Top image: Andre Frois / RICE File Photo
Fewer people would tune in to MMA fights if the devastating effects of chronic traumatic encephalopathy were impossible to ignore. Similarly, buying imitation cosmetics, sneakers, and apparel might lose appeal if their hidden ramifications were more visible.
In a time when housing costs are bewildering and inflation feels untameable, sacrificing authenticity over cost feels like a savvy move. But are such choices truly smart or shortsighted?
It’s easy to understand that accessibility is the driving force behind buying fakes. Someone who wants to showcase their wealth might buy a fake Louis Vuitton handbag, which can be found for as little as $50 compared to the $2,000 price tag of the original. Imitation Acme La Vie T-shirts, which can be found for around $20 online instead of $100 to $200, have become coveted. For those who want to quit smoking but can’t find legal alternatives, they hit the black market to get cheap vapes filled with unknown chemicals.
But beneath their affordable allure, the counterfeit trade conceals a dark reality of human rights abuses and serious risks to health and safety.
The Ripple Effects of Counterfeiting
When we transact within the black market, many of us only think of the potential fines. But those penalties exist for a reason—beyond the billions lost globally to counterfeiting. They’re meant to alleviate the deeper devastation that seeps into our communities when we enable illicit trade.
While some Singaporeans grumble about living in a supposed nanny state, we often fail to see how these laws shield us from ourselves. A report by the Transnational Alliance to Combat Illicit Trade (TRACIT) and the EU-ASEAN Business Council (EU-ABC) highlights the harm inflicted by illicit trade—not just on economies but on people.
Counterfeit goods aren’t just cheap imitations—they’re a growing menace, crippling local businesses and wreaking havoc far closer to home than we’d like to admit. From unsuspecting consumers to beloved pets, the toll of counterfeits in and around Singapore is both widespread and deeply personal.
“Recently, my client’s food supplements were counterfeited. A customer had mistakenly bought the counterfeit replica online, and it caused his mother to fall ill,” shares Yeap Boon Toh, the CEO of brand protection company GTS Brand Protect.
“Those arrested are often sellers, and it is difficult to get to the manufacturers, whose counterfeit products even include diabetic medication that contains sugar.”
Besides sellers, the illicit trade has also lured many migrant workers in Singapore to traffic their goods for a quick buck. It’s especially rampant in the shady industry of duty-unpaid cigarettes here.
Most disconcertingly, the impact isn’t confined to end-users either.
A Global Chain of Harm
This recent report highlighted how victims of illicit trade span every link in the chain—from origin countries where counterfeits are made to transit hubs and destination markets.
In manufacturing hubs, counterfeiting is often tied to organised crime and forced labour. With counterfeit revenue exceeding a staggering USD 40 billion, criminal organisations amass the resources to wreak further havoc on innocent lives.
Transit countries face their own battles. Corruption festers as smugglers bribe or threaten forwarders and officials to ignore illegal shipments.
Even Singapore, with its status as a major global port, isn’t immune. We don’t need to look far to read about local law enforcement turning a blind eye to counterfeit goods. This undermines our trust in authorities and the integrity of our supply chains.
The key to tackling this issue lies in cross-sector collaboration. Governments must tighten regulations to eliminate loopholes, while partnerships with private entities can bolster enforcement measures.
Businesses, with their grassroots insights, often possess critical intelligence that authorities might overlook. Tapping into these on-the-ground perspectives will not only refine enforcement but also create a more unified and effective response.
Lonneke van Zundert, a financial crime investigator and illicit trade prevention expert, underscores this need for cooperation. “Private entities don’t have enforcement power but hold valuable information that can aid authorities”. She adds that Free Trade Zones may be misused by illicit traders and organised crime. Also, illicit shipments are often mis-declared, and there are instances where smugglers turn off their ships’ automatic identification system (AIS) to avoid detection.
Public-Private Partnerships are therefore key to success in preventing illicit trade. Both brands and authorities have been urging freight forwarders to step up and carefully inspect the cargo they handle. But these recommendations can only go so far without stronger and more robust regulations and enforcement.
“Governments must take persistent action—through stronger enforcement, frequent prosecution, and harsher penalties to deter illicit trade.”
A 2023 report by the World Customs Organization (WCO) highlighted illicit trade’s role in money laundering and financing terrorism and “the urgent need for enhanced collaboration between the global customs community and industry stakeholders”.
So, would Singaporeans still buy illicit vapes and apparel if things like fatal toxins and forced labour were made more obvious?
Sadly, many still would. In our culture, bargain hunting and “flexing” with fake luxury items are widely inculcated and deeply ingrained behaviours. The kiasu mentality has been normalised over decades.
From pirating TV shows and movies to hunting for imitation luxury items in Kuala Lumpur, Dongdaemun and Chatuchak, we’re consuming fakes without batting an eyelid.
Education is essential to informing consumers about the real consequences of their choices. The pervasive nature of counterfeiting, which affects industries from fertiliser to infant formula, is life-threatening and warrants immediate action.
By making the hidden victims and real dangers of illicit trade more tangible, we might inspire consumers to pause and rethink their choices.
The True Cost of Convenience
Consumers need to understand the real impact of their choices. Businesses and authorities need to emphasise that they are protecting not just profits but the people and communities they serve.
When consumer demand for a potentially harmful good or service cannot be quashed, regulation has proven to be an effective remedy. In the case of alcohol and pharmaceuticals, regulation has significantly mitigated damage. Regulation has minimised the influx of potentially fatal counterfeits, along with the meddling of criminal organisations.
In countries that have allowed smoke-free alternatives, authorities regulate the products’ ingredients and ensure they’re safe, protecting both public health, including those of youths with easy access, and legitimate businesses. Blanket bans, on the other hand, often backfire—driving demand for dangerous goods instead of reducing it.
Vaping isn’t a widespread epidemic yet, but I wouldn’t rule it out, given the rate at which Singaporeans are inhaling the unregulated ingredients of their black market vapes.
When it comes to the destruction of health, safety, and integrity, counterfeit and contraband are one and the same. The allure of the underworld’s products lies in their deceptive promise of value—an illusion that masks the profound harm they inflict.
As Singaporeans, we pride ourselves on resilience and pragmatism. But resilience is not just about adapting to challenges. It’s about standing firm against choices that erode the integrity of our society. And pragmatism must extend beyond short-term savings to encompass the long-term welfare of our families, neighbours and future generations.
Beyond enforcement and legislation, subduing the illicit trade requires a cultural shift—a collective awakening to the bigger picture. By choosing ethical alternatives, supporting transparent businesses, and educating ourselves and others, we can start dismantling the power structures that sustain this shadowy economy.
