Smokes smugglers change tack to bypass new restrictions

KUALA LUMPUR – Smuggling syndicates are changing the way they operate as a reaction to the enhanced enforcement measures put in place under Budget 2021 to counter the illegal cigarettes trade, said Retail and Trade Brands Advocacy Malaysia Chapter (RTBA).

Managing director Datuk Fazli Nordin said large ports in Malaysia used to be the primary route for the illegal cigarettes trade, but with new restrictions in place, these criminals are now utilising small private jetties and unofficial landing spots throughout the country’s coast to bring in their illegal and untaxed products.

“The authorities have reported that they have seized a total of approximately 76.2 million sticks of illegal cigarettes that came through the coastal route in the first quarter of 2021 alone.

“Clearly, the massive uptick in coastal illegal trafficking shows that these criminals are changing their modus operandi and are putting in place a new logistics eco-system that takes advantage of Malaysia’s long coastline.

In view of this development, Fazli believes that any progress made by the enhanced enforcement measures in Budget 2021 to tackle the illegal cigarettes trade will be short-lived once these criminal syndicates solidify their new system.

“It is basically a factor of supply and demand. Demand for cheap illegal cigarettes will continue to be high as legal cigarettes are very expensive. Criminal syndicates will naturally take advantage of this high demand and do whatever it takes to make huge profits at the expense of our government’s revenue and national economy,” he added. 

He said RTBA recommends that the government strive to strengthen its efforts to curb the illegal cigarettes trade.

“More resources and attention needs to be focused on securing our coastline. Just like these criminal syndicates, our enforcement agencies must also look into embracing new technologies and deploying innovative methods to be one step ahead of them.

“Just as important are policies to address the wide price gap between legal and illegal cigarettes, which must be considered and put in place. The upcoming Budget 2022 must include clever reforms that address the demand factor so that these criminal syndicates will find illegal cigarette trafficking to be an unprofitable venture,” he said. – Bernama, May 21, 2021