After Singapore strengthened e-cigarette regulations, the price of black market products increased by three times

Key points:

·Consumer trends: After Singapore tightened control over e-cigarettes, there has been an increase in demand for purchasing e-cigarettes in Johor Bahru, Malaysia. Local businesses estimate that 95% of their customers are from Singapore. 

·Evasion methods: Johor Bahru businesses are selling e-cigarettes through methods such as "disguising physical stores" and "concealed operations," while also providing simple packaging to help conceal the products. 

·Cross-border smuggling: Some businesses offer "high-priced cross-border delivery" services, resulting in a three-fold increase in the black market price of e-cigarettes from Johor Bahru to Singapore. However, many delivery personnel are now refusing to take the risk due to fear of penalties under the new regulations. 

·Escalating risks: Experts point out that the increased difficulty in obtaining e-cigarettes and rising prices may lead users to turn to even more underground suppliers, increasing the risk of exposure to other illegal substances. 

·Legal consequences: Singapore imposes heavy penalties on those found possessing, using, or purchasing e-cigarettes. Foreign nationals who violate the regulations may face severe penalties, including fines and possible banning from re-entering the country.

According to Channel News Asia, despite Singapore cracking down on e-cigarettes, local businesses in Johor Bahru, Malaysia have reported that Singaporeans are still the major consumers of cross-border e-cigarettes in the city. Retailers estimate that 95% of their customers are from Singapore.

One week after Singapore implemented stricter regulations on September 1st, a shop owner stated, "Just yesterday, a Singaporean customer bought four disposable e-cigarettes...he brought them back to the country with him." Located just a 10-minute drive from the Johor Bahru Customs, KSL City Mall and the surrounding 10 e-cigarette shops have become a popular shopping destination for Singaporeans. An investigation revealed that the mall is also a hub for the sale of e-cigarette related products.

Although e-cigarettes are banned in Johor state, just like in Singapore, many vendors in KSL mall use backpacks, wallets, phone accessories, and electronic products as cover to display a variety of colorful e-cigarette products. One retailer mentioned that disposable e-cigarettes are the most popular among Singaporeans due to their lower prices.

These shops are mostly operated in a counter format, but there are also independent e-cigarette shops around Johor Bahru, offering a wider range of products and allowing customers to try them out. Larger shops have taken more cautious measures to conceal their presence: one hides its storefront behind a car wash and uses dark tinted glass, while another controls customer flow by locking the front door and hides the e-cigarette area behind a black curtain in the background.

The phenomenon of Singaporeans forming a significant customer base for e-cigarette shops in Johor Bahru has been observed over the long term.

As Singapore authorities ramp up enforcement efforts, some Malaysian retailers are now offering advice to customers on how to avoid customs inspections. Some businesses are even providing discreet packaging, such as plain black plastic bags or large white envelopes, to help customers conceal their goods.

However, not all businesses are taking risks. Several sellers have stated that they have suspended cross-border delivery services since the increased penalties on September 1. One business owner admitted, "Customers want to buy goods, but drivers are too scared to deliver them. In the past, we used motorcycles and cars to transport goods, but now it is too risky with the increased strict inspections.

The new regulations in Singapore also apply to incoming foreigners, with those caught carrying e-cigarettes facing fines and confiscation of their devices. Repeat offenders will face more severe consequences, including being banned from re-entering the country.

There are still a few merchants willing to continue delivering goods to Singapore at a higher cost. They revealed that the black market price of e-cigarettes in Singapore has reached three times that of Johor Bahru, and the shipping fees per order have also increased significantly since September 1st. One seller emphasized, "Now that the customs checks are stricter, if you want to get goods past the border, you inevitably have to pay higher fees because it involves taking a huge risk.

Another merchant claimed to know a Malaysian delivery driver who has been involved in smuggling e-cigarettes between Singapore and Malaysia for nearly a decade. Additionally, a retailer asserted the ability to offer same-day delivery by maintaining local inventory in Singapore and conducting most transactions instantly through Telegram.

Associate professor Razwana Begum Abdul Rahim, director of the Public Safety Program at the Singapore University of Social Sciences, pointed out that as e-cigarette prices rise and access to them becomes restricted, some users may turn to more covert and affordable suppliers. "This is very dangerous because these products are unregulated, of unknown quality, and users may come into contact with other illegal substance networks." She emphasized that once in contact with illegal dealers, users are more likely to be exposed to drugs. "Some people may switch from e-cigarettes to drugs such as ketamine out of curiosity, peer influence, or simply because these alternatives are sold in the same illegal supply chain as e-cigarettes.

Dr. Jimmy Lee, a member of the National Anti-Drug Committee, pointed out that the use of e-cigarettes "can make people accustomed to addictive behavior, increasing the risk of drug abuse. It is crucial to continually strengthen prevention awareness in order to empower communities to make choices to stay away from drugs.

According to Singaporean law, individuals under 18 found in possession, using or purchasing e-cigarettes will be fined 500 Singapore dollars (approximately 390 US dollars), while those above 18 will face a fine of 700 Singapore dollars (approximately 510 US dollars). Repeat offenders will be required to undergo rehabilitation treatment, and those who do not complete the program will face prosecution. Offenders caught for the third time or more will be taken to court and may face a maximum fine of 2000 Singapore dollars (approximately 1,457 US dollars).