Defeating underground economy: A must-win battle
Akhbar Satar | 04 Jan 2019 00:30
The term “underground economy,” also known as “shadow economy” or “black market,” refers to business transactions and economic activities conducted illegally outside the visibility of the legal and open marketplace.
These illegal activities are conducted thus to avoid the law and also the rules and regulations governing certain types of transactions, hidden from the authorities and law enforcement and, of course, to avoid the tax authorities.
Being below the legal radar, such hidden activities facilitate the illegal exchange and payment of goods and services including smuggling of weapons, tobacco, drugs, prostitution, illegal gambling dens and online gaming activities, counterfeit passports and human trafficking.
The underground economy has a significant impact on the economy of a country.
In 2015, then home minister Datuk Seri Hishammuddin Tun Hussein said the “shadow economy” in Malaysia has grown to RM10 bil a year, requiring the government to initiate tougher measures against such elements as they may threaten national security.
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