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Tag: illict

  • Malaysia: With Rising Illicits and Looming Ban, Vape Sellers Told to Switch Businesses

    Malaysia: With Rising Illicits and Looming Ban, Vape Sellers Told to Switch Businesses

    Vape sellers in Sarawak, Malaysia, have been told to shift into other lines of business as the state government moves toward a full ban on the sale and use of electronic cigarettes. Deputy Minister for Youth, Sports and Entrepreneur Development Ripin Lamat said businesses should “gradually transform and venture into more promising industries” such as food and beverage or agribusiness, warning that vape products “will destroy our young generation and ultimately undermine the values of future generations.”

    The Sarawak government is preparing legislation to formalize the ban, including a Cabinet paper that is currently under review with input from the state attorney general, secretary, and financial officer. The move follows earlier remarks from state officials linking vape use to drug abuse risks, and aligns Sarawak with several other Malaysian states.

    Similar bans have led to rising black market trade in other markets, and business officials worry the results will be similar in Malaysia, where illicit products are already becoming a problem. A Nielsen survey from May found that 55% of cigarettes sold in Malaysia are illicit, mostly smuggled from Vietnam, China, and Indonesia via ship-to-ship transfers along the east coast, costing the government RM2 billion ($480 million) in lost tax revenue each year.

    Customs has stepped up enforcement with AI scanners, body cameras, and tighter port controls, raising revenue collection by 19% in 2024. However, syndicates remain entrenched, aided by corruption and weak penalties, and officials warn that without stronger naval patrols, tougher laws, and better resources, the black market will continue draining state funds.

  • Meeting Held to Tackle Illicit Cigarettes in Western Balkans

    Meeting Held to Tackle Illicit Cigarettes in Western Balkans

    A high-level meeting to discuss measures to combat the illicit trade of tobacco products in the Western Balkans was held in Montenegro this week, where multiple institutional representatives highlighted the severity of the problem that negatively impacts public health, public finances, and regional security. The meeting was hosted by the Ministry of Finance of Montenegro in cooperation with the Secretariat of the WHO Framework Convention on Tobacco Control (the Convention Secretariat), and the WHO Regional Office for Europe.

    Novica Vuković, the Minister of Finance of Montenegro, said coordination among Balkan countries is key to effectively resolving the issue and called for strengthening joint action and information exchange between states. He stressed that eliminating the illicit tobacco trade is not an option but a priority. “Illicit tobacco trade is a global problem, and its impact particularly affects the countries of the Western Balkans,” he said. “Although the situation is serious, I believe that through joint efforts, we will be able to take concrete measures to reduce this harmful practice.”

    The Prime Minister of Montenegro, Milojko Spajić, emphasized that customs officers had seized millions of dollars of illegal cigarettes, preventing their further smuggling. He added that recent actions by the Special State Prosecutor’s Office and the Special Police Department had resulted in the arrest of numerous members of organized crime groups.

    The Ambassador of the EU to Montenegro, Johann Sattler, said, “There is an urgent need for a strong and coordinated approach to tackling illicit tobacco trade, which will improve public health, protect state revenues, and enhance the fight against organized crime. The EU remains committed to supporting Montenegro in this effort. I urge Montenegrin institutions to seize this opportunity, take decisive steps, and demonstrate their commitment to upholding the rule of law, including the destruction of illegal tobacco products seized in 2022.”