M’sian Media Claims Some People Are Smuggling Duty-Free Cigarettes & Alcohol Out of Forest City

If you’ve heard of Johor’s Forest City, chances are you know its reputation as a “Ghost City”. While the development was set up to be the ideal integrated residential area and private town targeting wealthy Chinese residents, it has since struggled to appeal to investors and tenants alike.

These days, all that’s going for Forest City is its duty-free zone, which has been the only thing attracting visitors to its otherwise secluded premises.

However, such a perk might end up doing more damage to Forest City’s reputation as the number of cigarette and alcohol smuggling cases attributed to the area continues to rise.

Runners Allegedly Charge RM25 to Smuggle Cigarettes and Alcohol Out of Forest City

These days, Forest City has become a hotbed for cigarette and alcohol smuggling, with a slew of shady “agents” and their runners profiting off the smuggling of these items past security checks and out of the Forest City area.

The New Straits Times sent a reporter to investigate the ten duty-free shops allowed to sell limited quantities of cigarettes and alcohol to customers.

During their investigations, they discovered “agents” charging fees of RM25 (around S$7) per crate to smuggle beer past security checks, with other items like liquor and cigarettes having separate charges.

Even with the smuggling fees, “customers” are still able to smuggle duty-free alcohol, which is much cheaper than its regular retail price.

According to the reporter, one crate of Tiger beer is usually sold at the retail price of RM143.90. With the same crate of beer being sold at RM74.30 at Forest City’s duty-free stores, it would still be cheaper than the regular retail price, even with the addition of smuggling fees.

Undercover NST Reporter Reveals Information Regarding the Smuggling Process

The New Straits Times highlights that according to laws governing the duty-free zone, each customer can only purchase three crates of beer, five litres of liquor, and three cartons of cigarettes at duty-free prices.

These items are also meant to be consumed exclusively within the Forest City Area and are not allowed to be taken outside the premises.

Despite such a rule being put into place, agents who claim to be on “good terms” with the security customs staff have caused the problem of cigarette and alcohol smuggling to continue festering in the area.

Those who purchase the services of such agents meet up with runners in secluded locations, such as the complex’s basement car park, for the exchange of goods. The runner would then load a vehicle with goods and drive out of the complex, usually manned by a customs officer and a Forest City security guard.

NST provided a photo of such a vehicle being filled with large quantities of beer and other smuggled goods.

The runner would then meet up with the “customer” outside the premises of Forest City, in which money is handed over in exchange for the smuggled items.

The runners and the owners of duty-free stores might allegedly collaborate on smuggling operations despite operators declining such claims.

In the reporter’s interview with one such runner, the runner claims his services help to contribute to the livelihood of duty-free operators due to the lack of visitors to the secluded Forest City area.

Checks at the customs checkpoint are relaxed, too, as the reporter claims that there was no customs officer on duty at the premises, with the security guard stationed at the checkpoint failing to check the vehicle for smuggled items before allowing the reporter to leave.