THE combo of political uncertainties and economic issues stemming from the COVID-19 pandemic have hugely benefitted organised crime, especially those involved in illicit trade and smuggling activities.
The above observation by the Retail and Trade Brands Advocacy Malaysia Chapter (RTBA Malaysia) came on the back of the current political turmoil, increasing unemployment rates and decreasing household income levels.
Citing a report by the United Nations Office on drug and crime entitled Crime and Instability, RTBA Malaysia’s managing director Datuk Fazli Nordin said studies have shown a clear correlation between political instability and increased activities perpetrated by organised crime.
“Naturally, criminals benefit when governments take their eyes off security and enforcement issues while at the same time neglecting economic challenges,” he pointed out.
“Malaysia’s political unrest has not reached a critical stage yet but nevertheless we are already seeing an uptick in illicit trafficking activities in recent months, especially in the smuggling of illegal cigarettes.”
According to Fazli, organised criminal syndicates are bringing in massive amounts of illegal cigarettes from other countries, including Indonesia and Vietnam, via large cargo vessels, stopping just short of the Malaysian borders.
“A smart operation involving foreigners and local cohorts will then bring these cigarettes in through our porous coastlines to be distributed throughout Malaysia,” observed the head of the advocacy group that protects businesses in the Asia-Pacific region.
The most worrying element of this entire black market operation is the revelation of crime bosses or Mafia-like Dons who sit at the top of the criminal organisation chart controlling all aspects of this multi-billion illegal business.
“Although our law enforcement agencies are well aware of who exactly these Dons are, could it be that action cannot be taken because our leaders and policymakers are constantly distracted playing Game of Thrones?” asked Fazli.
Allowing smuggling Dons to operate will undermine the rule of law and establish a vicious cycle that could lead to a de facto failed state, according to Fazli.
“Organised criminal syndicates welcome political instability and will be more than willing to facilitate a dysfunctional government through corruption,” he suggested.
“Moreover, stretched incomes and high unemployment rates will also mean that more consumers are turning to smuggled products that are untaxed and unregulated.”
In this regard, Fazli said it has become more important than ever for all leaders and policymakers to come together to cohesively push through bold and tangible policies that drive economic recovery and prevent unnecessary leakages.
Political will goes a long way towards meaningful progress,” he insisted. “We have seen clever policies put in place under Budget 2021 that have an impact on the illegal cigarettes trade in the early stages.”
As organised crime is now making a comeback, the Government must be decisive in maintaining the excise moratorium as well as to address the price gap between legal and illegal cigarettes to make it unprofitable for criminals, according to Fazli.
“Simultaneously, we also have to empower our enforcement agencies with all the tools and policies they require to go after the smuggling Dons effectively,” he added. – Aug 6, 2021
