KUALA LUMPUR, Sept. 16 -- Malaysia is estimated to be losing around US$775 million (RM3.2 billion) in tax revenue annually to illicit tobacco, with illegal products accounting for more than half of the market, according to a new regional study.

In a media release, The Center for Market Education (CME) estimated Malaysia's illicit tobacco market share at 55 per cent, making it one of the most severe cases among 14 Asia-Pacific economies examined in its latest policy paper.

Pakistan recorded a similarly high illicit share of 54 per cent, while Australia was estimated at 60 per cent.

According to CME, the estimated revenue lost to illicit tobacco in both Malaysia and Pakistan now exceeds the amount governments collect from tobacco taxatio...