqueen (December 2018)
LOSSES & IMPACT
The illicit beer market negatively impacts the government industry and consumers
Loss of Government Tax Revenue
Threats to Job Supported by the Industry
Potential Public Health Risk
PREVALENCE
*Source : Estimated based on industry survey from June 2018
In Malaysia, illicit beers are flooding the market at an alarming rate. The annual consumption of illicit beer is more than 1 mil Hls, which is a threat to the economy, consumer and local brewers.
RM 1.5 billion estimated annual loss to Government revenue
FACTORS CONTRIBUTING TO ILLICIT
- Second highest excise duty on beer globally
- Poor consumer sentiment coupled with rising costs of living make illicit beer more enticing
- Increased demand from migrant workers
- Enforcement Challenges
CHARACTERISTICS OF ILLICIT
- Abnormally low prices due to tax evasion
- Dubious tax stamp or absence of tax stamp
- Source/origin NOT indicated
- Importer/distributor NOT indicated
- Alcohol content between 10-18%
STRATEGIES TO TACKLE ILLICIT
01
GOVERNMENT ENGAGEMENT
02
AWARENESS CAMPAIGNS
03
KNOWLEDGE TRANSFER
04
FORUMS AND SEMINARS