Malaysian Authorities Struggle with Rice Smugglers Crossing Borders Despite COVID-19 Restrictions

Despite Malaysia Strengthening Borders, Thai and Vietnamese Rice Still Crossing
Farmers Appeal, "Deploy Patrol Guards"

[Asia Economy Kuala Lumpur Hong Seong-a Guest Reporter] Despite strengthened border controls due to the COVID-19 pandemic, Malaysian farmers are struggling with the smuggling of rice from Thailand and Vietnam.

According to the Malaysian Ministry of Agriculture and Food Industries on the 29th, despite the strengthened border controls due to COVID-19, the smuggling of rice from Thailand and Vietnam continues, threatening domestic farmers. From January 27 to December this year, the value of smuggled goods including rice, poultry, frozen meat, fruits, and vegetables seized by the police reached 2 million ringgit (approximately 54.3 million KRW).

Smugglers have been importing high-quality rice from Thailand and Vietnam and selling it at prices lower than Malaysian rice, gaining significant profit margins. Rice smuggled from Thailand was found to be traded at around 48 ringgit (approximately 13,000 KRW) per 10 kg.

They use containers to smuggle large quantities of rice and prepare import permits (AP), making their smuggling methods increasingly sophisticated. Additionally, smuggled rice is stored in abandoned houses or warehouses near the Malaysian border before being distributed immediately. The smuggled rice is mainly traded at night markets or small businesses. In Malaysia, rice imports require an import permit from the Ministry of Agriculture and must be imported only through the state-owned company Bernas.

In September, 227 sacks of rice worth 34,000 ringgit (approximately 920,000 KRW) were seized while being distributed in the domestic market, and in November, 850 kg of rice smuggled from Thailand was found in a warehouse near the Malaysia-Thailand border. Although Malaysian authorities have strengthened border surveillance by installing drone monitoring systems, smugglers continue these illegal activities because they can sell Thai and Vietnamese rice at prices lower than domestic rice and earn high profits.

The group most affected by rice smuggling is the farmers producing rice in Malaysia. Non-governmental organizations (NGOs) and domestic academia have warned that rice smuggling will directly impact farmers' livelihoods and the agricultural ecosystem, urging the deployment of additional security personnel at border checkpoints and strengthening smuggling inspections.

As of 2016, Malaysia's rice production was 27 million tons, with 67% of the rice consumed domestically being locally produced, and the rest imported from Thailand, Vietnam, Pakistan, and other countries. Malaysia aims to reduce import dependence and increase rice self-sufficiency to 75% by 2025. However, experts point out that rice has been secretly distributed for years and that inadequate enforcement is causing difficulties for domestic farmers. Professor Mohd Fauzi of the National Professors Council stated, "The Malaysian government announced a goal to increase rice self-sufficiency to 75%, but the influx of low-priced smuggled rice is lowering farmers' incomes. We need to reduce dependence on imported rice and strengthen surveillance systems to eradicate smuggling."

This content was produced with the assistance of AI translation services.