Kuala Lumpur: The Royal Malaysian Customs Department (Customs) aims to strengthen its strategies and international cooperation to protect the country's economy from illicit threats, its Intelligence Division director Cheong Yu Min said.
According to BERNAMA News Agency, Cheong reiterated the department's commitment to combating smuggling and organised crime, emphasising the importance of international collaboration. He noted that smuggling is closely tied to organised and transnational crime, with the Customs Department having participated in over 10 international operations in 2024, which provided critical information leading to case successes. He shared these insights as a panellist at the Asia 2025 International Security Summit and Expo (AISSE) during a session titled 'Defending National Economies: Strategies to Combat Illicit Trade and Strengthen Economic Resilience'.
Last year, the department recorded its highest-ever revenue collection of RM65.57 billion and handled more than 7,000 cases involving misdeclaration, undervaluation, and other offences. Cheong explained that the department is responsible for indirect taxes, focusing on commodities whose classification determines their taxability or permit requirements. Fuel commodities remain a priority, and tobacco and liquor seizures accounted for over 3,500 cases.
On narcotics, Cheong reported that the Customs Department successfully handled more than 500 cases in 2024, uncovering smuggled goods and indirect tax offences valued at over RM1.6 billion. The focus remains on targeting large-scale syndicates and significant shipments, prioritising impact over quantity, with aspirations for greater revenue collection and operational success in 2025.
Fellow panellist Ahmad Shahran Shafiae, Director of the Anti-Money Laundering and Anti-Terrorism Financing (AMLA) Management Section, LHDN, highlighted the significant threat posed by illicit trade to Malaysia's economy. He explained that illegal business activities and non-compliance with tax declaration obligations result in tax losses, draining public resources and undermining government revenue. The shadow economy, which includes undeclared and illicit trade activities, represents a silent drain on public resources, affecting funding for essential public services such as schools, roads, utilities, and law enforcement operations.
Ahmad Shahran also discussed the challenges posed by the rise of digital platforms and e-commerce, which have transformed the landscape of illicit trade. The digital transformation has enabled illicit trade to expand into areas such as cryptocurrency transactions and online marketplaces. While e-commerce platforms offer competitive prices, they also provide opportunities for unregulated transactions.
He further highlighted the importance of addressing emerging sectors, such as the e-waste industry, which, despite generating significant income, contributes to environmental pollution. An e-waste processing facility can generate more than RM100 million annually, but the pollution remains a concern for the country.