MACC: Tyre Scam Involves Unsafe Imports, RM350M Tax Lost

The Malaysian Anti-Corruption Commission (MACC) has uncovered large-scale tyre smuggling and forged trade documents that are believed to have cost the government about RM350 million in lost tax revenue since 2020.

'The operation, codenamed Ops Grip, involved simultaneous raids at 23 locations across the Klang Valley, Penang and Johor. Tyre importers, warehouses and storage containers were targeted, and investigators froze private and company accounts worth around RM70 million.

Sources told Bernama the scam involves up to 300 containers of tyres brought in annually. Around 100,000 tyres a year, mostly for heavy vehicles and valued at RM1,600 each, are smuggled in with unpaid import duties and sales tax, depriving the government of roughly RM70 million annually.

Some of the seized tyres were stacked in containers as high as four storeys, with certain units sold for as little as RM85. Authorities warn that substandard and used tyres entering the market pose serious safety risks, describing them as a “ticking time bomb” for motorists.

The controversy comes as tyre prices in Malaysia have surged, with increases of 5% to 10% in recent years and some reports suggesting prices have tripled since 2022. While the weaker ringgit is often blamed, enforcement officials believe smuggling and market manipulation have also played a role.

Road safety advocates, including Road Safety Expert Association founder Jamil Manan Supri, have long warned that tyre failures are a leading cause of heavy vehicle accidents, citing repeated incidents of “flying tyres” on highways. He has criticised what he calls weak enforcement, urging tougher action.

MACC Special Operations Division senior director Datuk Mohamad Zamri Zainul Abidin confirmed the raids, saying investigations are ongoing under the MACC Act 2009 and the Anti-Money Laundering Act.

“MACC will not compromise with any party that tries to profit through corruption, money laundering and smuggling that is detrimental to the country,” he said.

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