Customs seizes over 10 mln illicit cigarettes as pricing gaps, demand drive trade in S’wak

By Amanda L

KUCHING, Apr 25: The Royal Malaysian Customs Department (RMCD) Sarawak has seized 10,193,193 sticks of illicit cigarettes so far this year, involving an estimated RM7.3 million in duties and taxes.

Deputy Director of RMCD Sarawak Abg Zamari Abg Nazarin said the cumulative total of cigarettes seized from 2024 to date stands at 129,817,968 sticks, with duties and taxes amounting to approximately RM96 million.

He said the figures reflect ongoing enforcement efforts that have helped curb cigarette smuggling activities in the state, although the issue remains persistent.

The matter was highlighted during the Sarawak’s Illicit Trade: Drivers, Risks & the Cost of Prohibition programme organised by DayakDaily and held at a hotel in Kuching today.

“Price disparities between legal and illicit products, sustained consumer demand, and Sarawak’s geographical constraints continue to drive the illicit tobacco trade.

“The trade operates through a multi-layered system involving overseas production, cross-border smuggling networks and local retail distribution,” he said.

He added that smuggling activities originate from neighbouring countries and enter Sarawak through multiple routes, including land and maritime channels, rather than solely through official entry points.

Abg Zamari said traffickers employ various concealment methods, including disguising illicit cigarettes within other goods to evade detection.

He said key factors sustaining the trade include high excise duties that create significant price gaps, continued demand and the state’s extensive coastline and borders with Kalimantan and Brunei, which complicate monitoring efforts.

He noted that enforcement agencies continue to conduct operations targeting smuggling syndicates, including seizures and prosecutions related to duty evasion, despite increasingly adaptive tactics used by traffickers.

E-cigarettes were also identified as an emerging concern, with distribution increasingly taking place through online platforms, courier services and informal retail channels.

“Unregulated vape products, coupled with growing demand among younger users, present both enforcement and public health risks.

“Enforcement is carried out under the Customs Act 1967 and the Excise Act 1976, which provide penalties for offences involving smuggling and handling of duty-unpaid goods,” he said.

He added that enforcement strategies are increasingly intelligence-led, supported by data analytics, tracking systems and cross-border cooperation with regional counterparts.

Multiple agencies, including the Royal Malaysia Police (PDRM), Malaysian Maritime Enforcement Agency (MMEA), Ministry of Health (MOH) and Malaysian Anti-Corruption Commission (MACC) are also involved in coordinated efforts to curb illicit trade.

While enforcement outcomes remain positive, Abg Zamari noted that challenges persist, including evolving smuggling methods and operational constraints, adding that the illicit vape market could expand further if not effectively contained. — DayakDaily

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