Tighter rules fuelling illicit cigarette trade

Several dealers who agreed to speak to the Brunei Times on the condition of anonymity said that selling illicit cigarettes was “easy money” and a remedy to financial hardship.

“It is just simply profitable, your capital is very low but your profit is good,” said one dealer, who sources his goods from a neighbouring country and sells them on-the-move in Brunei.

The 34-year-old said that he had been able to live off illegal cigarette money since becoming involved in it two years ago. “I bring in the cheapest brands because that is what is in demand here. I know the quality of cigarettes may not be as good with cheap brands, but we are talking about cigarettes here. There’s no such thing as good cigarettes,” he said.

The dealer added that tighter regulations imposed on tobacco products and lack of access were “feeding” the black market.

“What the government is doing will only encourage more smuggling into the country. They’re feeding the market,” he said.

Another dealer who restocks the goods twice a month said a carton of Malaysian brand cigarette ERA would only cost him US$6 and fetch $20 (Bt 625) when resold in Brunei.

“The demand is that high in Brunei. We have a lot of smokers in the country and they need to smoke. They need the supply. Stopping the sales of tobacco here isn’t going to stop Bruneians from smoking,” he said.

“I know a friend who has been making a lot of money from the business. I know this is a high-risk but it pays well,” said a 24-year-old college student also capitalises on the growth of the illicit tobacco market.

“For me, this is quick and good money small capital but double the return on investment. I think the new regulations opened up this illegal activity. It made people desperate,” he said.

The student, however, believes that it is only a matter of time before the authorities put a complete stop to the activity. “I’m just enjoying the fast money while it lasts,” he said.