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ILLICIT

Illicit beer comprises contraband, counterfeit and unregulated beer often coming from questionable origins.

Responsible Purchasing

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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