14/05/2026

THURSDAY | MAY 14, 2026

5 New digital marking system to stem illicit tobacco trade

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

KUALA LUMPUR: In a major crackdown on illicit tobacco trade, Malaysia will fully enforce a new digital cigarette marking system next year as authorities move to replace physical tax stamps with a track-and trace mechanism aimed at tightening control over the legal supply chain. The move comes amid mounting concerns over rampant cigarette smuggling and counterfeit tax stamps, which continue to cost the country billions of ringgit in lost revenue annually. Customs Import, Export and Border Control Branch division deputy director Muhammad Nazim Dzul Fakar said the system’s implementation began in April, with the current physical tax stamp mechanism to remain in use until Dec 31 during the transition period. “Full enforcement will begin next year. We are moving from the normal tax stamp attached to cigarette boxes to digital marking,” he said after a forum on “Illicit Cigarettes in Malaysia: Policy, Enforcement and Multi-Agency Solutions” yesterday. “Digital marking will be applied at the production site. Through the track-and-trace system, we will be able to monitor movement from factories to distributors, then to Conservation experts warned that virtually no species is spared, with traffickers targeting everything from Malayan tigers and primates to exotic tortoises smuggled in from overseas to feed an expanding illegal wildlife market. Traffic Southeast Asia director Kanitha Krishnasamy said Malaysia remains both a source and transit hub for trafficked wildlife, with syndicates operating across borders and adapting quickly to shifting consumer demand. “We have native species such as our tigers being poached, also birds, turtles and primates such as gibbons and siamangs.” She was speaking after the Wildlife Illegal Poaching and Trade session of a forum held here yesterday. She said traffickers were also bringing non-native endangered species into Malaysia, including critically endangered tortoises from Madagascar and Indian star tortoises from South Asia. Kanitha said enforcement agencies were making arrests and carrying out prosecutions but investigations often failed to reach the syndicate leaders directing the operations. “Unfortunately, it is not just one or two individuals who are part of the network. Arrests are taking place and prosecutions are taking place but very often, we do not actually find the masterminds. Investigations to nab the masterminds are what is needed.” She said airport smuggling through luggage remains widespread because traffickers prioritise speed in transporting live animals to buyers.

o Move comes amid concerns over cigarette smuggling and counterfeit tax stamps, which cost nation billions in lost revenue annually

If Customs officers do not inspect them carefully, the shipments may slip through.” Nazim said Customs relied on profiling, intelligence gathering, public tip-offs and red flags such as first-time importers, suspicious company profiles and forwarding agents with prior records. He cited a previous Malaysian Maritime Enforcement Agency case involving a smuggling boat fitted with five high-powered engines that enabled syndicates to move swiftly through the Straits of Malacca at night before disappearing into mangrove areas. “The boat itself is already valuable. One engine can cost between RM10,000 and RM20,000, and if they instal five engines, that is already a huge investment. But they are still willing to abandon the boat because the value of the goods being smuggled is far higher.” New MACC chief takes charge PETALING JAYA: Datuk Seri Abd Halim Aman officially reported for duty yesterday as the new Malaysian Anti-Corruption Commission (MACC) chief commissioner, marking the start of his two-year tenure. He replaced former chief commissioner Tan Sri Azam Baki. His appointment letter was issued by Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar on April 25. The appointment was made with the consent of His Majesty the Yang di-Pertuan Agong in accordance with Subsection 5(1) of the Malaysian Anti Corruption Commission Act 2009 [Act 694]. Abd Halim’s contract runs from May 13, 2026 until May 12, 2028. In a brief statement, the MACC extended congratulations to its new chief, expressing confidence in his leadership to further strengthen integrity, governance and the national anti-corruption agenda. Abdul Halim has close to two decades of experience on the bench and a long career in the Judicial and Legal Service. According to the Malaysia Judiciary Yearbook 2023, he began his career in the Judicial and Legal Service in 1982 and served in various capacities for over 22 years. His early roles were as federal counsel at the Attorney-General’s Chambers, magistrate in Kluang and Muar and as senior assistant registrar at the Malacca High Court. He also served as a Sessions Court judge in several locations and later held senior legal positions. He was elevated as High Court judge in 2007 and subsequently served at the Penang High Court (2009) and Johor Bahru High Court (2010), before spending a lengthy tenure at the Shah Alam High Court from 2013 until his mandatory retirement in March 2023. Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com

affairs Mohamad Selamat Tan said digital tax markings would strengthen enforcement by enabling authorities to trace cigarette stock movement throughout the legal supply chain, from manufacturing, importation to local distribution. Nazim said smuggling syndicates continued to exploit legal import channels through false declarations, including disguising cigarettes as tissue products, fabric and other goods with similar weight profiles. He said smugglers also attempted to evade container scans by lining containers with materials such as bricks while concealing cigarettes in the centre. “We have also uncovered export furniture with cigarettes hidden inside. When the furniture was pulled apart, cigarettes came out almost like a machine. “The more professional method is to make declarations appear normal.

jointly overseen by Customs and the Finance Ministry. On May 1, theSun had reported that illicit cigarettes accounted for 56.7% of total cigarette consumption in January resulting in an estimated RM4 billion in lost government revenue, according to Japan Tobacco International (JTI) Malaysia. The company also revealed that counterfeit tax stamps nearly doubled from 8.7% in 2023 to 16% in January, with syndicates increasingly investing in fake tax stamps and sophisticated cross-border supply chains. JTI Malaysia head of external

retailers and finally consumers.” Nazim added that the technology was sourced from Switzerland. He said consumers would also be able to verify cigarette products through a dedicated app expected to be introduced together with full enforcement next year. He added that the initiative was not intended to encourage smoking but to help the public distinguish legitimate products from illicit ones, especially amid growing concerns over fake tax stamps. “Consumers will also be able to use the app.” He said enforcement would be

Wildlife trafficking scourge becoming more prevalent KUALA LUMPUR: Wildlife trafficking syndicates are exploiting regional demand and porous cross-border networks while law enforcement efforts continue to net mainly low-level operatives instead of the masterminds orchestrating the trade.

Kanitha said Malaysia remains both a source and transit hub for trafficked wildlife, with syndicates operating across borders and adapting quickly to shifting consumer demand. – SYED AZAHAR SYED OSMAN/THESUN

for traditional Chinese medicine. Tomorrow, someone else will come up with something else.” Wildlife and National Parks Peninsular Malaysia Department Enforcement division senior assistant director Hellen Menging Anak Bennett Buan said combating wildlife crime requires coordinated action involving the Wildlife and National Parks Department, police, Customs, Immigration, state authorities and NGOs. She cited data showing that Operasi Bersepadu Khazanah recorded RM398.6 million in wildlife-related seizures between 2019 and 2025. – By Faiz Ruzman

Malaysia country director Dr Mark Ryan Darmaraj said consumer demand remains the key force sustaining poaching and trafficking activities. He said traffickers were continuously finding new ways to monetise wildlife parts, and cited a case involving an elephant carcass discovered without tusks but with sections of its skin removed. “It turned out there was a trend where the skin was used to make trinkets. It came under the disguise of being used as an amulet to ward off evil spirits. “That is how perverse demand can be altered and shifted. Today, one part of the tiger can be used

“You may have a bag full of 200 tortoises. If half of them die, smugglers just think that is the cost of doing business. They can still make money from the remaining 100.” Earlier during the forum, Kanitha said demand for wildlife products was constantly evolving, with animals trafficked for pets, traditional medicine, jewellery, display items, cultural practices and superstition. She said unlike some neighbouring countries where illegal wildlife is openly sold in physical markets, much of Malaysia’s illicit trade had shifted online. Wildlife Conservation Society